Should I build a house now or wait? Now is a good time to build a house. (2023)

The decision to build a home should not be taken lightly and should be done with caution. There are many things to consider before making your final decision. There's the location, the price, and even the style of home you prefer. So if you are wondering: “Should I build a house now or wait?🇧🇷 There are a few things to consider before making your decision.

Factors like the housing market, mortgage rates and more can all play a role in deciding whether now is the best time to buy a home.

These are the questions to ask whendecide if now is a good time to build a house.

Do I have time to build a house?

Building your first home is much more complicated thanbuy your first house🇧🇷 There are hundreds of decisions to be made, and if you are doing the work on site it will take months, possibly years, in terms of time and manpower.

When we built our second home, there were many challenges. It was a custom house and everything needed a decision, and if it's not decided quickly, things stop.

Building a house means that you are constantly discussing things related to the home. What is needed, what goes where, and how it will affect your life in it. All of these decisions are made conceptually, as you can't see the product until the house is finished.

Can I wait to move?

Building a home takes longer than buying an existing home. If you intend to move in a year or two, building a new home is not the ideal option for you. Building a home takes a lot of time and effort, and if you're not working on it for a long time, it might be better to buy an existing home.

What's your budget?

Building your own home usually costs more than buying an existing one, but that doesn't mean you can't find something affordable. However, with building a home, there are many additional expenses including lot premiums, connection fees, architectural fees, and construction costs that can add up and make your budget tight.

Can you handle additional expenses?

Even if you're on a budget and great at sticking to it, be aware that there will be unexpected costs. For example, lumber prices may rise; drilling may need to travel an additional 50 feet for a well.

In the end, every home building decision costs more money and you're always balancing what you can do now versus the cost of doing it later. Not to mention things like property taxes will be higher than you expect.

Of course you will probably have alist of things you want in a new house, but the total cost of all of them will be higher than expected (I'm looking at you:accessoriesand granite countertops). If you can handle uncertainty, construction can be a great option.

But if you're worried about the rising costs of lumber prices and other materials involved in building a custom home, it's best to find your dream home through home sellers and not build your own.

There is often pressure to build something more luxurious than you originally wanted in order to compete with other buyers, causing you to spend more than you originally planned.

Is it time to move?

If you've lived in the same house for years, building a new one can be the perfect opportunity to downsize or have more space for your stuff. Not having to worry about reselling a house can also be a huge advantage if you're not in a rush to sell and buy again.

If you want to enjoy the comforts of a community for the long term and have some extra cash, building a new home might be a great option for you. Price isn't everything, and sometimes it's worth paying a little more if it means moving into a new home, it doesn't mean sacrificing your style or your freedom of choice.

What does the real estate market tell you?

Building a home during the seller's market can save you money, but that doesn't mean there aren't hidden costs. An active real estate market means you may be experiencing material shortages and rising prices, while you may lock in some prices, other times prices skyrocket and can tear your budget to shreds.

Ask an experienced realtor if he expects the market in your area to continue to rise or stabilize for the foreseeable future. They usually have a good idea of ​​the housing stock and the effects that rising mortgage interest rates can have on home prices.

This can give you an idea of ​​where building and not building a home can save you money compared to buying an existing home.

A balanced market means you can probably buy a home with some time on your hands, but an active market means you'll see bidding wars and other things that can make building your own home a more attractive part. It certainly was for us when we built our custom home.

Will you need help with financing?

Financing your home will be different than financing an existing home because it is a completely new project. Interest rates on construction loans are often more expensive than traditional loans.

Also, if you currently own a home with a mortgage, you will need to be able to cover two mortgages with your finances. This can put a strain on your budget, and it's a good idea to ask yourself if it's something you're willing to spend.

Do you have a piece of land or an area in mind?

Many times when we decide to build a new house, we forget that we need to findan acre of landto build (or less, depending on whether you're deciding betweencountry life vs city)🇧🇷 This is another cost you will have to finance and finding land to build on can be one of the most difficult steps in the entire new home building process.

If you are using a custom home builder, have them review the building lot to ensure it is a good lot to build on, or use industry experts (drill specialists, realtors, etc.) to help you decide whether a particular batch is right for you and your family.

Are you ready for the responsibility?

Make no mistake, just because you're not swinging the hammer, there's a lot of responsibility.

Building a home is hard work and one that will be with you for some time, so make sure you handle all the decisions that involve building a new home. This is not only an investment in your future, but also in your quality of life, so please be 100% sure you are ready for this commitment.

Are you good at making decisions quickly?

Building a house means you have to quickly decide with decisions. Often your builder will need impulsive decisions because the tradesmen (electricians, plumbers, etc.) are in the house and need you to make a decision before they can move on.

This means that you will have to decide quickly and decisively on an ongoing basis. If you have a hard time making decisions or don't have the time to commit to the whole process, building a home might not be right for you.Building a spec houseit might be an easier option.

Is now a good time to build a house?

Ultimately, your personal situation will help you decide whether now is the right time to build a home or whether to wait. If you already have your own home, think about what you can afford, the time involved, and the strain a 1-2 year project can place on your family. While there are many perks to building a home (you get exactly what you want), there are some obstacles to getting there.

If you're ok with that, now might be the right time to build, but if you're not sure or don't have such a long term, buying existing homes or choosing a specific home can be a great way to update your lifestyle. space without committing to a year or more process.

Buying an existing home may be the best option, but it doesn't necessarily mean it's the best option for you. Take your time and weigh all your options before making any hasty decisions.

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