By David Fried

 

Part 1: Buying Vs. Building: What No One Tells You

 

We’ve all read plenty about buying a home—endless articles about choosing the right neighborhood, finding the right agent, and navigating mortgages. But when it comes to building a home? Crickets.

There’s a reason for that. The common belief is: “Home building is for rich people. You need tons of money. A custom home? That’s way out of reach.”

I know, because I said those same words for years—while living in a basement with four kids, unable to find a home that truly felt right.

It wasn’t that I was indecisive; in fact, quite the opposite as you’ll see. It’s just that buying a home is something most of us do once in a lifetime (especially if you’re just a regular person like me), and you want to make sure you get it right—no regrets and definitely no financial disasters.

Fast forward two years: I’m writing this from my beautiful, custom-built home. And guess what? It didn’t cost nearly as much as I thought it would.

In this column, I want to share my story—and more importantly, give you a roadmap. Because if you’ve ever thought about building a house but felt too overwhelmed, too unqualified, or too broke, you’re not alone. And it might be more within reach than you think.

 

Just ask!

When I was lot hunting, I checked the real estate section in The Voice religiously and was glued to Zillow. We had an agent constantly sending us listings. But I passed on a lot of properties, saying things like:

“The zoning setbacks won’t let me build anything big,” and “Even if I can build now, what if I want to extend later?”

Then one day, a lot came back on the market—one I had declined a year earlier for being “too small.” This time it was $100,000 more, but my agent suggested I get it surveyed by an engineer to see what the buildable area was.

To me, “engineer” sounded expensive. Why spend money on a property I didn’t even own yet?

Turns out, I was able to get the survey from the old home, which cost just $150—and it was a game-changer. It showed, based on public record, the exact building allowances based on local zoning rules. I learned that I could build a 2,500-square-foot home, which meant 5,000 square feet between two floors! That’s enough for a 3,500-square-foot duplex-size house that still leaves room for future expansion. Plus, I had options for a finished basement and attic.

 

The Broker’s Take

As a broker, I often encounter buyers eager to build their dream homes, but in their excitement, many overlook crucial elements that can significantly impact their building journey. My number one piece of advice is: Research your method of financing prior to moving forward with purchasing a lot. Understanding your budget is paramount, as building costs can frequently exceed initial estimates. It’s wise to leave room for error in your financial planning. If you plan to build, make sure you can afford to build, taking into account room for error. Speak to a builder and go through the numbers before going ahead with a lot, as a builder can provide valuable insight into costs associated with materials, labor, and timelines.

A lot may be priced well, but if it’s miles away far from your kids’ school and getting to work will take a half hour longer than before, it may not be worth it. You want to ensure that the location of the lot aligns with your lifestyle needs, taking into account factors such as distance from family and friends, neighborhood, schools, and work.

When purchasing a lot, you should inspect it for environmental concerns—such as wetlands and oil tank leakage—and you should have the water tableinspected, as this can impact your plans and help you decide about building a basement, planning a drainage system, and building your foundation.

Make sure to evaluate if the size and shape of your lot will accommodate your potential building plans. Assessing the lot is a must. A flat lot may be easier and less costly to build on compared to a sloped lot. This is important to know and take into account.

Purchasing a property to build your dream home is a significant investment that requires careful consideration and planning. Navigating the journey with a professional at your side (in every area) will help you make informed decisions that lead to a successful construction project.

Perri Goodman is a broker, the owner of Good Choice Realty, with expertise in the Toms River, Jackson, Lakewood, Manchester, Brick, and Howell areas and 15 years of experience. Her focal point is to service clients’ real estate needs with the most valuable source of guidance, knowledge, and information for buyers and sellers.