Is it Better to Build or to Buy

Is it Better to Build or to Buy

Are you wondering whether to buy a home or to build a new one? You are not alone! Buying a home comes with many benefits and some disadvantages. On the other hand, building a new house comes with its pros as well as cons. Buying a house will help you avoid stresses and many issues that come during the construction process. Building a house will help you customize it to meet your needs. Below is a brief discussion of whether to build or to buy a home.

Building a home

Building a home allows you to go for the design that suits your needs and budget. You will have a floor, paint, cabinets, ceilings among other things of your choice. On top of that, having the right builder will ensure that you don’t spend much but you can easily end up spending more that you had planned for. You don’t have to worry about upgrades for decades. The only problem with building a house is that it takes time and you can end up spending more than what you had set aside for the construction.  Furthermore, you need to look for place to live temporarily until the construction is done. More so, you have to get a construction loan and permits to ensure that the building is built up to the code.

Buying a house

Buying a house is for those people who don’t want stress that comes with construction of a new home. When you buy a house you have a chance of negotiating the price and be able to look for a house that has all you need. This ensures that you get a house in good shape, though you may need to do some renovation and repair here and there. On top of that, you can move in immediately after closing. Depending on your financial power, you can do the upgrade immediately or do it at your own pace if need be. The only problem with buying a home is that you can end up spending more on renovation, repair and energy when you buy an old home.

Buying a home is less stressful and you can end up buying a home that has all you need provided you do a thorough search on the market. Building a new home has its own advantages. However, buying a house is more economical compared to building a new one. Depending on your savings and how fast you need a house, you can either choose to build or buy.

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Consider Your Resale Value Before You Renovate

Consider Your Resale Value Before You Renovate

Resale value is a common idea when it comes to real estate. Real estate deals with making good investments and watching your value appreciate.

Maintenance and renovations are the keys to ensuring that your property gains equity and when it comes to selling, you make good money. It is, however, prudent to identify that the amount of money you make depends on the level of appreciation on the market. All renovations made should be able to fit the property and the surrounding environments. That, however, should be made after careful consideration of the resale value.

Location

Location is an important consideration before the purchase of any real estate. If you gain ownership to a property that is out of town or off the road, the price will probably be enticing. When it comes to selling it, and the cost of that location has not yet increased, the resale value will still be the same, or just slightly higher. In this case, renovations will lead to losses. In most cases, the profit you gain will not be able to cover up for the cost of changes in the property. If renovations have to be made for the property to sell, it is advisable to go for minimum cost renovations.

Surrounding Environment

The surrounding environments also make an excellent factor to consider during resale. The whole idea depends on how much you want to earn at the end of the day. If the most expensive house in the neighborhood went for $300,00 after renovations, it would be useless to try and sell above that price. Therefore, if your buying price added to the renovation cost exceeds the limit, it would be pointless to renovate your property.

Neighborhood Style

Apart from price, the other factor to consider from the neighborhood is their style and technique. All renovations should be made in line with them, or else you will have to sale for less value than you anticipated. Although in some instances uniqueness is of importance, be careful not to overspend on your renovations or else you will have to overprice your property. For example, in a neighborhood full of two-bedroom bungalows, spending 100,000 on improvements is an investment that cannot be recovered. Instead, it is advisable to resale and invest the money in a larger home from a different environment where your investment will grow with time. In real estate, it is better to own a small house in a region full of mansions and bungalows than to hold a bungalow in an area full of small houses.

With all other factors remaining constant, if renovations have to be done, go for the minimum costs and maximum benefits. Some people go for costly products thinking they come with extra benefits. For example, why buy that $10 per square foot tile while you can have the $5 per square foot tile and still serve the same purpose?

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Get Pre-Approved Before You Start House Hunting

Get Pre-Approved Before You Start House Hunting

Are you perplexed about your financing options for your dream home? You’re just like thousands of other Americans that are first-time home buyers and don’t know what to expect from the home buying process. You have several responsibilities when it comes to buying a home including elevating your credit score, choosing lending options, deciding the type of mortgage that’s best for you, and getting your down payment together. More importantly, you have to find a house that meets your needs at a good asking price based on your income level. However, you can get the benefits of unconventional tools to help you qualify for the best monthly mortgage and interest rates.

 

How Can Pre-Approval Help Your Housing Options

Getting yourself pre-approved for a loan has several benefits for the home buyer. In fact, there are several ways to get pre-approved for a mortgage loan. For example, many people turn to the financial institution to get pre-approved for a mortgage loan. Unfortunately, the days of basic pre-approvals with little to no information are no longer available. A secure pre-approval lending option will let the lenders know that you’re a great candidate for the type of loan that you’re interested in based on the dollar amount specified in your pre-approval application.  Here are some more reasons to get pre-approved.

What Is The Housing Pre-Approval Process

  1. A pre-approval lender will take a close look at your credit (this is why it’s very important to have a good credit score before you try to purchase a home). Pre-approval tells the lender that your credit score has been checked in advanced and you meet the qualifications.
  2. They will verify your income (your income will help the lender establish your creditworthiness). Your income verification will tell the lender that you have enough financial backing to cover the monthly mortgage costs.
  3. Get a pre-approval letter (the pre-approval is a certificate that will assure the lender that you’re a great candidate for a particular loan for a home that you’re interested in buying).

Pre-approval on a home loan is one of the first steps that you should take to secure a loan on a home. Coincidentally, not many people take the opportunity to get pre-approved for a home loan and miss out on the opportunity to get ahead of other potential home buyers. Pre-approval allows you to look for your dream home with confidence. Pre-approval is more sufficient than pre-qualification on a home. However, keep in mind that pre-approval does not always guarantee you a loan on a home.

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4 Tips for Finding the Perfect House

4 Tips for Finding the Perfect House

Finding a perfect house to buy is going to take time and patience.  You will do a fair amount of searching before you find a house that suits your needs as well as budget. With the right tips you can buy the right house. Below is a brief discussion of 4 tips for finding a perfect house.

Know your needs and figure out what your dream home looks like

Buying a house can cost a fortune. For that reason, you should know what you need in a house. This will help you find a house that will meet all your needs. Know the number of people who will be living in the house, the size of kitchen you need, bathrooms required among others.  On top of that, you should figure out what your perfect home looks like. This will help you a great deal when going out there to look for the right home.

Consider your budget and location

If you are lucky then there are plenty of properties out there for sale. That being said, you should have a budget for the house. It is important to stick to the budget and have the down payment and pre-approval ready. The budget will help you know what type of a house to look for and in which neighborhood. Choosing the right location is essential, look for a house that is easily accessible. On top of that, it is important to go for a house where schools, hospitals and other social amenities are within reach.

Research and inspect the house

Working with a realtor is the easiest way of narrowing it down to a couple of options that fit your budget and location.  Once you have found a couple of houses that work for you and you are ready to go further in the buying process then it’s time to get the house inspected.  It cannot be stressed enough that you never buy a home without getting an inspection.

Consider remodeling

You may find a great house but it needs some remodeling. Buying a brand new house is really expensive and that is why many people are going for pre owned houses. After buying an old house you can easily remodel the bathroom, floor, kitchen, bedroom and other rooms to meet your standards. It comes with a cost but you will have a house with your touch.

Final thoughts

With the above tips, you can easily find a perfect house in any part of the world. You can also work with top realtors to find a perfect house for you and your family. Remember to stick to your budget and know that a big house is not always the best option.

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