When you are ready to settle down in a house of your own, there are three traditional options for everyone. First, you can inherit a house (not an option for most home seekers). Second, you can buy an existing home. Third, you can invest in a plot of land and arrange to have a new house built.
That third option is looking particularly attractive at the moment. Several factors in the regional housing market have combined to make it difficult to buy an existing home. Building a house, however, has become an increasingly viable option, especially for home seekers who can afford to wait, research what they want in a home, and make long-term plans for their future. Here are the main reasons why this option is particularly strong at the moment.
Costs with a Seller’s Market
A seller’s market, which we are currently in, refers to a market where demand is high and supply is somewhat limited. If you remember from economics, this creates a situation where sellers benefit because they can easily raise prices and still sell their goods, since buyers have little choice in the matter. This is especially true in real estate, where inventory tends to be much more specialized and limited.
The result is the rise of home prices, and in many cases, buyers may be forced to pay more for a house than it’s worth once the market stabilizes again. This is a situation you should avoid at all costs! Building a home can help buyers bypass this seller’s market dilemma.
The Problem of Timing and Demand
Something else happens when supply is low and demand is high — people have trouble finding houses in time. We’re currently seeing a market where attractive, mid-range homes only last for a few days on the market before being sold, often due to an agent already knowing about an interested buyer who purchases the property even before a sign can go up.
This is a poor situation for many buyers, and another reason to consider looking for a plot of land and building a customized home instead.
The Power of Customization
A positive reason for building your own house is the customization options available. Your house may be restricted by budget, the size of the property, and utilities, but between these considerations, you have many options to decide on the shape, the rooms, where you want windows, what shape you want the backyard to be, the number of levels, and so much more. Many buyers find that this makes up for the waiting, planning, and relocation that building a home requires.
Locking in Loans
A construction loan is a very important part of the home-building process. Since construction loan rates are expected to continue to rise into the future, one of your first steps should be to lock in a healthy construction loan rate for your home plans. The trend favors fast action, but remember to be careful when finding the right contractor to build your dream house!
Are you ready to build the home of your dreams? At Hannah Custom Homes & Remodeling, we can help! Contact us today to learn how to get started.