Build New in NoVA for $1M?
Hi everyone. First time SFH prospective buyer in NoVA - not as an investor, but to live in.
Question 1: Is it reasonable to expect that for $1.0-1.1M, I can build a 3000-4000 sq ft home in the area? I've read that a builder's gross margin for new homes is around 19-20%, and many are 5000+ sq ft and 1.4M+, which is too much size and cost for us, so wondering if buying a lot, deconstructing/donating, and then building new on it is feasible for $1.0-1.1M.
Question 2: Our purchasing timeline is some time around Fall / end of year 2020. I understand some think that this is about the time we'll start seeing any foreclosures (from the economic impacts of the pandemic) kick in - how should this factor in to my thinking?
Background: Driving around neighborhoods (Vienna, Pimmit Hills, Dunn Loring area so far) and looking at online listings, it seems like new construction is always 5000+ sq ft. and $1.3-1.6M. It seems like lots (with or without existing home) go for $450-650K. Leaning towards new construction, aiming at 3000-4000 sq ft. Existing SFH seem to go for $700-900K, so it seems worth it to try build new if possible, but I'm seeking your thoughts as I'm a newbie - not to the area, but to buying in the area. If building new on a lot with existing home, would plan to try for deconstruction/donation of existing home materials for tax benefits.
Thanks so much for your thoughts, and Happy Memorial Day Weekend!