Building a home can be a fun and rewarding experience.  There’s nothing quite like moving into a home that you designed from scratch.  But is there more to consider than just buying the land, designing the home, finding a builder, and waiting a few months for it to be built?  From experience, I’d suggest yes… and some of these might provide you with enough reason to choose NOT to build.

Now, I’m not going to tell you not to build.  Only you can decide whether it’s a good fit for you.  It’s just really important to me that my clients are informed.  Knowledge is power and when someone is informed, they can make good decisions more confidently and intelligently.  I have built and have friends that are builders.  I’m happy to provide you with their recommendation and referral as they are among the best in the business.   That said, here are some primary considerations that I think everyone should consider when building a home.  I’m hopeful this will be helpful in helping you decide whether building a home is right for you.

  1. Stress. Some polls indicate 10-20% of those who have divorced have sited the reason being building or renovating a home. Other polls claim building a home is one of the top 10 reasons for divorce. Buying a home can already be a stressful thing to endure. But building a home can be a lot more strenuous on a relationship. Naturally, there is so much more to consider and work through. When emotions rise due to time constraints, budget limitations or going over-budget, and differences in home decor styles, it can strain a relationship. According to a UGallery survey, 60 percent of women thought that one of the biggest challenges in moving in together as a couple was managing different home decor styles. According to a study done by the National Institute for Health, 2 of the top 5 causes of divorce are conflict and arguing… and financial problems. You’re likely to have an increased chance of both when building a home. Now, I’m not saying you’re going to get divorced. What I’m trying to demonstrate is that building a home is stressful… and people don’t often consider this when building a home.

  2. Investment. One can buy an existing home on property for a fraction of the cost it takes to buy property and build a home of the same size. So buying an existing home, even if it needs to be updated or repaired, is a much better value, apples to apples. This means your dollar gets you a lot more with an existing home than it would with a new one. You get more house… and more features and perks with an existing home.

  3. Time. It takes a considerable amount of time to build a home. One must consider the time it takes to find the property, design the home, select the builder, and go through all the myriad of changes and delays that are normal when building a home. Finding lots right now… especially good ones… can be just as challenging as finding an existing home to buy. I have buyers all the time that give up on finding the perfect lot to build on and end up deciding to buy an existing home. In addition, it’s very common for home-builds to be delayed weeks and even months in this market (see Contractors bullet below).

  4. Cost. It can be very costly to build a home. Building and construction material costs have skyrocketed the past several years… but so has the cost of labor to build. The reasons for this are many and include but are not limited to: cost of doing business for a lot of these companies supplying material here in the US, compliance and regulatory requirements for companies providing those materials (everything from furnaces to nails), local requirements with building codes and the time/cost to ensure compliance, labor shortage for skilled trades (see Contractors bullet below), among many others. Higher building costs have made the average home-build far more expensive as of the past few years.

  5. Contractors. It’s commonly known that, in general, contractors can be challenging to work with. It’s important for someone building a home to ensure that builder start on time, but also stay on budget (hard to do), and end on time (also very hard to do). Keeping good communication can also be challenging and frustrating. Perhaps the biggest challenge, though, in this market we have right now is the shortage of contractors. The demand for construction trades has gone through the roof the past 4-5 years and there is a shortage of contractors to do the work. What does this mean? Supply and demand. The skilled trades are calling the shots. Most will turn down the work or not even bother taking the time to call you back saying they aren’t interested. Those remaining will throw out such a wild number that they hope you won’t accept their proposal… but if you did… at least it’s worth it to them. Contractors are in such high demand that some builders and crews steal other contractors and crews from other builders… so it’s gotten very competitive. This has also affected the price of the jobs and work, as it’s hard for builders to retain their own crews and subs. And it also affects the time it takes to complete a home. See Time and Cost bullets above. The good builders are especially in short supply and availability. If you talk to someone and they are readily available to build you a home in this market and economy, you should be concerned. Unfortunately, many builders are overworked and the concern is that quality and thoroughness get compromised.

In summary, it’s almost always more advantageous to buy an existing home, even if it needs updates or repairs.  If you’ve decided building is not right for you, click here.  

If building is right for you, let me know using the form below and I’ll put you in touch with a few area builders that will be glad to have your business and treat you right.