Why Now Is The Time To Build A House
I'm meeting with a long time friend today to discuss his desire to build a house in a certain NE Tallahassee neighborhood.
For any long-time readers of the Tallahassee Real Estate Blog, you know that I have reported about the large new construction premium you must pay in this buyer's market, and how I strongly advise you to find an existing home for your purchase.
But there are some reasons why you really should build a house right now if you fit into a certain category.
Four Reasons To Build A House Today
Nobody is immune to real estate market conditions, the supply and demand dynamic is real, and it is measurable for every price point in Tallahassee.
Currently, there are more existing homes for sale in Tallahassee than there are buyers for those homes, and that means there exists pricing pressures in many of our price ranges in Tallahassee. Specifically, there is pricing pressure for Tallahassee high end homes, and it is among these higher prices that we find people who think now might be the time to build a house.
But building a home is not just a financial move. In fact, it could very well be a life goal for many people, the successful culmination of many years' hard work and sacrifice to save enough money for a dream home. If you fit into the category of "always wanted to build a house," than the time could be most right for you today. Here is why:
- The new construction market is just coming off a bottom, so there are hungry builders and subcontractors in Tallahassee who will likely compete for your business.
- The cost of land has regressed to values last seen more than 10 years ago, so it is likely you will get an exceptional value on the land.
- If you are financing any of the building, mortgage interest rates are at a historical low so your payments will be lower than ever.
- Most other costs you incur when you build a house (sticks, bricks, and labor) will continue to rise over time, so it won't likely get any cheaper to build.
First Plan To Build A House
So how do you go about starting the process to build a house?
We will be writing some follow-up articles to address this in detail, but I can tell people who build a house often make the same first mistake as people who buy an existing home.
The biggest mistake they make is they start looking at houses, at house plans, and once they become emotionally invested, they try to make sure they are getting a good deal.
It is better to choose a buyer's agent first, then to scour the market with that agent to select location and home types, and then put together a plan, with a real estate buyer's agent, which will save you a lot of money.
It is OK get to crazy-emotionally invested, just do so after you make sure you will build a house that fits your needs, wants, and budget.
And if you would like to sit down for free initial counseling session to determine whether or not to build a house, simply drop me a note and we can schedule a time to review your specific wants and 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.