Pros & Cons of Building A New Home

Pros:

• Customization: Building a new home allows you to customize it according to your preferences. You can choose the layout, materials, finishes, and amenities to suit your needs and lifestyle.
• Energy Efficiency: New homes often incorporate the latest energy-efficient technologies and building materials, resulting in lower utility bills and a reduced environmental impact.
• Modern Features: You can integrate modern features such as smart home technology, energy-efficient appliances, and advanced security systems into your new home design.

• Warranty: Most new homes come with warranties that cover defects in construction and materials, providing peace of mind to homeowners.
• Lower Maintenance: Since everything in a new home is brand new, maintenance and repair costs are typically lower in the initial years compared to an older home.
• No Renovation Required: You won’t need to renovate or update the home for quite some time, saving both time and money in the long run.

Cons:

• Cost: Building a new home can be more expensive than purchasing an existing one, especially if you opt for custom features or high-end finishes.
• Time: Construction of a new home can take several months to over a year, depending on various factors such as weather, permits, and contractor availability, which means you may have to wait longer to move in.
• Location Limitations: Finding suitable land for building a new home in a desirable location can be challenging, and it may require compromises on factors such as commute time, school districts, or neighborhood amenities.
• Resale Value: Initially, the resale value of a newly constructed home may not be as high as that of established homes in the same area, as it lacks the history and established neighborhood reputation.
• Unknown Neighborhood Dynamics: When building in a new development, you may not have a clear idea of the neighborhood dynamics, such as noise levels, community amenities, or future developments, which can impact your satisfaction with the location in the long term.

Pros & Cons Of Buying An Existing Home

Pros:

• Immediate Availability: Existing homes are typically ready for occupancy soon after the purchase process is complete, allowing you to move in quickly without waiting for construction.
• Established Neighborhood: Existing homes are often located in established neighborhoods with mature trees, amenities, and community dynamics already in place. This can provide a sense of stability and community.
• Known Features and Layout: With an existing home, you can see exactly what you’re getting before you buy. You can evaluate the layout, size, condition, and features of the house in person.

• Negotiation Flexibility: There may be room for negotiation on the price of an existing home, especially if it’s been on the market for a while or needs some updates or repairs.
• Less Decision-Making Stress: Unlike building a new home where you’re making countless decisions, buying an existing home involves fewer decisions since the house is already built.

Cons:

• Repairs and Maintenance: Older homes may require more frequent repairs and maintenance compared to new homes. You may encounter issues such as plumbing problems, electrical issues, or the need for a new roof or HVAC system.
• Limited Customization: While you can renovate an existing home, there are limitations to how much you can customize it compared to building a new home from scratch.
• Energy Inefficiency: Older homes may lack modern energy-efficient features and insulation, resulting in higher utility bills and a greater environmental footprint.
• Hidden Problems: Despite inspections, there may be hidden problems with an existing home that only become apparent after you’ve moved in, potentially leading to unexpected expenses.
• Outdated Features: Older homes may have outdated features, layouts, or design elements that don’t align with modern preferences or lifestyle needs, requiring renovation or adaptation.
• Less Warranty Coverage: Unlike new homes that often come with warranties, existing homes may have limited or no warranty coverage, leaving you responsible for any repairs or replacements.

Which Option Is Right For You?

Deciding whether to build a home or buy an existing one is a significant decision that requires careful consideration of various factors. Here’s a step-by-step guide to help you make an informed choice:

Evaluate Your Needs and Preferences: Consider your lifestyle, family size, future plans, and must-have features in a home. Determine if customization and specific design preferences are crucial to you or if you’re comfortable with the features of an existing home.

Assess Your Budget: Determine your budget for purchasing a home, including potential renovation or customization costs for an existing home. Obtain quotes from builders and compare them with the cost of existing homes in your desired location.

Research Locations: Explore different neighborhoods and consider factors such as commute times, school districts, amenities, and community atmosphere. Determine if suitable land is available for building in your preferred location, and assess zoning regulations and building codes.

Consider Time Frame: Evaluate your timeline for moving into a new home. Building a home typically takes longer than purchasing an existing one, so consider your patience and flexibility regarding the move-in date.

Consult with Professionals: Speak with real estate agents, architects, builders, and financial advisors to gather insights and advice tailored to your specific situation. Get estimates for construction costs, potential resale values, and market trends in your desired location.

Visit Model Homes and Open Houses: Tour model homes to get a sense of the design, features, and quality offered by builders in your area. Attend open houses for existing homes to see firsthand what’s available on the market and to compare with the prospect of building.

Consider Your Long-Term Goals: Think about your long-term plans for the home. Are you looking for a forever home, or do you anticipate moving again in a few years? Evaluate how building or buying an existing home aligns with your financial goals, lifestyle aspirations, and future plans.

