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Way back in 2016, I proclaimed a downsize challenge for me and Mrs. Groovy. Here is what that challenge entailed.
- Sell our Charlotte home for roughly what we bought it for ($225K).
- Use the proceeds of the sale (roughly $210K after realtor fees and closing expenses) to build a house in the Raleigh, North Carolina, area.
- Build a small (1,200-1,400 sq. ft.) but quality house on at least two acres.
- If our future house costs $185K, our housing downside challenge will have succeeded and we can happily fulfill our international travel goals—hello Ecuador, Vietnam, and Australia. We will, however, have to travel to and from Australia like the sorry people (i.e., economy class).
- If our future house costs less than $171K, we’ll have enough money to fulfill our international travel goals and get to and from Australia in style (i.e., business class).
Well, more than two years have past since I proclaimed the downsize challenge, and even though the foundation to Groovy Ranch hasn’t even been poured yet, the results of the downsize challenge are crystal clear. Here they are.
- Success. We sold our Charlotte home for $250K.
- Success. After realtor fees and closing expenses are accounted for, Mrs. Groovy and I walked away with $233K. And the land we bought for Groovy Ranch is about forty minutes north of Raleigh.
- Small failure. Groovy Ranch is going to be 1,528 square feet, a little more than our downsize challenge limit of 1,400 square feet. On the bright side, however, Groovy Ranch will sit on 3.3 acres. That’s 1.3 acres more than we were shooting for.
- Massive failure. The cost of land, Groovy Ranch, and Groovy Garage is going to be $290K as of now. There’s a chance it might go a little higher, but I don’t see it going over $300K. But whether it’s $290K or $300K, the total cost of Groovy Ranch is going to be a tad more than the downsize challenge of $185K. Bottom line: I still think Mrs. Groovy and I will travel to Ecuador, Vietnam, and Australia in the next five years or so, but it won’t be funded with the results of the downsize challenge. Not even close.
- Massive failure. Yeah, right. When we go to and from Australia, our pathetic butts will not know the bliss of business class or first class seats. They’ll only know the anguish of economy seats.
Groovy Ranch Costs to Date
Okay, the downsize challenge has turned into a dismal joke. But that’s the way things go if you want to build a house with nice finishes. There’s simply no way you can build a 1,500 square foot house with hardwood floors, granite countertops, stainless steel appliances, recessed lighting, vaulted ceilings, and HardiePlank siding for $121 a square foot—at least not in the Raleigh area of North Carolina. The total cost of Groovy Ranch is going to be more like $190 a square foot.
| Ranch | Total Cost of Land, House, and Detached Garage | Cost Per Square Foot of Heated Space (Total Cost Divided by 1,528) |
|---|---|---|
| Downsize Challenge Groovy Ranch | $185K | $121.07 |
| Actual Groovy Ranch | $290K | $189.79 |
Since the downsize challenge is now officially over, I might as well move on to another challenge. And that challenge is? Keep the total cost of Groovy Ranch below $300K, preferably below $290K.
Here’s what Groovy Ranch has cost to date.
| Item | Cost |
|---|---|
| Land | $35,111.57 |
| Design | $1,480.35 |
| Permits | $883.93 |
| Site Prep | $0.00 |
| Foundation | $0.00 |
| House | $0.00 |
| Garage | $0.00 |
| Landscaping | $0.00 |
| Miscellaneous | $500.00 |
| Total | $37,975.85 |
Fight-O-Meter
I hesitate to even comment on the Fight-O-Meter. This no-fighting nonsense is for the birds.
Lunch Zemplified
Mrs. Groovy and I are 7 for 7. We met another blogger this week and her real-life persona is even more impressive than her digital persona. Amy from Life Zemplified rolled into Raleigh with her husband John for a car show and we managed to meet them for lunch. Now, I’m not going to torture you with the details of our rollicking, beer-infused lunch, but I will share my impressions of Amy and John. Here we go.
- Amy is even prettier in person.
- Amy is also a font of ideas, and expect followers of Life Zemplified and Women Who Money to be reaping the benefits of that fertile creativity real soon.
- John hobnobs with Saudi royalty.
- When John isn’t hobnobbing with Saudi royalty, he’s either designing engines, drinking beer, or finding solace on a frozen lake ice fishing.
