Are self build houses more expensive to buy?

jimpix12

Hi, I am interested in buying a self-build house but it seems to be about 15-20% overpriced. The EA has told me that these types of houses command about 33% (!) more than regular new builds because they are efficient etc. I'm pretty sure they're cheaper to build so was expecting the cost to buy to be less or at least the same.... Who is right?

For anyone interested, this is the property: http://goo.gl/Ymdka . It is a "Scandia Hus", they built the shell.

Seems quite overpriced to me, the EA said it was "fairly priced" . :money:

vickyj

A house is only ever worth what someone is prepared to pay for it. No matter what anyone else sais you just have to offer what you think it is worth.
It looks nicely done inside btw

hcb42

I wouldnt be paying the thick end of £400K that's for sure.

Outside just not to my taste

jimpix12

Yes, the interior finish is very good. I always intended to put in offer of around 15-20% less than what they have it on at; the EA knew this and was happy to show me around with this in mind. I am fully expecting to have my bid rejected - but just wondered if anyone had any input on Scandia/other self-build prices in case someone comes along and pays full whack

Owain_Moneysaver

Self-build can be cheaper because the self-builder takes on (unpaid) the project manager's role, puts in a significant amount of 'sweat equity' and foregoes the developer's profit margins.

However because the self-builder is building for himself and more involved in the build process they will usually have a higher specification especially on things like insulation which cost very little to put in at build time but is so easy for spec builders to cut back on.

Self-builds also tend to have more character than spec build mass-market homes and to have been very well finished, so can attract a premium resale value. They're also more likely to have an insurance-backed inspection and guarantee scheme rather than NHBC.

Owain_Moneysaver

Looking on Rightmove, there are also new build 3-bed semi-det or terraced at £395k and £410k. There's also a 4-bed at £325, so presumably the area (school catchment?) has quite an impact on value.

It's not that nice a house though; whoever passed that roof design should be shot.

jimpix12

Thanks Owain, that's helpful. What sort of premium is likely to be commanded, as a ballpark % figure? 33%...?! Comparatively, here's a property that is on cheaper land (i.e. not quite as nice area) and isn't self-build: http://www.rightmove.co.uk/property-for-sale/new-homes/property-19734234.html , it does however have 1 more bedroom but is £100k (25%) less...

leveller2911

I don't think we can see from the photos whether or not the finish is of good quality.One thing I can say is that the interior doors only have 2 hinges instead of three which is not a sign of quality.I'm not quite sure why they would have a stainless steel oven and white dishwasher and washing machine, seems like a lack of thought to me.The light switches etc look bog standard white ones so I doubt its high spec quality but just my penneth worth.

Skanda hus do make some nice quality houses but if they built the shell only then theres no telling if the rest of the build is any better than a site house.

Wonder if the "self builder" built it to live in or just sell on completion in which case spec and quality could be reduced to gain more profit.

Nice area around Matfied ,like it...........



If you look at the photo of the shower/bathroom and look at the boxing in under the sink with the tiled top and front , to be honest its a poor job with no thought put into it. Then look at the bathroom in the 2nd cheaper house and at least the sink looks decent.

On there own these are small details but it does give you an idea as to whether the spec/finish to a house is top notch or not.

GDB2222

What's that boxed-in thing in the garden?

Unless the construction is demonstrably better than average (and I can't see anything to show that) I don't think it's worth a premium at all.

jimpix12

It's the oil tank. Theres no gas in the village.

will check on how much scandia actually did themselves, tomorrow...

jennifernil

Looks very expensive to me, but then we are not near London!

Our house is a totally unique self build, 2800 sq ft plus double integral garage, 9 apartments, in one of the best areas around Glasgow, almost 1/4 acre plot, and we would probably struggle to get £500k right now.

I would expect a "self build" to be a little special, have a very high spec. this one is not that attractive, nothing special inside.