Determining whether to build a home or purchase an existing home may seem like a simple decision. Yet, in fact, there are many more factors to consider. Weighing a list of wants with your current budget and knowing all the facts are key in making this personal and very important life decision.
Questions such as these below are items to consider when looking to build or buy an existing home:
- What is the difference in building or buying an existing home?
- What are the costs involved?
- What are the loan products available?
- How do we pick a home site?
- Which builder should I choose?
- Do I have to pull permits?
- What choices do I have to make?
- Who covers the insurance while it is being built?
- How will I know what is going on if I live out of the area?
- Do I get a warranty?
- Who provides the home plans?
- What if I want to make a change while it is under construction?
- What are the benefits to buying an existing home?
- How long will it all take?
- Does the community have an Architectural Review Committee?
- Can our marriage handle building a new home?
- Who gets the lot ready to build?
- Will I sign a contract with a builder?
- Is Landscaping included?
- Can I incorporate Green/Energy saving materials into the build?
These are all questions with answers that vary with the builder, area, size of the home, and preferences of the buyer.
Building a home can be a fun process, but it’s not for everyone. Loan products generally call for 20% down (20% total-house and lot). It generally takes 6 months to a year to complete. There are many selections to choose from when picking cabinets, appliances, colors, siding, shingles etc, which takes time, coordination, and can often benefit from expert opinion.
The advantages to buying an existing home include closing, usually, within 35 days, move right in, and loans that require less money down. The advantages to buying a lot and building a home include a warranty, minimal maintenance for the first 5-10 years, designing the home exactly to fit your needs, and generally a higher resale.
The best measure for a builder that I have found is the relationship that a builder has with his clients after the project is finished. If a builder has a positive relationship with a good percentage of his past clients it shows to me that he finishes well and that everyone has a positive experience when dealing with them.
Please feel free to print the above list of questions. As a Realtor, I have had the pleasure to help several clients buy lots, coordinate with a builder, and assist them through the entire project. From 1100 sq ft Beach Box style homes to 9,000 sq ft rental machines, no project is too small or too big. We can assist you in making your dreams into reality.
Remodels can be an option too. There are many construction to permanent type loan products available which allow you to buy a home that needs updating. You and the lender can formulate a plan for the scope of the work, coordinate with a contractor, and the work begins immediately after closing.
We have several builders that we have worked with over the years, don’t hesitate to contact me, let my years of experience go to work for you.
Pete Salitore, Associate Broker
petesalitore@gmail.com
252-202-4868
Buying a home is most likely the largest investment I’ll ever make and where I’ll spend most of my time. It makes sense to me to build my own home and customize it to my needs. Like you mentioned, it also has a higher resale as well.