Homebuying 101: To Buy or Build? Questions to Ask
July 13, 2022
In today’s economy, finding a new home you love can be challenging. You might ask yourself, Can I see myself here for the next five years? Does this place feel like home? Does this space “work” for my family and me?
It can also be tempting to think outside the box. Perhaps you’re wondering, “Should I buy or build?”
According to newly released stats on realtor.com, the median price for building a single-family home is just shy of $297,000, for an average-sized house of approximately 2,590 square feet, making the price per square foot around $115.
However, due to various supply chain issues caused by the pandemic response, Americans can expect a sizable premium of around $35,000 for new construction materials, raising the national average cost of building a home to $332,000.
While this might appear high, the median price for buying an existing home has gone up recently as well, nearing $447,000, which is an 18% increase from last year and up 35% from May 2020.
This begs the question, is it better to buy or build? Recently, Dallas-based twins Chris and Calvin LaMont from the TV show, Buy It or Build It, shared their perspectives and best advice for people trying to decide what to do.
Chris LaMont points to a few key questions to ask anyone who’s thinking about buying an existing home:
What location do you want to live in, and what’s your price point?
How much work would you want to do on a remodel, compared to how much the price is in your neighborhood?
For new construction, some factors to consider might include:
How much time will I have? And where will I be, and where can I live in the meantime?
What scenario seems manageable if the builders need more time while we build or remodel?
His brother Calvin noted that either way, buyers should line up their financing and understand the terms of any loan they pursue. That will determine how much cash to put down for a down payment, how much one can afford to buy, and what type of a lot to get. Much of what’s needed to help prepare can come from the lender and the loan on a new-construction build. So Calvin suggests talking to mortgage lenders and broker companies to see how the process unfolds.
To hear more of Chris and Calvin LaMont’s story, read it here.
Whether you’re considering a move into a new home or need storage space, locally or even across the country, Beltmann Moving and Storage is here to help you plan a stress-free move. Contact us today, to start the conversation or get a free quote.
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