If you’re looking for a new home, you have two main options: You can buy an existing home or you can build your house from the ground up. The decision of whether to buy or build a home is a big one. There are pros and cons to each option, and the right choice for you will depend on your specific circumstances. Here is a brief breakdown of the benefits and drawbacks of buying vs. building a home:
The Pros and Cons of Buying a Home
Buying an existing home tends to be more affordable. You can also buy older homes that have unique characteristics that you won’t find in newly built homes. You’ll have more options in terms of what neighborhood you prefer. Additionally, you won’t have to wait as long to move into a home that you’ve bought.
Some of the disadvantages to buying an existing home include it’s very hard to find the perfect home. You may not be able to find a home that perfectly suits your needs and preferences. You may also have to deal with expensive repairs or renovations, especially if you’re buying an older house or one that may not be up to code.
The Pros and Cons of Building a Home
When building a house, you’ll be able to design your home exactly how you want it. You can customize every aspect of your home, from the layout to the finishes. Because everything is brand-new, you probably won’t need to spend a lot of money on repairs or replacements for some time as well.
The biggest downside is that it takes quite a bit of time – at least several months – to build a new home. Additionally, it can be quite expensive to build a home from scratch. You’ll need to consider the cost of land, materials, labor, etc. Finding land on which to build can also be a challenge.
Buying vs. Building a Home
There is no right or wrong answer when it comes to deciding whether to buy or build a home. The best decision for you will depend on what kind of home you want, your budget, and whether or not you have time constraints. It all depends on your individual circumstances.
For more advice on buying or building a home, contact us at Randy Lindsay today.
If you’ve recently bought a new house, then you can sell it anytime you want. It’s your house, after all! However, that doesn’t mean you should. Although extenuating circumstances might force you to sell your house soon after buying it, there are several reasons why you should consider waiting a few years if possible.
Why Should I Wait Before I Sell My House?
Real estate tends to be a very stable investment and will typically appreciate over the long term. If you sell quickly after you’ve bought (say, within the year), then odds are you won’t make much of a profit; if any. In fact, it’s more likely you’ll lose money when you take into account all of the costs associated with buying and selling a house as well as moving to and from a new location.
For instance, in addition to the down payment and mortgage payments you’ve already made, you’ve also spent money on moving costs, property taxes, mortgage insurance, and more.
Secondly, even if your house does jump in value significantly, if you sell your house within a year of having bought it, your capital gains will be taxed like regular income. You need to wait at least a year for your capital gains to be taxed as long-term gains and not short-term gains (which will save you money).
How Long Should I Wait Before I Sell My House?
At the very least, you should wait a year to avoid a higher capital gains tax rate. However, considering all the costs associated with buying a house, most homeowners won’t break even when they sell unless they wait at least two years.
For more advice on buying and selling homes, be sure to contact us at Randy Lindsay today.
You’ve finally found your dream house, and you can’t wait to submit a bid! However, you’re not the only one interested: You have competition. A situation like this is likely to occur when you’re in a seller’s market, and it’s critical that you know how to navigate it.
If you get caught up in a homebuyer bidding war, you’ll want to be sure to avoid the following mistakes:
- Bidding all your money: It can be easy to get caught up in a bidding war, but the last thing you should do is bid the entirety of your budget. It could make things very tight financially speaking, especially since you should put aside money for things like maintenance and repairs.
- Lowballing the seller: If you know there’s another buyer in the picture, don’t try to submit a lower offer thinking you’ll be able to submit a second offer. The seller may simply decide to accept an offer from the competing buyer. Make sure your first offer is a strong one if you want to be taken seriously.
- Removing all contingencies: Removing all contingencies from your offer will be appealing to sellers, but you’re putting yourself at serious risk. For instance, if a home inspection discovers significant issues, you won’t be able to back out of the offer without incurring a financial penalty. If you plan to remove contingencies from your bid, be careful about which ones you remove.
These are a few of the common mistakes you should avoid if you find yourself in a homebuyer bidding war. It’s essential that you don’t get too caught up in a bidding war and proceed cautiously.
For more homebuying tips, be sure to contact us at Randy Lindsay today.
Believe it or not, selling a home can cost you money. It’s not as simple as just putting a for-sale sign in your yard. If you want to sell your home as quickly as possible, hire a real estate agent who can help you navigate the home-selling market and find motivated buyers.
You may need to invest some money into repairs and upgrades where needed. But a Realtor and home improvements aren’t the only expenses associated with selling a house. The following are three hidden home selling costs you may not have known about:
- Appraisal: You can use comps within your neighborhood to help determine the value of the house, but you’ll get a more accurate assessment of what to ask your home is appraised by a professional. Independent appraisals cost between $350 and $500.
- Survey: If you own an older home in an older neighborhood (and/or your home is in a rural area surrounded by natural elements), you’ll need to schedule a survey. A land surveyor will determine the property lines so you know exactly how large your land is and exactly what you’re selling. A land survey can cost from $250 to $1,000.
- Vacant house insurance: If you’re not living in the house, you’ll want to purchase vacant house insurance. This protects you financially if your house is vandalized. Expect to pay upwards of a few hundred a month.
There are a lot of different costs associated with selling a house. Although you may be aware of most of them, there are often hidden home selling costs.
For more home selling advice, contact us at Randy Lindsay today.
Back in the day, it wasn’t uncommon to use lead paint. Lead was used because it allowed the paint to dry faster and resist moisture; however, once it was discovered that exposure to lead paint could result in long-term negative health effects it was banned in 1978. Although you won’t find any homes constructed after 1978 with lead-based paint, older homes may still have it.
Should you buy an older home if lead-based paint was used?
You Can Remove Lead Paint
Sellers are required to inform you if they know that lead-based paint was used in their homes. If they don’t know and you’re buying a house built before 1978, then they should give you ten days to have a professional test the property for lead paint. It’s worth noting that sellers are not required to test for lead-based paint themselves.
If you have children, you may want to avoid homes with lead-based paint. Older paint chips may fall, and if they consume any of the paint, it can cause serious health issues. If you don’t have children, this won’t be as big of a concern, but you likely don’t want to live in a house with lead paint either way.
Fortunately, lead paint can be removed after you buy a home. Just make sure a professional does it. If you do it yourself (DIY), you risk exposing yourself to lead-based dust and debris.
You Can Encapsulate Lead Paint
Another option is to encapsulate the lead-based paint by adding a special liquid coating over the top. However, this will only work if the paint is in good condition.
If you have any other concerns about buying a home or would like to speak with a real estate agent, contact us at Randy Lindsay today.