If you are like a lot people you are beginning to ask the question whether or not it is time to buy land and build a home. Some could argue that the current state of most markets would justify buying land over a pre-existing home. Consider the facts: existing home sales increased 7.6% last month. With sales on the rise again, prices have also increased anywhere from 4-12% in most markets. When sales are low, supply and demand is in favor of the buyer. When sales begin to grow, the power, and financial advantage, can quickly turn to the seller. It is economics 101.
In addition to the current state of the market, there has been a decrease in material and labor costs for building a home. Land costs have also gone down, making it not only affordable to build a home, but in most cases financially preferable.
Some communities are designed to be financially friendly to those looking to build a home. Many people looking for a new home have found it more cost-efficient to build a home rather than find a home for sale. Less expensive homes often have more than one person bidding on the home, which causes the price to quickly rise and make the home less affordable and less attractive than it was initially.
Even bank-owned or foreclosed homes have their own set of complications. Foreclosed homes are generally far cheaper than any other options. Even if they still remain a cheap sale after bidding, the home is generally sold as is. In these cases, the homes can end up proving financially unstable. There are parts of the home that could require immediate attention, further increasing costs. Repairs can cause enough financial strain that the home becomes a burden, the opposite of that which was intended.
These circumstances have led many down the path of building a home on prepared land in growing communities. With financial circumstances prepared beforehand, this method of finding a home has proven to be beneficial for the homeowner, as they now have their dream home at relatively the same or cheaper price than it would cost to buy one.
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