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There are many decisions you'll need to make before striking out
on your house hunt. Things like what area of town you want
to live in can really be impacted by such not-so-minor details
such as property tax rates or the quality of the school district.
What kind of city amenities are
being offered?
Parks, pools, golf courses or other recreational facilities can
impact not only your personal quality of life, but the eventual
re-sale value of your investment.
Here are some questions you'll need to ask yourself when deciding
on where to buy your next (first?) home:
- Do I want an older/more established neighborhood...with trees
and mature landscaping?
- Do I want a newer area of town that is convenient to schools,
churches, malls and shopping centers?
- Does the area I'm considering have increasing (yes!) or
decreasing (no!) property values?
- Do I want to live in the city, experience suburbia or the
challenge of a rural lifestyle?
- Do I want to live close to my job or am I willing to sacrifice
the drive to live in the country?
Based on your answers to the questions above, make a list of
questions prior to settling on a final location of your next home.
New or Pre-Owned?
Sooner or later, you'll need to decide whether you want to own a
new or a pre-owned home. There are advantages and disadvantages
for both; check out the list below...
New vs. Pre-Owned
Homes
Whether you're thinking seriously about buying a new home versus
a pre-owned home, each one has it's own unique set of advantages
(and disadvantages!). Let's run them down and let you make the final
decision...
Pre-Owned Homes-Advantages
- Mature landscaping
- Established neighborhoods
Homeowner added
amenities.....
- Sprinkler systems
- Pool & hot tub
- Draperies & window
treatment
- Shutters and blinds
- Special paint and wall
finishes
Pre-Owned Homes-Disadvantages
May need updating.....
- Carpeting
- Painting
- Kitchen & baths outdated
- Smaller rooms/smaller bathrooms/lousy closet
space
- Lower ceilings
- Maintenance issues need to be addressed:
Potential necessity of a new roof, new air conditioning system,
new plumbing
New Homes...Advantages
- Fresh "pallet" to work/create from
- Never lived in
- May be able to choose finish-out items such
as carpeting, painting, wall papers, etc.
- No immediate maintenance needed
- More upside to increase value in early years
New Homes...Disadvantages
You may need to budget the purchase
of a slew of amenities out of pocket:
- Landscaping
- Sprinklers
- Fencing
- Pool or Hot tub
- Draperies, shutters and blinds
- Wallpaper, special wall painting treatments,
etc.
- Builder grade finish out materials used (you
may want to upgrade)
- Floor coverings
- Plain one color walls
- Lighting fixtures and ceiling fans
- Neighborhood not well established
- Lots of construction still in progress (which
means the potential of noise and mess)
- May be several years until neighborhood sold
out and complete
Building vs. Buying A New Home
While searching for the perfect home, you may end up deciding on a
brand new house in which to create your home. A house free
from the usual pitfalls of a "pre-owned" model: No
chance for the previous occupants to mess up the carpets, scratch
up the walls, neglect the maintenance or forget to mow the yard or
trim the hedges. It's your opportunity to start from scratch and
have a "fresh pallet" to work from and create your own
home.
You may have spent your weekends over the last six months visiting
beautifully decorated model homes in an area that you're hot
for...and may have even found the perfect new home. The question
you've got to ask yourself? "Will this home fit our
lifestyle and will it be "the perfect home" six months
from now? What about sixty months from now?"
Spend time reviewing the floor plan of your potential new home to
(try to) make sure your "perfect home" is truly perfect.
Here's yet another Advantages-vs.-Disadvantages list to mull over
in your decision making process.
Building A New Home:
|
Advantages |
Disadvantages |
|
You choose the plan |
Building takes 4 to 8 months |
|
You choose the finishes |
Construction Delays |
|
You choose the exteriors |
Cost over runs |
|
Have it done your way |
Rising costs as you build |
| Summary: |
Your dream home (hopefully!) |
Can be a very frustrating experience |
Buying
An Existing Home:
|
Advantages |
Disadvantages |
|
Move in quickly |
You get what you see |
|
Builder may be more negotiable |
Changes generally not allowed |
|
The price is set |
"Blah" finishes chosen by
builder |
| Summary: |
Less Stress & Frustration |
You may not get what you want |
Custom Building vs.
Tract Builder
There's a lot to be said for being able to contract with a custom
builder to build your new dream home. Although today's custom
builders may not be the same as the custom builders of yesterday. A
reasonable definition of today's custom builders? They're
home builders that'll build your home the way you want it, where
you want it and how you want it.
Alotta builders call themselves
"custom builders" but in reality they're tract builders:
They'll let you choose your paint, wallpaper and floor
coverings...and for many consumers, that's perfectly fine.
You've got to determine whether a custom home or a tract home is
the way to go for your family...your actual budget is usually the
final deciding factor. In some areas around Dallas-Fort Worth it can
cost over $250,000 to build a custom home, while in some of the
outlying areas (like Waxahachie or Mansfield) there are custom
builders ready to build your custom home for as little as $110,000.
Many times "planned" subdivision lots are sold to large
tract homebuilders that may build "tract-style" homes from
$ 80,000 to $ 300,000.
Custom Builder
vs.
Tract Builder
Comparison:
| Consideration |
Custom
Home |
Tract
Home |
| Architectural
plans |
Custom designed by an
architect mutually agreed on |
Usually 3 to 5 stock
plans |
| Finish-out
selections |
Limited only by your
checkbook |
Usually only a small
selection of builder quality materials |
| Building
site |
Built on your lot or the
builder's lot |
Available lots in
specific subdivisions |
| Completion
time |
6 to 9 months |
3 to 6 months |
| Who
gets interim loan? |
Negotiable |
Builder |
|
Who
owns home during construction?
|
Whoever gets the interim
loan |
Builder |
| Change
orders |
Limited only by your
checkbook |
Limited |
| Landscaping |
Custom designed |
Standard package |
| Wall
finishes |
Custom colors, faux
finishes, wallpapers and wood paneling |
Limited selection of paint colors-one
color for entire house |
| Floor
coverings |
Your choice of custom
(i.e. tiles, slate, marble, wood) |
Limited selection of
base grade carpet and vinyl |
| Cabinetry |
Custom cabinetry |
Pre-fab cabinetry |
| Brick |
Usually a quality clay |
Sometimes concrete |
| Roofing |
30-yr. asphalt shingle,
slate tiles, Mexican tiles, etc |
Usually a builder grade
20-yr. 3 tab asphalt shingle |
| Doors |
Wood, iron, glass etc. |
Usually steel embossed |
| Cost
per square foot |
$65 to $300 and up |
$50 to $85 |
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