Vacant land has been selling at lower prices than the past, and many home buyers are considering building their dream home. The conflict arises from a few factors; cost, time, and convenience. In this post we will shortly talk about how each of these factors play a part in your decision and how to come to a final conclusion.
1) Cost: Everyone wants to build a home that is perfect for them, but if that is the case, why doesn't everyone? Perhaps the largest deterrent to building a home is the difference in cost. Building a home has a higher total cost at face value, and the building process has many hidden costs that many buyers don't expect. These hidden costs come in many forms, from defects such as siding falling off the home, the cost of landscaping, the cost of upgrades like granite countertops, and the uncertainty of home development around many available lots. These factors can burn many buyers by blindsiding them with large expenses. At the same time, purchasing a home is not always the cheap route. In many instances, cheap homes are cheap, meaning they may look nice and be priced low, but have big budget repairs that are not easily identifiable. It is hugely important to find a good agent who can guide you in your home search to find a home that has a newer roof, siding, gutters, windows, or flooring. These are all costs that can sneak up on home buyers. All things considered, many homes on the market are in prime condition and are priced well below a new build, we would just suggest finding some help for your home search.
2) Time: Purchasing an existing home is a fairly streamlined process, with a perfect deal taking around 30 days. Home building on the other hand is a longer process with an unpredictable timeline. Making a construction contract with a deadline is sure to help, but is not a total solution. While building a home takes a bit over half a year on average, keeping in constant communications with your builder will ensure that you are both on the same page, and timeline.
3) Convenience: Purchasing a home has its bonuses over building, convenience being one of them. Multiple factors come into play here so buckle in. First is location. Many buyers know where they want to live, and in many cases, the best places have already been built on. So many times new home builders settle on location in order to have their perfect home, and for many that is the right decision. For buyers who want to live in a specific subdivision, the best lots will almost always be taken. Granted, there will still be great lots in many areas, but the land will be sold at a premium. The easiest way to get the perfect location is to find your way into an existing home in that location.
4) Customization: While purchasing a home is faster, cheaper, and (sometimes) more convenient, you will never be able to pick EXACTLY how you want the home to look. Working with a builder to ensure that your new home is perfect is extremely rewarding. Being able to make every decision in your homes development is the number one bonus with building a house. To circle back to cost, in many cases the perfect home is an expensive one, but in many ways is worth it for some buyers. It is important to note, a well made house in a great location may be expensive, but you can be assured it is not a bad investment. Resale for a home that is in good condition a good location will be fruitful for many home owners, the only downside would be assuring that the home will be resold. To be certain a home will sell after building, you have to keep in mind that you will not be the only one buying the home. No matter how much of an elephant lover you are, if you build the perfect elephant shaped archway on your front porch, you will be turning off a great deal of buyers.
5) Deterioration: Homes age, and with age comes repairs. New builds are great for the fact that you will not be replacing windows, flooring, or repainting due to the fact that they are all brand new and in excellent condition. I would never suggest that your new home will have no upkeep, because if you ignore your siding, furnace, or roof for too long, it will not live a full life. Purchasing a home has a different dynamic where you have to be certain that necessary repairs will fit into your budget. New roofs, replacing a deck, or installing new windows are not cheap endeavors, but need to be done eventually. The nice thing about purchasing an older home is that the time and effort you put into repairs, the more valuable the home is. There is a reason Fixer Upper has been on TV for five years, if you are not afraid of putting some "sweat equity" into a home, you can see the returns come selling time.
Overall, there are many factors that come into play when deciding whether to buy or build your new home. Luckily you are never on your own when it comes to making the decision. There are countless resources online that can help you make the right decision. If you want to talk to an expert the DeKroub Team is always willing to lend a helping hand in your decision making process. Be sure to be smart and do your research!