The current demand for new houses is “rocking” but the supply is “reeling.” Potential homeowners have had to weigh the benefits and drawbacks of buying an existing home over building one. Not only that, they had to consider if they want to hire a custom home builder or not.
Many post-World War II generations have considered owning a house an integral part of their “American Dream.” The “perfect storm” of circumstances has made the American Dream seem more like a nightmare to homebuyers. These include historically low mortgage rates, the largest ever population cohort – those born after 1980; starting families; a pandemic which fundamentally changed how families work and educate their children; and low yields on traditional investments that encouraged residential real estate investment. These conditions combined created a demand for houses that was rarely seen.
Do you have thoughts about building a home? Ask your custom home builder Myrtle Beach to explain the benefits of brick construction.
Custom Home Builder: Construction Trends
Multiple sources including this one indicate that homebuilding trends have changed. This has had an impact on both the “cost-vs.-value” of new homes and older homes. “It was once that new homes were more expensive than older homes. But that is not always true.
“Location is a major factor, since real estate in urban areas tends to be more expensive than in the suburbs. Single-family homes located in inner-city neighborhoods in desirable areas are more likely to be built before those in the suburbs. They also tend to cost more than the entry-level homes being constructed in new subdivisions out of the city.
“As land costs have increased, so has the size of the new lots. However, houses are growing larger which leads to smaller lawns as well as closer neighbors. As single-family homes fall, condos and townhomes are rising.
“Houses are being built differently than they were a decade ago. Although building codes are more strict, construction practices have improved. Construction today is often more affordable because it’s cheaper to use 2×4 pine framing, engineered wood, or 2×6 redwood over 2×6 and to use plaster instead of plaster.
Brent Snyder, a home construction expert, has been in the industry for many years. He has never faced as many problems on either side of this “build new” dilemma.
He said, “It’s insane.” “I can understand why buyers are frustrated and confused. It’s a consolation to note that builders and agents in real estate are also struggling.
He stated that while I believe the benefits of a newly built home outweigh the disadvantages of a “used” home, he added, but “the delay in building materials, such as the lead time for new Windows, is 24 weeks. This has forced many homebuilders into a revision of their approach to finalizing a price for a home.
I have heard that builders are avoiding a formal contact at project start. Instead, they take a deposit from clients and offer a final price and contract after the Sheetrock phase is complete. Prices for the phases that are built after Sheetrock has been installed can be volatile.
“Real estate brokers are friends of mine and have shared another challenge in buying an existing house. “Bidding wars” have become a standard procedure for existing homes, regardless of their condition. This is why first-time buyers who don’t know much about the process rarely get the home they want. This strongly suggests that buying an existing home is more secure than building one.
Comparison of Buying vs. Building: The Pros and Con’s
It’s a good idea for a family to consider whether they want to buy an existing home or build a new one. It’s time to create a list. This website explains that buying and building have their benefits and disadvantages.
Beautiful brick home
Benefits of purchasing an existing house
Old-world Construction: Some older homes have stood for many decades, while others have been there for hundreds of years and survived many storms. They were constructed by skilled craftsmen who paid attention to every detail.
Larger yards: Builders built larger yards when land was more affordable, allowing for ample space to house garages and yards.
Established Neighborhoods: It is unlikely that zoning changes will occur in older neighborhoods. Older homes have more stable surroundings, mature trees, and landscaping. They are also more likely to be closer to the city center.
There are some drawbacks to an older house
More Maintenance: There’s always something you can do to fix an aging structure.
Plumbing failures: Older homes had galvanized pipes. These pipes are more rusty than modern copper pipes and will eventually fail to function properly.
Electrical Safety: Many older houses weren’t built in accordance with current safety standards.
Smaller spaces: Closets and cabinets are often smaller than garages or garages. There is also less space.
Modernizing appliances: Other than HVAC systems, trendy or functional updates can include expensive kitchen and bath remodeling.
More expensive: The premium for a central location and the “charm” that comes with vintage and classic homes are more costly.
Inadequate insulation will lead to (often) higher utility costs
Benefits of building your own home
Brick homes require less maintenance. The warranty on new construction is expected to last for at least 10-20 years. Therefore, homeowners should not expect to replace their roof or fix fixtures for the next 10-20 years.
Modern conveniences: New constructions now include built-in refrigerators, wine coolers, microwaves and fridges. Many newer homes have primary suite baths, media and workout rooms, as well as networked wiring.
Energy Efficiency: New appliances use less energy. Newer homes have insulated walls, ceilings, floors, and ceilings. Brick construction can help to increase this efficiency.
Built to Code: The municipal permitting system is well-established, and the building codes are constantly updated.
It’s more affordable: A new home will likely be less expensive per square foot than an older house in the same area.
Greater Average Square Footage
There are some drawbacks to building a new house
Construction Material and Appliance Delay – Whether it’s brick, wood, or synthetic materials, the demand is higher than the supply. Appliance manufacturing is still struggling to catch up with COVID delays. This shortage has an impact on building schedules.
Increased Lot Prices: Myrtle Beach home builders are facing fluctuating land prices and are forced to offer higher lot prices for buyers.
Cookie-Cutter Floorplans: This is a matter of preference. However, some people feel mass-built homes are too similar and lack individuality.
Immature Vegetation – Trees can take many years to grow so it is common for newer homes to use shrubs, cacti or other quick-fix landscapes.
Unpredictable House Settlement: Although all houses settle into their foundations over time, older houses may have done so already. Cracks in foundations, walls and door frames can be caused by settlement.
Longer commutes and greater distance from the City Center: If one works in the City Center, it is likely that there will be a longer commute.
The Best Choice
William Shakespeare said that “discretion can be more than valor” for Falstaff. This famous verse was written in 1596. However, today’s homebuyers are bravely chasing a chance to purchase a home. For those looking for a new home, discretion or waiting for the economic factors to improve might be the best option.
It is possible to stay put in your current home if it is feasible. You might consider starting a few home improvements while you wait for the housing market’s recovery to settle down. Here are some ideas for indoor and outdoor remodeling projects if you don’t want to wait to purchase a home. If history is any indication – and it is always an indication – the next year will see a greater number of existing and new homes, making the American Dream more affordable and less nerve-wracking.
Dawol Homes is a trusted company when it comes to custom home building. Talk to an expert now.