- And, finally, don’t ever complain to Amy that she parked her car to close to yours. I’ll let her explain why on her website. All I’ll say right now is this: you’ve been warned.
Yep, Amy and John won us over with their passion for finance and their zest for life. Super cool people. Can’t wait to hang with them again.
[Mrs. Groovy here. Say what’s the big idea? You forgot to plug the post I wrote for Amy and Vicki’s Inspiring Money Stories. It’s called You Can Start Late and Still Retire Early.]
Final Thoughts
Okay, groovy freedomist, that’s all I got. What say you? Should I bow my head in shame for failing at my downsize challenge so spectacularly? Or should I give myself a break and chalk up my failure to the fickle world of real estate and residential home construction? Let me know what you think when you get a chance. Peace.
Whoa, I hope you can keep the cost below $300k. Like Tonya said below, that number will creep up.
We’ll have to visit when the ranch is done. It’ll be amazing. 🙂
I’m trying to compartmentalize. If we take the cost of the land and the garage out of the equation, we’re basically looking at $150 sf on the house.
Hey Mr. G! I say give yourself a break. I doubt that there’s anyone out there who has gone through this process, coming in on/below target.
The important thing is that you will have the home you want and will still be able to travel internationally.
And you’re educating your readers in the process.
Exactly, Mrs. G. It’s more money than I initially wanted to spend, but it’s what we want and we have the money. And, as you pointed out, we get to document a build from start to finish. Such an intimate view should help a lot of future home-builders. Thanks for stopping by, Mrs. G. Give my regards to Mr. G. Happy cycling.
This reminds me of any show I’ve ever watched EVER on HGTV where the price always increases or the renovation increases. Still, I think it will be worth it in the end. Happy you got to meet Amy. I was supposed to meet up with her and a couple others but I couldn’t make it happen back in Michigan. 🙁
I hear ya, Tonya. When we first moved down to NC in 2006, a home with decent finishes could be had for $100-$110 a square foot. But those prices are out the window in 2018. Land, labor, and materials are considerably more expensive, especially in the Raleigh area. But, hey, that’s the way it goes. It could be worse, after all. I imagine a similar home in LA or San Fran would cost three times as much. And sorry to hear that you weren’t able to meet up with Amy. She’s a fantastic lady and I’m sure the both of you would have hit it off.
It was not that long ago that you were “showing” the house for weeks! Look how far it’s come! Just WOW! This is very exciting and I’m so glad that choosing the builder and picking the finishes has been fairly smooth. The nuts and bolts of building is where the hair pulling begins but it sounds like things are well in hand. Can’t wait to meet you both but it sounds like it won’t be at FINCON! Boooo!
I have aspirations to visit Ecuador…I should be fluent by the time you go…I can meet you and “translate” 🙂
Hey, Bev. Yes, it’s amazing how far we’ve come. Our builder is starting the foundation this week. In fact, Mrs. G and I just selected the brick for the foundation. And, of course, we had about a hundred options. But we’re not looking to make a statement on the foundation, so we chose a classic red brick called Cape Cod. And, yes, we’re sad about FinCon as well. So many great people we want to meet, including yourself, of course.
P.S. Let’s talk about Ecuador. Perhaps we can all go to the next Chautauqua in Ecuador.
Isn’t it fortunate that there are bloggers in Australia with guest bedrooms??? Who are also 5 minutes from the beach?
(Just saying…)
When I flew to England I did it all in one hit, but most people choose to break a long journey in Dubai or Singapore. Just a thought to file away for the future.
🙂
We got to talk, FD. Mrs. G and I are thinking about heading your way in March of 2019. Are you near Sydney or Melbourne?
I’m in Melbourne. Look up Carrum. I’m on a train line into the city, but also close to the Mornington Peninsula if you like wineries. School holidays ) I’m a teacher ) will start in late March.
Send me an email if this looks interesting.
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geez, that sounds like a lot of money. our big stone house in buffalo was under 100k but i think we could get 300 if we sold. we’re not very young and i was thinking of maybe building one house in our lifetime, complete with ramps and old people amenities for when we’re crippled up. i’m not sure i would want to do it for that price. a couple of converted shipping containers might be more likely.
