Should you build your home, or should you buy an existing home? If you’re trying to figure out which path to take, Berkshire Hathaway HomeServices Indiana Realty Trusted Advisor Erin Hundley says there are a number of things to consider when you’re determining how to invest in your future. “First, consider the time frame,” Hundley said. “Do you have time to build? Also, determine what is important to you in a community? And, what expectations do you have as it relates to finish, floor plan, and overall design.”
The time of a home building process can vary, but Hundley says it will generally take about six months form the time you determine the location, and home plan you want to build, plus put down an initial deposit with paperwork. “Once these decisions have been made, your selections for all of your finishes must be made, prints must be drawn and permits ordered before construction can start on the home. Once construction starts, you will meet your construction superintendent & there will be pre-determined meetings at different stages of construction for you to walk your home with them. Prior to closing on the home, you will have an orientation and ensure everything is 100%. At this time, you will also learn more about your builder's warranty process,” Hundley said.
The cost of building a new home typically comes at a premium, because you are driving the decisions of everything in the home. “You have the opportunity to make all of the selections in the home which you cannot do in an existing home,” Hundley said. Because everything is new, you will also have a warranty on everything that has been installed. It’s also more expensive to build, because of the cost of land. “The cost of land is also driving up pricing, in addition to zoning requirements that builders must abide to depending on location,” Hundley said.
Berkshire Hathaway HomeServices Indiana Realty Trusted Advisor can guide you through the process of building, a process that can be complicated. “Lots of decisions will need to be made & our job is to help simplify and also educate on what items may be important to protect your investment in the long term,” Hundley said. “We will guide you through every step and will be another set of eyes as the home is being built for you.”
If you are thinking of building, but can’t wait for the building process, Hundley says there are options. “There are many brand new homes that you can purchase without taking the time to build from the ground up. Many builders in the area build spec homes - or commonly called market or showcase homes - to allow for buyers to get the advantages of a new home without the wait.”
First time home-buyers are also eligible to build a home, because the same loan requirements and options are in place regardless of the home being build brand new vs. existing.