I think your reasoning is spot-on. With both of you working and so many kids you don't want to be renovating or lacking space.

However, given current market conditions I'd probably either stay put for another year, or buy a "used" McMansion in an established neighborhood. I know it's fun to pick out your own finishes, but you'd probably save some money and have a safer investment. You could also check out the neighbors ahead of time.

You might be surprised at the cost to go custom compared to upgrading the heck out of a track house. Our current home is a custom home built in a neighborhood similar to what you describe. About 15 percent of the houses in our neighborhood were custom (and most of those were lakefront) and the rest were built by the selected approved builders. Even the custom builders had to be selected off of an approved list. At first we interviewed the track builders, searched desperately for a floor plan that we liked, considered making all sorts of alterations, etc. Then finally one day it hit us. I think it was approximately the exact day I had just described a very specific electrical outlet plate that I wanted to have. Our relator looked at us and said, "Amy you're going to have to go custom. I don't think you'll ever be happy if you don't." Then the builder we were interviewing confirmed that there was no way he could make all of my requested changes and be able to charge less per square footage than the custom builders. In fact going custom turned out to be cheaper...not cheap, but cheaper than making oodles of changes to a stock plan.

iVillage uses software that filters out perjoratives-- simply won't let a message containing certain character strings to post.

Frankly, I really wish 'McMansion' could be added to the banned list: it's a perjorative, and I've yet to see a thread containing it in the title that didn't degenerate into something ugly. Webster's says its an 'excessively' large home on a small lot-- very subjective and not really adequete since every brownstone in NYC would qualify.

So I say build a house that meets your needs, to heck with how anyone on this board or elsewhere would define or describe it.

But do consider those needs carefully, and don't put a lot of money into rooms that will rarely be used-- for a lot of people, the formal living is used only for the Christmas tree, the formal dining only for holiday meals. That's just wasteful, whether you have a big custom house or a doublewide.

As to choosing a builder and plan, I personally would go for something that thrills you architecturally rather than the bells and whistles finishing: the countertops and flooring can be changed out down the road much more easily than the floorplan itself can be modified. I'd tour some homes built by the candidates, especially on a windy day, listen for noises, check windows for drafts, doors and floors for squeaks. Ask questions about specific products: are tiled showers built with Kerdi? Do the tile floors have a crack suppression membrane? What finish on the wood floors, r-value of walls and ceilings, etc.

I agree with the poster that you should consider a previously loved "McMansion" (larger, non-custom home). Large, phased developments like that are dangerous in a bad economy. Builders go under, things don't get finished. And there is also the likely situation that your house will be worth less than the newer, identical homes in the development. You may plan to stay 15 years, but if you need (or want) to sell earlier, you will have to price your home much lower than the new homes in order to sell it.

I would also be concerned about the builders for that development. They're local, smaller builders. This might be their first time trying production building. And expect the unexpected when it comes to contracts and timelines with any production builder. I'll never work with one again. Custom or pre-owned from now on.

I think you should take the advice of the posters above and consider looking for a large home currently on the market. You might be surprised at what your money can buy. And having some cosmetic remodelling done is really not that bad. Granite counters, new appliances, pre-finished hardwoods, can all be done with some minor inconveniences... even before you move in if the timing works right.

Definitely consider what Sue36 has said.

Do not trick yourself into a bad decision. Our "wants" really need to be tempered with the reality that this housing bubble bursting thing is far reaching and will continue to spread. (most likely)

The metro-Detroit area is undoubtedly unique in that we've lost 300,000 jobs in recent years, but the impact on the development of some of the McMansion neighborhoods is devastating. From entire neighborhoods of negative equity to unfinished developments to auctions of unsold property, there's not a real pretty picture.

There are isolated areas around the state that could weather the storm, and I'm certain that can be said around the country, but just be extremely cautious. McMansions are occasionally being built around here, but each one that goes up is a fraction of what their neighbors was, which brings the whole area down even further.

