weed30, this is exactly what we did! We still had an existing mortgage on the old property, but even torn down, the land our old house was on was worth more than our outstanding mortgage. Our bank was AWESOME working with us on our construction mortgage and we are only a couple weeks out from being done. Basically, what was involved was opening a line of credit and getting an initial appraisal (the bank does this). Then we got pre-approved for the new mortgage, and the old mortgage is rolled over into the new one. We used our line of credit to pay sub-trades (my DH was GC) and the appraiser comes out at 4 separate stages during your build. He assesses your completion rate and the bank forwards however much money that represents from your total approved mortgage to your Trustee. You then pay off the line of credit, usually with some left over, and you start over again until the next appraisal period. It's been a very easy process, so I hope you go for it! Lora

"One of the model homes" In my area, model homes are for tract builders. Tract builders have different economies than single lot builders. There are exceptions to this model but generally it is true. It isn't that teardown, permits etc cost that much (in my area), it is just that you are building on a single lot. There is also the reality that the single lot may have rules that developers don't have that add to cost. As someone who has done both, I will share some costs. We bought a $400k tear down that was 1800 sqft brick 2 story with carport. It cost $12k to teardown and haul away. We had to spend about $5k for some tree removal. The utility hook ups are inexpensive since they are already there - an empty lot is significantly more. Permitting is $3k which is inexpensive - what isn't is that it has taken 6 months and we still don't have permits. Surveys can be $5k - we have to modify lots when we tear down because the rules have changed so much since they were platted. There is water mitigation that can cost $15k for engineering and execution. Developments don't cost much more for the entire development. And then lastly, we expect $180 a sqft for the actual build. Spec houses in our neighborhood are about $1.2M for similar lots, 4500 sqft. We will build a little smaller but that doesn't help on costs that much. This is in Raleigh, an area with (usually) significantly lower costs than NoVa. No one in my area builds a "model home" on a single lot for $300-$400k at 3000 sqft. That being said, there are ways of getting cheaper homes built - ie modular - but that may not be an option depending on the jurisdiction.

That's quite a hike from the sink to the cook top. Also it appears with the current layout that the cooktop is outside the kitchen. I would think through as you are cooking in your current home what steps you go through and how that would work in this design. Most prep work is done near the sink and then taken to the stove. How far are you willing to carry that? Also you often start with taking things out of the fridge and pantry and take it to the sink for prepping. How far are you willing to walk back and forth to get everything you need? If step count and getting exercise is your goal then this might work for you, but I think for everyday use you will find it inefficient. It looks good though.

house designs meeting the above requirements