As we get out of the winter and move into spring and summer it’s a time people think about buying a home.  A time for families to have a place all their own.  In reading many articles on the economy and whether it is a good time to buy or not there are mixed signals.  One article says the market is picking up and prices are starting to rise.  Another says that prices may still be able to come down ever so slightly.  I have two comments regarding those divergent points of view- first, we will never know when the  real estate market hits the bottom until after we missed it, and secondly, you need to buy a home for your value, your personal use, and your desires and wants.  You do not need to look at what others are saying or doing but you need to do what works for you.  The questions you must ask - Is this something that will work for me? , Will I be overextended financially?,  Can I make the monthly payment?.  One thing I always remember in the buying of a home is that you are not really paying $ 200,000 or so for a home -you are paying whatever the monthly payment is and is that within your budget.  That’s the question to ask in your purchase decision.  Can I afford this purchase on a monthly basis? Good luck with your search.

Many people in today’s market are looking at whether I should buy a new home or just remodel my existing home.  In looking at both sides of the issue in today’s market you have to consider many factors.  Obviously, you are not moving in the remodel situation and you already know your neighbors and community.  Sometimes that may be good and sometimes that may not be so good.  Anyway, it is not an unknown.  You’re also familiar with your home if you’ve been there a while and know what improvements, maintenance, etc you have done.  You then have to look at the cost involved in the home improvement and the benefit to you.  Are you looking at remodeling the kitchen or are you looking to add more square footage.  Then you need to ask am I going to have a home that is more than the value of the neighboring homes.  If it is more than 20% more than the average value of homes in your neighborhood you will probably not recoup the value of the improvement. 

In looking at the new home you ask some of the same questions concerning location but can be more secure from a maintenance standpoint knowing you have a new product.  Usually the values in a new home neighborhood are similiar and probably are not of concern that you would be overbuilding for the neighborhood. Financing is another option in your new home as you can, depending upon your downpayment, include other items such as debt consolidation, college loans, auto loans and the like.  The biggest thing in the purchase of a new home is that you get to pick what you want at the time of life you are in at that point.  If you are a young family you may need more bedrooms and yet later in life you may be looking for a one story floor plan.  Your life needs change which require your housing needs to change. 

Best of wishes in your adventure of buying or remodeling your home!!

Since this is our first posting on the blog I thought it would be good to describe what we are doing and why.  Primarily I am going to be talking about the New Home Building industry and how the process works.  I’ll also talk about why you should build a new home and what challenges and benefits there are in new home construction. 

When we think about building of new homes we can think of two different types of purchases.  The first of those purchases would be the purchase of a new home that has already been built.  In essence, it is the purchase of a new home that the builder has completed and now is available for sale. You, the buyer can merely move in and set up your “home”.  The second type of purchase is having a new home built on your lot or a lot owned by the builder.  Both have their advantages and disadvantages.  In the first case where the home is already completed you will be able to move in immediately and may be able to negotiate a great price- after all this may be a completed home the builder is discounting to sell.  In the second case, where you have a home built for you on your site or the builder’s site we see some different advantages.  You, the homebuyer, now get to choose the type of home, the colors of your carpet, flooring, cabinets, countertops and many other items.  If you have specific requests for your new home this is an great time to see about having them implemented by your builder.  If you don’t like to make decisions have the builder help you or go back and buy a completed new home.  If you own your own lot this is the only way you’ll be able to proceed.

In my next posting I will be talking about the decision to buy a new home versus the decision to buy an existing home.  Both have specific advantages and disadvantages.  We’ll discuss that in my next posting.  Hope to talk with you then.  Happy home buying and building.