If you think was a bit negative, you should see how I type when I take my rose colored glasses off.

Here's another vote for staying away from the tract (not 'track') house in a development that's only in its early stages. And a vote for buying used.

The new development may never be built out or it may take many years to be built out. If there's yet more land 'out yonder', whatever is being built both within this development and out there will drive down the appeal and price of your tract house when you want to sell.

Development homes can be a little like cars. As soon as one is 'used' its value declines (if there are more in the pipeline).

You haven't said anything about location, that big, big, biggie on this forum. Or job stability. Or schools. Maybe a tract home IS your only choice for the space you want.

Do you really think you'd be in this next house for 15 of the most vital years of your family life?

Thank you so much for all the responses!

Solie We do intend to stay put for at least a year. Currently, we have a 3 bedroom home with 3 children (2 share a bedroom). I figure the baby can room with me and Dad for at least the first year. Also, we dont want to be in phase 1 of this neighborhood. We have a friend on the city council there, and hes given us the inside scoop on which phases will have which parks, community pools, t-ball fields, etc. So we are going to wait on another phase to get started.

Ncamy I hate to admit it, but Im a perfectionist. Im also 25. Im sure my dream house now would not measure up to my dream house 20 years from now. When I think about building a custom home someday, I intend to find the perfect spot (possibly on a lake), spend a year with an architect making it perfect, and then another year picking everything out.before ever looking for a GC.

Oruboris Thank you so much for the tip about going on a windy day! Weve never visited them in bad weather.

Sue Weve looked at some used McMansions, and we are considering that option. The main reason weve picked Arlington is b/c its close to where I work, close to family in Jackson, and the schools are excellent. But most newer houses in Arlington are either on huge estate lots or are zero lot line. We picked this development b/c of the medium sized yards and lots of parks.

Bungeeii The market conditions in the Memphis metro area are actually weathering the storm quite well. In my current neighborhood, weve had 17 homes sell so far this year. And most of the home values are actually increasing in value. A co-worker built a house in Arlington (where wed like to live) on a zero lot line for $120 per sq ft, then turned around and sold it this year (a year and a half later) for almost $145 sq ft.

Chisue Its all about location! Where I live now (downtown Memphis) is a GREAT location for young professionals or retirees. Youre near everything thats happening, and dont need to be concerned about the HORRIBLE public schools in Memphis. But for those with children (and weve got plenty), sending your children to private schools (normally about $20,000 a pop in this area) makes moving to the county and commuting the thing to do. Arlington (where wed like to move) is BOOMING right now! Their schools are the best around and the city has done an excellent job in planning. (Example: NO section 8 housing allowed. NO Wal-Mart. Limited number of apartment complexes.) And yes, I really do think well be here for the long haul. My husband and I both have very stable jobs in stable industries, and all our family is in this area.

Jrldh I agree that its good for children to share space. We have two that are close in age, and they do share a room. I dont want a new house for the formal living room or dining room. Even though tile in the bathrooms is standard, I wont be putting it in the kids bathrooms. Id much rather spend my Saturdays with my children instead of scrubbing grout. Im not interested in keeping up with the Jones. But my husband and I REALLY enjoy our children. Our current yard is too small for my husband to kick a soccer ball around with our oldest. Our current living room isnt quite big enough for our family of 5 (soon to be 6) to make a big pallet in the floor for movie nights. And there are no parks within walking or bike riding distance.

I like all your points about Arlington! (That's a town, right, not just a development?) I especially like the short commute and proximity to family. What good is a home if you're never IN it -- or if you can't get AWAY from it once in a while? (Grandma babysits.)

From a financial standpoint, though, I would prefer buying a existing to buying new -- if it's a McMansion. I understand that your family needs more ROOM and needs it NOW! LOL Have you looked (with a Realtor) at existing houses that are NOT tract homes or McMansions?

Hey, I love McMansions!

