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Answers (6)
Best Answer
- ConnieK_Oklahoma
- Contributions:2899
it comes down to how long you plan to stay not so much how long the builder will be there. the builder is going to give you a 1 year warranty.
take a look at the sqft price difference between a custom build and a resale and then consider that even if housing market doesn't appreciate or depreciate for the next 5-10 years- if you were relocating again and needed to sell you'd be selling it at Resale price- will that be a loss for you, most likely it would- I have a friend that did a custom build upon moving here, lived there for 5 years and realized because of traffic and schools etc, it isn't where he wants to be now. prices have not dropped here like the rest of the nation but he paid too much for that house in the first place (I didn't know him yet) and I couldn't list it for what he owes on it even if there was no commission or closing costs- so he is staying there longer than he wants. nothign wrong with the house, it's fantastic but that's often not the only reason to move and some of the special things that he had done to the house which drove up the cost have absolutely no value to potential customers looking at resales- they aren't going to pay more for those things in a resale when they could build or do it themselves at some later date.
if you intend to stay there for 30 years...then getting exactly what you want if you can afford it is worth something. The question is....do you know with any degree of certainty that the location is where you want to be long term.
take a look at the sqft price difference between a custom build and a resale and then consider that even if housing market doesn't appreciate or depreciate for the next 5-10 years- if you were relocating again and needed to sell you'd be selling it at Resale price- will that be a loss for you, most likely it would- I have a friend that did a custom build upon moving here, lived there for 5 years and realized because of traffic and schools etc, it isn't where he wants to be now. prices have not dropped here like the rest of the nation but he paid too much for that house in the first place (I didn't know him yet) and I couldn't list it for what he owes on it even if there was no commission or closing costs- so he is staying there longer than he wants. nothign wrong with the house, it's fantastic but that's often not the only reason to move and some of the special things that he had done to the house which drove up the cost have absolutely no value to potential customers looking at resales- they aren't going to pay more for those things in a resale when they could build or do it themselves at some later date.
if you intend to stay there for 30 years...then getting exactly what you want if you can afford it is worth something. The question is....do you know with any degree of certainty that the location is where you want to be long term.
- sunnyview
- Contributions:25139
You say that new homes in your area are less than existing homes. How much do new homes run per square foot in the same elementary school area as an existing home would?
In my area and many others that I follow, new construction even with incentives cost more on the purchase than existing so I am interested in how it is is your area.
In my area and many others that I follow, new construction even with incentives cost more on the purchase than existing so I am interested in how it is is your area.
- Damon Williamson, "RealtorDamon PRO"
- Contributions:165
I specialize with new homes and I dont agree with some of the answers here. New can easily be less than the pre-owned. If you are thinking about building a new home or buying one their spec homes then have your agent do the research to determine the best course of action. If the builder wants to sell a house then you can name your terms. Most of the time they will work with what you are asking/needing.
If you need any help with your home search please contact me, I work in Little Elm, Frisco, Allen, Mckinney area daily. Thank you
If you need any help with your home search please contact me, I work in Little Elm, Frisco, Allen, Mckinney area daily. Thank you
Dallas, like many cities, has plenty of homes for sale for less than they could be built for. so, financially speaking, NO it is a terrible idea. If you are the type of person that just has to have everything the way you want it, and are willing to pay for that, then it will at least make you happy!
- Darrell Self, "Darrell Self"
- Contributions:349
There are so many great homes on the market in the DFW area on the market. If you purchase a new home you will be most likely paying more than with an existing home. Also due to appreciation rates in good markets of 3 to 5 percent a year you are more likely to sell the existing home you purchase with a new home if the subdivision is still under construction when you go to sell your home there is a good chance the builder will be pricing homes to move them undercutting you and competing with the sale of your home. I hope that helps.
- sunnyview
- Contributions:25139
I would not do it. Moving to a new area and building a house ties you in tight to that location. Money wise you would probably be better off looking for an existing home in an established neighborhood instead.
Relocating to Dallas TX. Considering building a new house. Is it a wise move?
We were considering having a house built to our specs in Little Elm.
Is it a good move considering the number of houses already on the market?
The builder will probably stay active in the same area for another 5 years.
Thanks
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