Is Now The Time To Build A New Home in Tallahassee?
After yesterday's article about hiring a contractor in Florida, I received an interesting question from a reader who asked if now was the time to build a new home.
In fact, he was a little dismayed and felt that I was changing direction too swiftly, having written fairly recently about the huge new construction premium that buyers are paying for the right to live in a newly constructed house.
So I felt today would be prime for a follow-up article about determining the optimum time to build a new home.
Should You Build A New Home?
The determination for deciding to build a new home will never likely be based purely upon saving money at the time of purchase.
Even Lenny Brantley, President of Brantley Custom Homes, told me:
During my 20+ year career as a Tallahassee home builder, there has never been a time that building new construction in Tallahassee was less expensive up front than the going rate for existing home sales.
So I think there are other factors one must consider when deciding whether or not to build a new home or go into the Tallahassee MLS to buy an existing home.
Car Buying Analogy Brings Some Clarity
One way to look at this whole thing is with a car buying analogy.
Similar to new homes versus "used homes," buyers pay a premium for the right to be the first to own a car.
If buying a car was purely a financial decision, wouldn't we always buy a used car?
Well, I haven't bought a used car in over 20 years. I love the process of buying a new car. I love the new car smell, and the excitement of driving something in the newest year model.
I love the new features, the new gadgets, and of course, the new tighter performance. So for me, I'll probably remain a new car buyer when it comes time to trade in my ride.
Certainly, there are some people who have this mindset when buying a home. Maybe it's not "every time they buy," but perhaps it is "this time."
Why You Might Build A New Home
For this reason, I am still a staunch proponent of NOT building right now if the the purchase price/value is critical.
The market has dropped so much, and distressed properties are still creating pricing pressure for sellers.
If you are looking for a value buy, then look no further than existing homes for sale in Tallahassee.
But the bigger picture includes long-term considerations too:
- Your age - time of life considerations - Are you ready to buy that 20-year house? If you build a new construction home to own for the next 20 years, the efficiencies that you can build could very well work out to be "cheaper" than buying an existing home and owning it 20 years.
- Self Actualization - If you have the money to do it, and you really want to design and build a new home, why not? That's my rationale for buying a new car, why not get exactly what you want if you can afford it?
- Location - Do you really want to be in a specific Tallahassee neighborhood, but no house that fits your needs is available? We build when there is not enough inventory, it is possible to have location specific inventory issues.
Ultimately, you choose to build a new home because that is what you want. And you can afford to have what you want.
If you want to further explore whether or not to build a new home in Tallahassee, please drop me a note and we'll schedule a time to meet and prepare you to effectively evaluate all of the options for your housing needs.
*Joe Manausa Real Estate is a brokerage company headquartered in Tallahassee, Florida. Its unique business model provides specialists to both home sellers and home buyers, and the results speak for themselves. JMRE has significantly more 5-star reviews on google than any other local competitor. Joe Manausa Real Estate is a leader in internet marketing and utilizes search engine optimization, email marketing, social media and data analytics to get their clients’ home sold faster and for more money than any other Tallahassee brokerage firm. For more information, visit www.manausa.com or call us at (850) 366-8917.