Beat High Housing Prices by Building Your Own Home
Buying a pre-existing home can be more expensive than having your own home built from scratch. When you buy a pre-existing home, there is also something about the home you would change, and unless it is brand new, the seller has an expectation to make a major profit off of the home. If the seller bought the home right before the housing bubble, they may even overprice their home.
Its a very tricky market, and house prices are on the rise yet again. But, you can negate the high cost of home prices by building your own home. While this is a timely endeavor, its an avenue that is worth considering when you want your dream home without the exceptionally high price point attached.
Understanding Current Market Conditions
Just three short years ago in 2012, the housing market had such low prices that building your own home would either provide a very small benefit in terms of cost, or be more expensive than buying an already built home. Most economists stated that the only benefit at the time was the ability to customize your home, and believed building was more expensive.
Current Home ValuesTrulia provides in-depth statistics for the average home price based on listing, sale price and state. Youll need to consider the state you live in to determine the viability of building a home. You may find that the average listing in New York is currently $461,556 with the median sale price being $420,000. These are very high prices due to the high cost in and around New York City.
If you planned on living in Buffalo or north New York, you would be able to buy an exceptionally large home for this price.
The U.S. Census provides us with information as recent as August 2015 with the median new home price being $292,700 and the average home price being $353,400. This includes the land as well as the actual home itself. But, new homes are always more costly. Zillow also provides data through August 2015 that shows the median home value in the country is $180,800; an increase of 3.3% over the past year.
Cost to Build
The cost to build a new home varies so greatly that its impossible to provide an accurate figure. Why? There is a lot that needs to be considered:
* Land: How much will the land in the area cost? You can find a nice lot in Florida for sale for a few thousand dollars, while you may spend $40,000 an acre in other parts of the country.
* Price per Sq. ft.: The average home will be priced per square foot and will cost between $100 and $150 a sq. ft. on average. In this case, youre likely to spend $100,000 - $150,000 per 1,000 square feet of living space.
* Fixtures: Home prices vary drastically based on fixtures. You may spend $5,000 more to have marble countertops throughout the home instead of granite. Or, you may choose $2,000 toilets instead of $200 toilets, so these extras do cost more.
And, location will further dictate the price. Builders in rural areas may charge less than in-demand builders in populated cities. All of this needs to be taken into account.
But, you also have the option of modular homes that are built in a factory and assembled on-site. When you have your own home built, there are several benefits:
* You choose everything from the materials used for flooring to your design layout.
* The land you choose will be exactly what you want in terms of acreage and features.
* The home will be new and still under warranty.
Ive found that the biggest advantage when building a home is not realized when the home is built on a smaller lot. In fact, if youre building a home on a lot that is less than .5 acres, youll likely pay more to build your home than buy a pre-existing home.
But, if you buy a lot of acreage, youll be able to save a ton of money. Most homes that have several acres of land will have their price increased dramatically. And, if you can buy the land for a major discount, youll walk away from the home building process with a lot of money in your pocket.
Considerations Before Building a Home
The dream of building your own home does come with a lot of other aspects that need to be considered:
Financing: It will be more difficult to find financing to build the home. You will likely need to provide a bigger down payment to the lender.
Builders: Visit several builders to get an estimate on your homes price. Youll find different builders have dramatically different pricing. And, you also want to make sure you choose a reputable builder and not a fly-by-night operation.
Land Preparation: Youll need to clear the lot before building can begin. This can cost several thousands of dollars depending on how wooded the lot is. Youll also need to have the foundation poured, which can range from $1,500 to $20,000. The average cost is $7,775, with most people spending $4,200 - $11,700 on foundation costs. This data is based on 300 cost profiles.
If youre planning to build in under-developed areas, you may also find builders that offer substantial discounts on homes. This will allow you to have your home built for a much lower price. But, be warned that initial estimates almost always outweigh the true cost of the home. It all comes down to the builder and your fixture choices.
If constructed properly, youll be able to ensure energy efficiency and quality in your homes construction. This can also result in a much lower home price.
Before you buy in an expensive market, look at the cost of land and see if building your own home may be cheaper. If you can purchase a large lot for cheap, youll often save tens of thousands of dollars having your own home built instead of buying a pre-existing home on an equivalent lot.
