House values (Stick house, timber frame, log)

5 Replies

I have been wanting to get into real estate. But one thing I did want to do is buy land and build on it. And so I wanted to hear what you all said about the values of houses on property.

I am just going to make up a house build and see what you think the values of them are. 

The houses are brand new, 4 bedroom, 2 bath. It has a full-size basement and small attic (crawl space). The houses are made of Log, Timber frame and stick (Maybe the wrong term. But that is what I used in construction regarding building made of something like 2x4 with drywall)

I know that you really can't give a great value since this is all made up. But I was trying to see which type of house would value.

@Boone McEntire  are you trying to get what the value would be after building or construction cost? While both will vary construction cost will be close, by value will be determined by location. You can build a million dollar home in a 30k area and its only worth 30k (well a little more, but my point remains). IF you are doing everything yourself and keeping it simple then 45-55 a sq ft. Also not sure about well/septic or city utilities as this will impact cost as well.

Originally posted by @Jeremy Tillotson :

@Boone McEntire are you trying to get what the value would be after building or construction cost? While both will vary construction cost will be close, by value will be determined by location. You can build a million dollar home in a 30k area and its only worth 30k (well a little more, but my point remains). IF you are doing everything yourself and keeping it simple then 45-55 a sq ft. Also not sure about well/septic or city utilities as this will impact cost as well.

 I was afraid I might have worded it wrong.

Basically I am just asking if one house is worth more than the other. As I have not gotten into real estate quite yet, I have not had the experience that others will. I could get the cost of building these houses, and figure out all of the little things and that type of thing. But would a Log house sell for more than a timber frame? Would it add value to a property, more than a different type of house?

Does that make more sense now?

@Boone McEntire  I would think so but I have never really looked into it. A log home is usually more to build. I have used a concrete log siding, that looks like wood without any maintenance, I can get you the company info if you want. 

A log home would need to be in the right setting. I lived in one for 5 years and I could get into owning one again for a cabin but I would rather have traditional type home as my primary. Just my taste though.

If you're building from the ground up.... consider Insulated Concrete Form (ICF) homes.

Essentially, you get VERY light pallets, which are like styrofoam panels that sit parallel to each other, being connected by plastic accordion doohickeys to make the "block" form.  Start stacking these blocks on top of each other over the course of a week.  Then in ONE day, you pour the concrete between the parallel styrofoam wall/block dealies, and you've got yourself the best house money can buy.  They are SLIGHTLY more expensive than stick homes, from what I hear.... but in the long run, these houses are FAR more energy efficient, mold / flood proof, sound proof, termite proof, rot proof, etc.  The only disadvantage I'm aware of is that they are a bit more difficult if the owner wants to alter the home, add-on or whatnot down the line.  I'm really surprised that all homes aren't built this way today, but builders I guess stick to what they know, not what is optimum.  Personally, I prefer optimum.

I was considering buying a VERY cheap piece of land next to a railroad track and just north of our hurricane prone beach.... then building one of these ICF homes.  But as I was researching the ICF building process on YouTube, somebody else grabbed it up.  Pretty silly on my part, but I didn't want to maintain the property for a year or two while acquiring the money to build the house myself.  But ICF is definitely the way to go if you're living in it yourself.  And even if you're not, they make very excellent and certainly unique selling points.

EDIT:  Also, just remembered one other negative to ICF homes -- sq. footage.  Since the walls are thicker, you lose a little interior footage compared relatively to what stick homes look like on the outside.

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here