Have you been sitting on the fence where your move is concerned? Well, we have some interesting market dynamics that may change the landscape slightly (perhaps more than slightly…). We have many clients who are in the process of building new homes right now, and most of these builders have repeated a slightly concerning trend. Lumber costs appear to have doubled or even tripled in some cases, and this will certainly affect the new construction realm as builders begin repricing to adjust to the new numbers being quoted to them.
What does this mean for you?
Some of the builders will not be in a position to absorb these costs, and they will have to raise prices significantly in order to continue to build quality homes. Other larger builders may slowly increase pricing to avoid shocking the market and yet help offset the “new normal” where their lumber costs are concerned. Either way, if you have been “on the fence” where your move is concerned, it may be time to move into action. If building costs continue to increase rapidly, this will cause similar existing home prices (especially in the move up realm) to continue to increase. If you were considering new construction, we should be meeting with builders now, to lock in Parade of Homes promotions and current pricing before adjustments start to be made on a larger scale.
We never know exactly how these price changes will affect the market as a whole, yet we can predict some possibilities, as we look to the future of our local market. Would you like to discuss these dynamics further? Call me and let’s set up a time to chat and get your plan moving!
We have many clients who are having trouble finding exactly what they want in the existing market these days, and many of them wonder if building a new home is the answer. “We can get exactly what we want if we build new!” Of course, while the prospect of a brand new home is very exciting, there are always pluses and minuses when deciding on anything in life.
There are many benefits to building new, I mean, what’s better than a brand new home? No one has messed up the paint or carpet, no furnace breaking down just after closing, newer floor plan options and designs, you pick the colors and you choose the fixtures, and top that off with the builder warranty! If something is wrong after closing, they get to fix it. Everything looks so nice and new and as we visit model homes, it is as though the angels start singing when we walk in! Simply magical.
On the other hand, there are various challenges you may encounter upon embarking on a new build. There ARE a lot of choices, and those appointments take a lot of time and must be completed in “strict deadline fashion.” All of the brand new products look very beautiful, yet some of them are not as high quality as the products they used to build my grandma’s house. A new home also comes with its “bugs” that you, the new homeowner, will need to work out with the builder, and this is sometimes a time consuming and patience testing process.
Overall, I think our clients would say that building a new home is hard work and yet it is well worth the time and patience needed to endure the ups and downs of the journey. On the other hand, many of our clients are choosing to purchase existing homes. Certainly they come with their own set of joys and challenges, yet we all find joy in different aspects of home ownership. If you would like to dig into these types of decisions a little deeper, please give us a call and we would be happy share some experiences and insight to help you weigh the options. We are always happy to help!
Let’s take a look at the Twin Cities market and find out which types of properties are selling and how it affects your move!
We have lots of clients who are currently building new homes-what an exciting prospect! Building new is fun and filled with customization opportunities that really make the home “all yours.” Many of our clients wonder, however; “What do we do about our current house?” Do we sell it right away or should we wait until our build is almost completed? As always… It depends… Here are a few questions to consider:
Q: Can you qualify for the new mortgage while owning both houses? We can have our lender help you to discover whether you can be non-contingent with your builder so they can start the process and build the home while you stay in your current place until we time out a listing date closer to your new construction close date.
Q: What is your appetite for risk? As we have seen, this market has afforded a bit more risk taking within the realm of buying before you sell. We are happy to explore the unique elements of your current situation so that we can make predictions on how fast your home will sell in any given market, market shifts coming up, and your equity position which will come into play where timing your sale is concerned. Owning two houses is never preferred but many of our clients weigh that risk against a double move and prefer to take that risk (this is where individual circumstances come into play).
Q: Are you a “one thing at a time” sort of person? Many of our clients prefer to complete one project before starting another one; it just makes them feel more comfortable. Building a home is no small task and with all the decision making involved, and selling a home comes with its own kind of stress. As much as our team seeks to handle all the details, many of our clients prefer not to take on everything at once. They prefer to sell their home, move to a short-term rental and begin the building process after that is accomplished. A few extra steps but overall, less “what if’s.”
There are more questions we explore with you when coming up with a plan to make this type of move, but this should get you started thinking. CALL US, so we can set up a preliminary consultation and explore all your thoughts and options before you start on your plan. We can help to make your move a smooth and fun process by planning ahead! Happy to help.
As an existing home on the market, how can you compete with new construction? Here are three things we can do:
Work on the finishing touches to make sure your home looks “model” ready.
Another thing we recommend is to highlight the neighborhood you live in.
We can also highlight the fact that your home is “move in ready”!
If you’d like to chat more about competing with construction or just ask us some questions, please feel free.
The Angela Sadat Group works with all kinds of buyers and sellers that are interested in various types of real estate opportunities. Obviously, as the market has improved, we have been working (again) more and more in the realm of new construction homes. Since I have a unique expertise in this area, given my many years of representing a high end custom builder, I have found this experience comes in handy when helping buyers choose builders, select floor plans/building sites and add options that will make the most sense for their budget and lifestyle.
Here are 3 items that will help you get started if you are considering new construction as an option:
I have many more tips to help along the way to having an amazing home building experience in whatever realm you chose to build. Call me today if building new is something you are considering and let’s start asking some questions!
Welcome to our blog. We hope to be able to provide you with some valuable resources about selling and buying a home in the Twin Cities. We may also include a favorite recipe of ours from time to time, so check back often.