LandCentury.com specializes in selling wholesale real estate at the lowest prices. We believe that everyone should have the right and the opportunity to get a great deal on investment property All you have to do to get the property you’ve always wanted is follow these simple steps:
Step 1: Find the Perfect Property
Use LandCentury.com’s powerful network of real estate listings to find the property of your dreams. We have everything from move-in ready investment properties and cheap houses to rural land, buildable lots, and fixer-uppers. No matter what type of real estate you’re looking for, you can find it at LandCentury.com
Step 2: Click the Buy Button
This will start the purchase process. As one of America’s top online property listing sites, we leverage our unique business model of submitting an online payment to hold the listing to make transactions straightforward and secure. Our purchase process is designed for simplicity and security. Once you click the buy button, you will:
Use our secure site to submit your processing fee. We make every effort to protect your privacy. That’s one of the reasons why we offer a 24-hour money back guarantee on your processing fee, so you can feel confident in your transaction.
The seller will contact you within the next 24 hours procced to the next step and get the necessary info to prepare the contract.
Buyer Transaction & Privacy Protection
LandCentury.com stands behind our buyers, and we want you to know that your hard earned money is safe when doing business through us. That’s why we have a number of features to help protect buyers, including:
Symantec Secure Site SSL certificate, providing a $1,500,000 warranty on every transaction
Secure encryption and data protection
24 hour money back guarantee on processing fees
2 separate legal offices across the country to help you with any problems you encounter, anytime
Seller ratings so you can see what other people have to say about their experience with your seller
Still Have Questions?
We’d love to answer them. Check out our Help Center page or call us at 1-888-LAND-WEB (526-3932)
Our highly specialized support team is ready to find a solution to your problem. A people first policy insures that a team member will always be available to speak with you personally.
Symantec SSL Certificate
Symantec is a global leader in providing security, information management solutions to help our customers – from consumers and small businesses to the largest global organizations – secure and manage their information against more risks at more points, more completely and efficiently than any other company. Our company’s unique focus is to eliminate risks to information, technology and processes independent of the device, platform, interaction or location.
This website can secure your private information using a SSL Certificate. Information exchanged with any address beginning with https is encrypted using SSL before transmission. LandCentury.Com LLC has been verified as the owner or operator of the website located at www.LandCentury.com. Official records confirm LandCentury.Com LLC as a valid business.
Better Business Bureau
For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2015, people turned to BBB more than 172 million times for BBB Business Reviews on more than 5.3 million businesses and Charity Reports on 11,000 charities, all available for free at www.bbb.org. The Council of Better Business Bureaus is the umbrella organization for the local, independent BBBs in the United States, Canada and Mexico, as well as home to its national and international programs on dispute resolution, advertising review, and industry self-regulation.
BBB has determined that LandCentury.Com, LLC meets BBB accreditation standards, which include a commitment to make a good faith effort to resolve any consumer complaints. BBB Accredited Businesses pay a fee for accreditation review/monitoring and for support of BBB services to the public. BBB accreditation does not mean that the business’ products or services have been evaluated or endorsed by BBB, or that BBB has made a determination as to the business’ product quality or competency in performing services.
Web Site Anti-Malware Scan
GeoTrust is the world’s second largest digital certificate provider. More than 100,000 customers in over 150 countries trust GeoTrust to secure online transactions and conduct business over the Internet. Our range of digital certificate and trust products enable organizations of all sizes to maximize the security of their digital transactions cost-effectively.
The GeoTrust Web Site Anti-Malware Scan includes a daily malware scan to detect malware and alert you with detailed information to respond quickly to the attack. What happens if malware is detected on this web site? If malware is discovered, the GeoTrust Web Site Anti-Malware Seal no longer displays. When the scan confirms that all instances of malware are removed, the seal displays again.
If you feel that you have been a victim of real estate fraud, there are many resources available for you as the victim. Your first step is to contact the local District Attorney’s office and report the incident. Our office will stand by you and provide any relevant information to support your claim. Here are additional agencies that can assist you and provide more resources: