What Combination Is Right For You and How To Figure It Out
THE CURRENT MARKET CLIMATE
AND HOW TO TAKE YOUR CONSUMER TEMPERATURE
The COVID-19 pandemic has had a lasting impact on all of us and as NYS goes onto phase 2 of reopening we are finding ways to adjust to a new normal. This time “on pause” did have some silver linings in that people have re-evaluated their priorities and many have made determinations about what is important and what isn’t. Many no longer want to put their dreams on hold. These are all deeply personal decisions.
Building a home versus buying a home has also always been highly individualized. But now people have been cooped up in their houses for the last three months and that is a lot of time to think and look around at all of the things you either love about your house or perhaps things you don’t like. You’re left with multiple combinations of three options: You can do nothing about it, fix what you have by redesigning certain elements or you can walk away from it altogether and buy or build a new home. But chances are you are going to need to do some upgrades to get the price you want for your home either way.
Real estate is the best investment you can make in your lifetime regardless of whether building a new home or purchasing an existing home. Interest rates are at an all time low and it is a good time to secure financing for building, buying or upgrading a home. It is also a seller’s market but during a time when there is very low inventory on the market, people find themselves settling for homes that did not meet all of the items on their wish list. But when you build a home you get to create your wish list and you get to decide exactly what stays and goes based on your budget, not what just happens to come with an existing home.
To build or not to build, that is the question.
Here are some questions to consider when making a determination:
1. Can I get the financing to build a home?
2. Can I secure property in a location I desire?
3. Can I find an experienced builder with a good reputation who know building codes and can get my plans approved while seeing my project through from inception to completion?
4. Am I in a hurry to move? If so, building may not be ideal for you.
5. Have I contemplated building a new home for more than a few years? If yes, then you are a good candidate.
6. Do I enjoy expressing my unique taste and having things that are different than anyone else’s? Then building will probably be ideal for you.
HOW TO SPOT AN IDEAL BUILDER
Once you have made the determination to buy and have been conditionally approved for financing, then you can look for your ideal builder. Typically, an ideal builder would be based in the area you want to build in and would also be able to produce the architectural plans. You also should consider a builder who can locate and secure property for you. Some builders can also assist with securing financing. Therefore, it’s really important to get comprehensive designs that a bank will approve. Only then can a timeline for completion be established. Once you choose your builder, then you can create a design that is a collaboration of your ideas, aesthetic inclinations and wish list combined with the builder’s experience and knowledge. Many builders have affiliations or own their own showrooms where you can sample materials and work directly with a designer. From that timeline you can determine what will be an ideal time to list and sell your current home. An experienced builder and remodeler will also be able to help you make any evaluations about what upgrades to complete on your current home to get the most money without going over market value which you can’t recapture in the sale price. In other words, you don’t want to lose money on the upgrades you do to get more for your home. A cost/benefit analysis should be developed with the guidance of your builder and realtor. Ideally find a builder who has a real estate company as well. The more services that a builder can provide, the easier it is for you to have a smooth and stress-free experience.
Best of luck to you with your research and decision making process!