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I hear ya, my friend. We played around with the idea of a Quonset hut home and a shipping container home. Both would have been a heck of a lot cheaper. But in the end, Mrs. G was a little leery of going unconventional–and she’s the boss, by gum! But that 300K also includes 3.3 acres of land and a big garage (24 x 32). The house by itself is going to cost $230K. So, yeah, it’s more money than I expected to be paying. But don’t forget, I’m an ex-New Yorker, and a similar home on Long Island would cost me $600-$700K. Thanks for stopping by, Freddy.
P.S. I went to college in Buffalo and I love the city. Do you guys still have Mighty Taco and Bocce Club Pizza?
I have got a good feeling that once you’re finally moved into Groovy Ranch, you won’t regret the cost for a second:)
You will be reminded everyday on why you included the things you did, and it will bring you both joy daily!
That’s awesome that you guys have gotten to hangout with other PF bloggers! Mrs. FMM and I will be coming down to the Charlotte area whenever the Washington Wizards (BIG FAN) play the Charlotte Hornets this upcoming year (or early 2019) depending on when they play. We will have to try and meet up then!
Awesome, Sean. You can stay at Groovy Ranch and we can drive down to Charlotte the day of the game. Or Mrs. Groovy and I can meet you in Charlotte. Either way, my friend. We’ll have a blast.
Aw, I’m traveling to Australia next January and I’m a wee 5’0″ thing. If you were fun-sized you’d have a bit better time on the flight! ;o) I’m traveling economy, as well, but still using miles!
LOL! Mrs. G is sort of fun-sized. I’m not. So I definitely fear economy. But I suppose I’ll muddle through. Thanks for stopping by, Brittany.
Ugh, economy to Australia. I’m 6’4″ and had to do it. I wanted to just die.
Mostly successes here, and that’s good. Congrats on the sale!!
Your fans would love to see more fights but we’re starting to warm to the kinder/gentler Groovester.
Life is full of trade-offs, and if you feel that what you’re getting in the “premium” version of Groovy Ranch is worth it, then it’s not a massive failure. You’re allowed to change your mind and/or adjust your expectations. And I’m sure Groovy Ranch will be a grand place when it’s done!
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Thanks, Gary. We’re the king and queen of taking a step back, reevaluating, and changing course. We feel confident in the build and not anxious at all. That’s a good sign, right?
How did I miss the part about Groovy Garage? I like garages.
I wouldn’t say you’ve experienced a massive failure with the cost per square foot. I think you’ve just experienced a minor dose of reality.
We built our house in Raleigh in 2003. It’s not much bigger than yours and has some (not all) of the nicer finishes you guys are planning and it was about $145/square foot. That was 15 years ago. We have front and back porches, a screened porch, and a drive under garage (I like garages) – all things that add to the cost but don’t count in the square footage total. So $145/square foot was a pretty sweet deal even back then.
Oh, and we’re on 3.2 acres that we bought for $30,000 through a tax foreclosure auction and that was the steal of the century back in 2001 (the century was so young!).
I say give yourself a break.
I ready your post about the auction. Most certainly a coup on your part!
We’ll just take our lumps on this one but I think you hit the nail on the head by saying we got a dose of reality. It is what it is. We just thought it was important to talk about a failure so that we don’t present only the sunshine and lollipops side of Groovy life.
Thanks for stopping by, Brian!
Tell Mr. Groovy that winning 2 out of 10 fights (20%) is a solid percentage for a husband. I hover somewhere in the high single digits.
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Haha. I’ll remind him to bask in the afterglow of his wins, no matter how few they are.
Great score on the land, that’s a great price per acre! We found out like you did, that our estimate of bulding costs/sq ft versus actual varied quite differently.
Even using “higher” estimate prices, it still came out about $80k more than we were expecting, so yeah…
Since we’re not building that house anytime in the immediate future, those costs will be higher when it does get built.
Good luck on staying under $300k for your build! I’m rooting for you!
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Thank, Mr. SSC. Our realtors really helped with the price point because the list price was $49,900 and given what acreage was going for in the area, they come up with the right offer. BTW, the actual price of the land was $34K for 3.3 acres. Mr. G added in the lawyer’s fee (the same “seemingly competent” lawyer from a previous post, except for this transaction she was exceptionally communicative and easy to get ahold of).
Even though your house will cost more in the future, it must be a relief not to build right now with a bump of $80K.
