Buying vs. Building

The price per square foot to build or buy is growing substantially by the month it seems. The only thing that is really helping the market is the low interest rates on mortgage loans and we don’t really know how long that may last. With that being said you are always faced with the ever intriguing question “Do I buy or build?”

I think it ultimately comes down to where you are in life. If you are a first time homebuyer my suggestion would be to buy. Most builders today are selling what is known as spec homes. These are homes that the builder has built on a lot that he owns and puts the house for sale. Usually the price per square foot is compatible with the industry and most times you get a really nice house for a reasonable price. 

Production built homes such as DSLD Homes and DR Horton may be the option for you. See the blog post on Production Building vs. Custom Home Builders for more information on this. 

If you feel that a new home is not for you. Then buy an older home that can be easily renovated and gain some equity, live in it for a couple years and put it on the market and use that equity to build your dream home. 

If you are looking to build, figure out a budget that you can afford. There are a plethora of mortgage calculators online that can help with making that decision. Consult with a builder, if you are in need of one I know a good one whose information can be found under the contact tab on this website. Don’t be afraid to ask questions even if you feel like they are stupid questions. The more information you have the better off you are. Don’t make any assumptions when it comes to hiring a builder. Know exactly what you are contracting him or her for. 

See the blog post on Dealing With Contractors for more information.