To Build or Buy – Pros and Cons

 

to come to the right decision for you real To build or buy a spec home is a personal decision that depends on many factors such as your financial situation, time, budget, criteria, intended use and family or business needs. There are many new spec homes that are more economical and require a lot less time commitment than a custom built home.  You may want to look at spec homes in The Woodlands or surrounding areas first, unless you already own a piece of land that you want to develop.  Let’s take a look at some pros and cons:

 

Pros of Custom Built Home

 

A custom built home means buying the land and having a builder build your Texas dream home. Keep in mind that a custom build home can take approximately 6 -8 months to complete. You will need to work with an architect as well to draw up plans. It is always smart to get estimates from a couple different builders and architects.  Be sure to work with a knowledgeable real estate agent that can give you comparables to let you know about future growth and appreciation and who works with new construction. Be careful on the upgrades and custom design. Do not over upgrade you may not be able to get your money out. Stick with neutral colors and traditional designs for resale purposes.

 

Pros 

 

·        Getting exactly what you want

·        Living in the location you want

·        Builder warranties

  

Cons

 

·        Higher costs

·        Takes approximately 6 – 8 months to build

·        Construction delays

·        May be harder to sell later if you have the most expensive home in the neighborhood.

 

Pros of Purchasing a New Spec Home

 

Many large builders and general contractors build spec homes. They build certain models that they can predict costs on because they have repeatedly built the same type of homes. They know their profit margin. However, many Texas new home spec builders got caught with new housing inventory that they could not sell at the prices they originally intended because the real estate market prices declined the last two years.  These builder close outs are available now to buyers looking in The Woodlands and surrounding Spring and Magnolia areas.  The builders are offering all sorts of great incentives such as paying $10,000 towards buyer’s closing costs, buying down mortgage points, offering upgrades, paying taxes and homeowner dues, etc.   Although the complete freedom of a custom home is not available with a spec home, the buyer can usually choose from several different models and some options such as lighting, cabinetry, flooring, appliances and paint.

 

 

Pros

 

·        Costs are less

·        Home is brand new

·        Offer limited choices on upgrades

·        Builder incentives such as paying closing costs and upgrades, taxes and HOA fees, buy down on mortgage points.

·        Waiting time for home to be completed is less than custom built home 

·        Builder warranties

 

Cons

 

·        Loose complete freedom over choice

·         The builder may have already pre-selected upgrades that can or cannot be changed. 

 

 

After weighing all the pros and cons and doing a bit of research on comparable homes sales in the area you choose, you should be able estate wants and needs.    

Check out breath-taking neighborhoods in The Woodlands at http://www.utahburden.com/The-Woodlands-Villages