Trust Your Instincts: Ultimately, trust your instincts and choose the option that feels right for you and your family. Consider factors such as emotional attachment to a custom-built home versus the convenience of buying an existing one.

Erica Garvin

The post Building A New Home Vs Buying An Existing One: What You Need To Know first appeared on Ivy Key Team .

Months Supply of Inventory (MSI) Decreases

The total housing inventory decreased 0.36% to 2,503 existing homes available for sale. Over the last 12 months, this area has had an average of 1,044 closed sales per month.

Average Sale Price Going Up

The Oklahoma market area has experienced some upward momentum with the increase of Average Price this month. Prices went up 2.38% in September 2023 to $300,765 versus the previous year at $293,788.

Average Days on Market Lengthens

The average number of 29.90 days that homes spent on the market before selling increased by 9.30 days or 45.14% in September 2023 compared to last year’s same month at 20.60 DOM (days on market).

Summary

Overall, with Average Prices going up and Days on Market increasing, the Listed versus Closed Ratio finished weak this month. There were 1,423 New Listings in September 2023, down 6.13% from last year at 1,516. Furthermore, there were 1,064 Closed Listings this month versus last year at 1,348, a -21.07%
decrease Closed versus Listed trends yielded a 74.8% ratio, down from the previous year’s, September 2022, at 88.9%, a 15.91% downswing. This will certainly create pressure on a decreasing
Months Supply of Inventory (MSI) in the months to come.

• Hiring A Homebuilder? Here Are 10 Questions To Ask
• February 2024- Oklahoma Market Update
• Building A New Home Vs Buying An Existing One: What You Need To Know
• Mastering Your Money: Insider Tips for Future Homeownership Success
• January 2024- Oklahoma Market Update

The post October 2023- Oklahoma Housing Market Update first appeared on Ivy Key Team .

Write Down The Vision

If you have not done so already write down exactly what your goals are. It is hard to get to where you’re going if you don’t know where you’re supposed to be. When you write down your goals be very specific. Write down your dream home. How many bedrooms does it have? Baths? Does it have an open-concept kitchen? What type of backyard does it have? You can even take the time to draw it out and even create a Pinterest board! The key is to be as specific as you can. Don’t forget to write down a date of when you plan to be a homeowner. Store this in a place where you can meditate and pray over it daily.

Examine Your Current Situation

It is also hard to get to where you’re going if you don’t know where you’re at. If you have not done so already take the time to look over your finances and bad habits. If you are not sure what those are I recommend journaling for at least four weeks. Take this journal with you and record what you spent your money on and how much you contributed to your savings. Also, write down your income and bills that were paid. Perhaps you are driven by emotional spending, this journal will help you to see if you’ve picked up on unnecessary spending habits. In this same journal record your credit score and analyze your credit for any outstanding debts, collections, and/or negative impacts on your credit score.

Form A Healthy Relationship With Money

Practice forming a healthy relationship with money. Know that money will always come and always go. The best way to treat money is to assign a purpose for each dollar before you spend anything. Give yourself enough wiggle room for unexpected costs and don’t forget to give yourself reasonable allowance. Keep reminding yourself that you are working on something bigger, especially in times when you want to spend money unnecessarily.

Gather The A-Team

The biggest part of your success is the team you will put together that will be supporting you through your home ownership journey. If you haven’t done so already I recommend interviewing realtors in your local area. Get a feel for how they work, their resources, and their personality. You will need someone who will check in on you, believe in your vision, and push you even when you don’t feel like it. If they are a savvy realtor they will have a list of lenders, title companies, and other resources for you. This will be your team from start to finish.

Execute Your Plan

Your A-team should have helped you to create a plan to give you a realistic idea of how soon you will be ready to purchase your own home. This plan will involve setting the right expectations for improvements needed so that a lender can approve you for a home loan. Your trusted real estate agent has gone over the requirements needed by the lender with you, analyzed your finances to let you know how much you need to save, and is fully aware of your vision and supports you. He/she is checking in with you monthly to give you a boost of encouragement so that you know you are not in this alone. When creating your plan break it down into yearly, monthly, weekly, and daily if you need to. Do not underestimate the importance of an accountability partner as more people find success with one than with

This is Your Unique Journey

Sometimes when we want something so bad we tend to look over our shoulders at someone else who appears to have exactly what we want. In the age of social media, this is right at our fingertips. Trust that God has something specifically for you and keep yourself focused on your own journey to homeownership. What is meant for you will be for no one else. Continue to do the work and it will be blessed.

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• Hiring A Homebuilder? Here Are 10 Questions To Ask
• February 2024- Oklahoma Market Update
• Building A New Home Vs Buying An Existing One: What You Need To Know
• Mastering Your Money: Insider Tips for Future Homeownership Success
• January 2024- Oklahoma Market Update

The post What To Do Now, To Buy A Home In 2024 first appeared on Ivy Key Team .