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Buying vs Building a home

Wednesday, October 23, 2019   /   by Jen Raines

Buying vs Building a home

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Buying vs Building a home

We get asked this questions a lot from our new clients. Should I buy, or should I build. We personally have done both. The very first home we bought was pre-existing, the home we’re currently in we Built, and many others in between. Both can be challenging, and both can be great choices. We can help you make the right choice for YOU.


When you first talk to our team we’ll ask you a few questions up front to find out what you’re looking for, what is your “WHY” the reason you need, or want to buy a home, and what are your needs. By the time we’re done with the whole process, trust me we’ll know you pretty well. That’s super fun for us, we love to get to know everything about you, and your situation, so we can find you the perfect home for that’s going to be great for you. You’ll get to know us pretty well too. So, what’s the best for you? should you Buy a home that’s already there, or should you build brand new?


 


Buying vs Building a home
Building your new home

Almost every client we talk to, wants to buy brand new. Of course, its exciting! You get to Pick everything. What Builder will you go with, Which Layout will you choose? What upgrades will you add? Building Brand new, means you get to pick everything, exactly how you want it. It’s Fantastic! Some people find this part a little hard, What do you choose, when you see so many options? what if you’re not good at designing?  Usually a builder will have someone on staff that can help you through all the tasks of choosing. Our team is here to help as well.  We’ve seen a ton of houses, and we know what the current trends are, because we see them on a daily basis. We’ve all helped clients build brand new before, and a lot of us on our team at https://www.homelistingsinsaltlakecity.com/ have built brand new our selves.


Also, with most builders you get brand new appliances and a warranty for a certain amount of time, usually about a year. Which is really great if anything happens to your new home, like settling, after its built. Settling occurs when the soil beneath the foundation begins to shift. This happens with new and old homes, but people notice it mostly in the first few years, because you just put a Heavy home on soil. It’s going to move. It can cause cracks on the inside and outside of your home, foundation issues, among other things. Again, this happens with new, and pre-existing. It’s not meant to scare you from new builds, just said to make you aware that it happens.


Another thing you have to be aware of when building new, is build time. Weather happens, Construction materials may be hard to get in on time, and sometimes that can slow down a new build project. if you’re quoted a build time of 6 months, it could end up being done in 8 months. In our experience builders usually account for weather, and they’ll give you a pretty good idea of when it will be completed.


The Biggest concern with building new is the cost up front. The builder will require an Earnest money deposit (this happens with pre-existing as well, but usually builders want a higher EM amount then you would see with a private seller.  We’ve seen earnest money required anywhere from $1000-$4000. You’ll also have to pay a construction deposit, anywhere from $6000-$5,4000 This cost can go up depending on your price range, and all the options you add on structurally (to the outside of the house, garage, adding doors, windows, etc.) and what you upgrade on the inside of your home.  Most buyers, don’t have that amount of money saved up when they buy. That’s okay, with pre-existing homes, and depending on what loan option you use, you don’t have to come up with all that cash up front.


buying vs building new
Buying Pre-existing

Buying a home that’s already Pre-Existing  can be a great option for a lot of people. It has everything already built, picked out, and ready to go. You just have to decide which home you want. You also, don’t have to have as much money up front, which is a huge deal for most buyers. You’re biggest steps are getting pre-approved for a home loan. Check this out Buy a Home, both you and your dog won’t want to Leave! Equal housing Lender Finding the areas that you’ll consider moving too. Check out our school article we posted previously for help with this step. You can find that here.  How to Evaluate Schools When Buying a New Home


The Most fun you’ll have with this is the home shopping, once you pick the area you want, just pick out a home and Our team will take care of the rest. Check out our articles on Buying a Utah home? and Writing a Strong Offer!


Probably the biggest thing you’ll notice when you start scheduling home tours with us is, sometimes the home doesn’t have big enough bedrooms,  kitchen, or back yard. The best thing you can do is schedule a ton of home tours up front with us. look at all of them, and choose what you can live with, and what you can’t live without. This part is so hard! I know, we get it, we’ve been there. We are here to help you through the whole home buying process, ask us questions, use us as a resource. We’re here to help, and we’re happy to give you any knowledge we have while you’re deciding. Our team is Very patient, and Genuine. If you have a concern just let us know.


The other thing with buying a home that’s pre-existing is you’ll have to pay for a home inspection. its usually anywhere from $300-$500 sometimes more if you upgrade and add on tests. You can test for meth on a home, Raydon, etc. your Inspector will go over all of this with you and you can decide what you would like tested. in about 24-48 hours your inspector will give you a list of what they found, what’s concerning, and if he does not have knowledge on an appliance, like the water heater, furnace, or electric box. He’ll advise you to have a specialist test these components. which can come with an additional cost to you, or the seller. If its a buyers market, we can usually negotiate with the seller on covering those types of appliance tests, but keep in mind the seller can counter back. Not all sellers have money up front either that can pay for these tests, or repairs. Of course our team will work hard on our side to get anything covered we can, and negotiate on your behalf. When working with our team, ask your agent if we can have the seller pay for a home warranty that lasts a year as well. That way if over time, your house needs something taken care of, we have extra added protection as back up. Look over your home warranty for what’s covered when you choose one as well. They have some requirements that need to be meet, and only cover certain things.


Buying a home can be a very fun, exciting experience, especially if you know all of this upfront, and you’re prepared with the knowledge when these things come up. We’ll help you with each step, on what to expect, and how to proceed. All of us at https://www.homelistingsinsaltlakecity.com/ is ready, and hear to help.


Any questions on home buying, new home builds, existing homes, or getting prequalified? Contact us at 801-347-5054 , go to our website https://www.homelistingsinsaltlakecity.com/ , or email us at RainesRealEstateTeam@gmail.com.

Keller Williams South Valley | Raines Real Estate Team
Donny Raines
4020 W Daybreak PKWY
South Jordan, UT 84009
801-347-5054

Based on information from the Wasatch Front Regional Multiple Listing Service, Inc. as of October 23, 2020. All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or the MLS. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.
The multiple listing information is provided by Wasatch Front Regional Multiple Listing Service, Inc. from a copyrighted compilation of listings. The compilation of listings and each individual listing are © 2020 Wasatch Front Regional Multiple Listing Service, Inc., All Rights Reserved. The information provided is for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Conspicuous display of the following: Information deemed reliable but not guaranteed accurate. Buyer to verify all information.
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