If you’ve been searching for a new home this year I’m certain you’ve noticed it’s a seller’s market. Sellers are getting multiple offers and as a buyer, it can get frustrating if you’ve had offers rejected. Another common frustration that I see while touring homes with clients is the amount of work that they’d likely need to put into the property to make it better fit their style. Paint, fixtures, updated flooring… are these projects that you’d like to take on after purchasing? Perhaps you’d be better off building a brand new home? Let’s cover some of the pros and cons of buying vs building in Summit and Park County.
Cheaper to Build or Buy?
In a seller’s market, you might assume it is less expensive to build a home than to purchase an existing one. And if you’re looking only at the dollar amount this could be a determining factor in deciding whether to build or buy. But due to the coronavirus pandemic, building materials, such as lumber and metal products, have increased in price and have been in limited supply. This drives up the cost to build and could extend the timeline if builders are not able to ensure supplies are delivered on time. Building a new home can be a costly and time-consuming venture. In addition, you’re still required to find a loan, pay for permits and hire a contractor. Another consideration is the fact that a construction loan will oftentimes have a higher interest rate than a conventional mortgage.
How Long Does it Take to Build a Home?
If time is not an issue for you, building a new, custom home could be exactly what you’re looking for. But if you’re on a tight timeline this could take this option off the table altogether. According to a 2019 U.S. Census Bureau report, it takes an average of seven months to build a house. Locally, with our seasonal weather, it takes 12-16 months to build a new home. Keep in mind, if you’re working with an architect as well you will need to expand the ore planning timeline by up to four months. It’s important to know there could be missed deadlines or materials on backorder. This can all extend the completion of construction on your dream home.
Buying a Home and Adding Personal Touches
If building a new home seems like a daunting task or if you need to be into your new home in three to six months it’s probably best to buy a previously built home. If you’re shopping for a second home you might want to consider buying something fully furnished. It’s important to remember not to get too hung up on the small stuff while touring homes. If you’re not finding exactly what you’re looking for don’t forget that you can easily add personal touches with fresh paint, fixtures, and landscaping. What’s most important is finding a home in the location you prefer with the amenities close by that you want.
How Can We Help?
We hope that you’ve found this information useful. And if you need buying or selling guidance or help in the Summit or Park County area please reach out! We will also continue to provide you with relevant and up-to-date information here on our blog.
If you would like more information on how the Summit and Park County real estate market is doing, you can also sign up for our detailed monthly market report by clicking this link.
Best Regards,
Scott & Anne Lindblom
Broker Associates
[email protected]
[email protected]
Scott: 970-485-4065
Anne: 608-345-2734
www.LindblomGroupe.com