If I was actually fortunate enough to be buying right now, I'd be looking at foreclosures first, to be honest. If I were buying a new tract home, I'd consider the builder's list price to be a starting point for negotiations, not a "take it or leave" like it used to be.

It sounds like you found a nice neighborhood in a great location for your family!

Coming from Southern California (we just moved to UT where we're now building our dream home) we're totally used to tract homes. That's what the new construction is out there! We bought our first house when I was 27, traded up to what I guess is the McMansion when I was 31. Our first house was used, our second was brand new in a brand new neighborhood.

There is definitely something to be said about the brand new neighborhoods - "tract" or not - McMansion or not - it's like your first semester at a college dorm - EVERYONE is friendly and trying to make friends because EVERYONE is new.

Even though our "used" first home was a smaller / starter type home, it was about 10 years old and most of the neighbors have been there since the beginning. My daughter was only 8 mos old when we moved in and my son was born 2 years later. Our kids had no playmates on the street since the neighbors were a bit older. I think dh and I were the youngest on the block.

Fast forward a few years to our brand new "tract" home and there were playmates EVERYWHERE. We just had more in common with the neighbors - similar professions, income levels, kids were the same ages, someone was always pregnant, and it was just a more friendly neighborhood with plenty of block parties, birthday parties, bunco parties...etc.

There's more to choosing a home than just "is it a good investment?" Absolutely...that's a huge factor...but if you're going to live in it for a while...say 5+ years...I think you'll be fine - esp. if it's still in the very early phases.

But for me...it's also about LIFESTYLE...your kids are still probably really little but let me tell ya...if you think toddlerhood and babyhood is busy, wait until they get into school and ACTIVITIES! You'll be so grateful to have neighbors you can carpool with because your same-age daughters or sons are on the same soccer team / dance class / school class, etc!

We're now 36 and 37 and our custom dream build is in a more established neighborhood...both of our neighbors are senior citizens - super sweet empty -nester couples - but not what we had in California. We have made lots of really good friends in the neighborhood - but guess where they all live...in the tract housing just a little ways up the hill.

So, while this isn't the popular word of advice on this thread...I say, if you really like the homes, the neighborhood, the schools...buy the house you want and have a blast picking out the finishes!

Wow Kaydles, I was seriously going to write a post exactly like you just did.

Coming from years of living in tract homes, I loved them all. But then I am a new house kinda girl. I just love picking everything out myself and not buying what someone else has chosen. Since we were in each house for short amounts of time, building a dream home wasn't right for us. In all the areas we have lived, tract housing was common and not necessarily subpar quality either. What Kaydles has said about neighborhoods was true for us too. My favorite neighborhood by far was the one we just left in San Diego. It was similar to what you are describing with 4 different builders and 4 levels of pricing. In the end, I think it was over 300 homes total with walking trails and a park. It was beautiful and I've never had such a strong support group of other families around me like that. We had play groups and Bunco night and festivals. I didn't have family near me so it was a Godsend to be able to call upon one of my neighbors to take the kids if I needed help.

I disagree with you about not getting in on the first phase though. The earlier you can get in, the better you will do upon resale. Even in this crappy market in San Diego, the ones who bought in the first phase are still making quite a good amount when they sell. The ones who got the last phase are losing some money right now. And I wholeheartedly agree with Cheifneil on negotiating, this is sure the right time to get a better deal.

As to your question on how you make sure you are getting good quality. I would research each of those builders online. See if there are any complaints against them. We also went to the job site often and if we saw something that looked shoddy, we spoke up right away. Also, make sure you really go over every detail on the walk through and before your one year warranty expires. Make them fix everything that bugs you.

I love the sound of your area and I think this is a good decision...but again, I'm a new house person who doesn't like resales.

Good Luck!
Lindy

Of the choices you've asked about, I would go with builder C. A good floor plan is so much more important than finishes - which will probably be changed out in 10 years or so as fashons change anyway.