First off, I think paying 35K for 3 acres is an amazing price. And selling for 25K more than you thought also puts you ahead. I can tell you from experience, you are going to be really challenged to keep that under 300K. As you go along, there will be “little” things that you decide you want to add.
So, here’s an idea. Add a column to the Fight-O-Meter when the add-on budget gets a “win” and your budget of 290K creeps up toward 300K. Those things should be a fight!
Thanks, Susan. We searched for land for more than a year and we’re very happy with our choice. No clearing was necessary. The land lays very flat. And the area is beautifully rural.
Right now we’re considering making the garage a little larger. If we go with that we’ll push the price point up.
I’d say this is so exciting! I think as long as the costs are not exorbitant, it shouldn’t be too bad.
I imagine this is your dream home, so it better have everything that you two need and want 😉
Thanks, Mrs. FAF. You’re totally correct. The final price won’t be exorbitant but the house will cost more than we thought. We could have chosen another builder which would have brought the cost down. But we just liked the way Terry builds very “old school”. No MDF (medium density fiber board) for him. Not even for closet shelving.
Clearly, you’ll have to add a loft apartment in The Groovy Garage. You’ll be the coolest blogger hangout this side of CO, and you can AirBnB it when no bloggers are in town!
That, or charge $50/ticket to the GoovyPaloosa extravaganza.
No regrets. It’s your dream house, and you’ll love there for years to come. Build what you want. Economy seats aren’t THAT bad!
Um. That loft is going to have to wait for another life-time. You know we thought about a loft in the house itself but went for a third bedroom instead. Which by the way, you’re welcome to use. Actually — I’ll use it. You and Jackie can have my bedroom.
Life is full of failures. Enjoy the pursuit and don’t focus so much on the failures. Plus your house is way cheaper to build than mine. I don’t even want to tell you the cost per square foot that I will have to spend.
Thanks, DDD. I feel confident that we’ll get the best house we can, with the nice touches and finishes we want, without going crazy expense wise. But yes, it’s more costly than we initially thought.
Looking forward to hearing about your house-building adventure.
I know that you want to keep your house expenses down, but you are also building your dream house. I say do what you want and what will make you happy, the money side will work itself out.
Thanks Mrs. Wow. I sometimes think about how we could have bought an older home with a few acres but Mr. G always wanted to build a new house to our own specs. Plus, the older homes are scary when it comes to electricity and other things behind the walls you just can’t see. Often, much needs to be re-done and brought up to code.
“If you build it, they will come,” – Maybe a bit pricey than expected, but it’s not often you get to build a dream/forever home. Just image the same house in NY, I’d say double they cost. 🙂 And since the Groovy’s are becoming the center of the personal finance in-person meetup, you’ll need a great hosting space.
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I can’t even imagine buying the land in NY, let alone the costs of building. The only way to build a new house is to knock one down!
The center of the personal finance in-person meetup — haha. Maybe we need a T-shirt with that.
If losing a challenge gets you one step closer to the life you want, I say good for you.
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Thanks, Jason. Mr. G actually forgot about the challenge post for a bit but I reminded him we had to own up to it. But yeah — we’re only building a house once so we should get it right.
Oh, Mr. G, you are way too kind! Thank you for all the wonderful words, but most of all for an awesome lunch and conversation. You and Mrs. Groovy are the best! John and I both look forward to more good times together.
With the way the real estate market has been, I’m not surprised with the cost of Groovy Ranch. Give yourself a break. You are retired and FI after all! Economy class will be enough grief.
Mrs. G, your post for us is great! Your fans will be happy you included the link here.
Now I’m off to flesh out those ideas and take care of some parking lot business…
I agree! Build the best Groovy party place ever! This is YOUR time! You don’t want regrets of what you should have done. And I’m making it my personal mission to set you travel hacking so that there will be no economy seats on those flights! We should get busy with that now though! We racked up hundreds of thousands of miles building the lake house….
I’m so pumped Vicki! If you’re making it a personal mission to get us started with travel hacking then I KNOW it will happen. Left to our own devices it’s just another thing we’ve got to do and more time we’ve got to spend on the computer.
The pleasure was ours! It was so great getting to spend time with you and John. We must do it again.
And thanks again (Vicki, too) for the opportunity to share with your Women Who Money readers!