Should you buy or build a home – this is a question many home buyers are contemplating. According to Walter Molony of the National Association of Realtors, there is a big price difference between buying an existing home and building a new one. The main advantage to having a home built is that you can customize it, but financially, buying an existing home is often the better financial choice. Building a home is also an lengthy process that requires a lot of work on the part of the buyer What would be the advantages of buying an existing home?
There is nothing wrong with building your new home but be aware that is it is long process that can be a lot of work and end up costing a lot of money, it is not a decision that should be made lightly.
1. Find a good lender. Your realtor may have some recommendations for you but if you don’t yet have a realtor, it is best to find a local. Local lenders know the market in the area you want to buy in and they will know about any special programs that may be offered.
2. Know where you want to live. Narrow down the parts of town that you would like to live in. You may use criteria such as schools, taxes, drive to work, etc. By narrowing this down it makes setting up a buyer search much easier.
3. Find a Realtor. If you are buying the seller pays the cost of your buyer agent which is another reason you may as well have a Realtor. Find a Realtor that is knowledgeable in your area and that has experience. You need someone you can trust to help you find your new home.
4. Don’t rule out less than perfect homes. Just because a home needs paint or new carpeting, don’t rule it out. If the price is right you will still get a great deal and you can fix it up as you would like.
5. Be ready. Once you are out there looking, if you find a home you just love, you need to be ready to make an offer. Right now with a very low housing inventory, nice homes and good deals are going fast so the sooner you make an offer the better your chances are of getting the home.
If you are ready to start the home buying process, contact me, I can help – I have been successfully selling real estate in the 13 county metro area and Western Wisconsin for over 14 years.
People are always asking is it a buyer or seller market. In a buyers market prices are low and there is a lot of inventory to choose from. In a sellers market the prices are on the rise and the inventory is limited. Since the housing crisis, the Twin Cities has been a buyers market but it now appears that things are switching over to a sellers market. According to the Minneapolis Area Association of Realtors, right now we have a 4.1 months supply of inventory of homes for sale. This means that in the current market it would take 4.1 months to sell all the homes that are listed as active today. As a rule of thumb the following numbers of months supply of inventory dictate the type of market we are in:
So, judging by the August numbers and these figures, if you ask if it is a buyer or seller market I would say we are heading into a seller market but the slow time of year is approaching so the numbers may swing back more to the balanced market.
Buyer communication with a Realtor is a key component in finding your new home. As a Realtor I only know what you tell me, so if certain things in a home are important to you, you need to let me know. Often we get caught up in the price, city, number of bedrooms and bathrooms, garage stalls, etc. While these are important factors in choosing your home they may not be enough to find the perfect home. Many of us are looking for something specific in our new home and until we find it we won’t settle. When you sit down with me to discuss what you are looking for, don’t forget to tell me your deck has to face west, the elementary school must be within walking distance, you want a heavily wooded lot, you want a local coffee shop within 4 blocks, you need a wood burning fireplace, a front porch is a must or other items that you may not think are important but really are the key to finding your new home. I may not be able to include all these criteria in an MLS search but I can help weed out homes that come up in your search by knowing what is really important to you. I need to understand you to find you the right home. Don’t assume that I just know what you like or are thinking because I probably don’t – buyer communication with me, your Realtor, is the key to success!