For me being in the design/build industry for over 10 years this is a “no brainer”. You are probably thinking, sure that’s easy for you to say since you are a builder and that would mean more business for you!

Well, I wish life were this simple and we all just got what we wished for. You just make a statement and things would just turn in your direction and happen. The reality is that because I have been remodeling homes for that long, I know first-hand what our client’s biggest frustrations are and how much money they are willing to invest to “fix it”.

“Remodeling a home is expensive; that is a fact. It costs more to remodel than to build new; that is also a fact.”

Now that I have cleared the air and you see that the motif is not a personal one but one of common sense and time sensitive, let me explain why “Now” is absolutely the best time to build your dream home.

Consider the following conditions:

1. It costs more to remodel than to build new
When you look at remodeling a home or building one from the ground-up the cost per square foot is greater for remodeling. When you remodel, you need to demo first what’s there, make the appropriate changes and the re-build. This 3-step process makes it more expensive than building new. Additionally, you may not be able to get exactly what you want since you are dealing with existing conditions.

"A key factor fueling the gains is a gradually improving economy, which has increased the number of people looking for homes. At the same time, fewer homes are available for sale. The low supply is helping push up prices." Industrial Distribution, Nov. 20, 2012

2. Lowest interest rates on loans and mortgages
The interest rates are at an all-time low and will most likely not get any better any time soon. This means that if you have good credit, a healthy down-payment you could borrow to build the house of your dreams and pay less in the long-term than before. The cost of owning your custom home is more attractive than ever!

“In its latest construction forecast, the NAHB on Wednesday stuck to its guns that “underlying fundamentals” such as low mortgage rates, decent economic growth, and pent-up demand for housing will drive double-digit percentage increases in home starts this year and next, and reverse catastrophic declines in new and existing home sales.” Builder, April 2012

3. Lowest purchasing cost of land and tear-downs
The home prices have gone down in the last years and will most likely not dip any further. Homes have lost 20-40% or even more in some areas of their assessment value. This means that now you need less money to buy the same size property in the same location than before. This opens up a new opportunity for buying a tear down and building new in an area where you probably could not afford to live before, but now can!

“The total number of housing starts in December 2012 was 12.1 percent better than the November estimate, and 36.9 percent above the total recorded in December 2011.” CePro, January, 2013

4. Lowest building material and labor costs
Since the economy is still not fully recovered and unemployment is still high and sales are down, materials and labor costs are down too. This means that you will pay less for the same materials and labor that you would have several years ago. This opportunity allows you to build a dream home with all the luxuries you had contemplated but could not afford before – now you can!

“The housing market has regained some footing after a historic collapse that helped push the economy into its worst recession since the Great Depression.” CNBC, January, 2013

5. Affordable Sustainable Products – green design is not a luxury anymore
There is a growing trend and need to use sustainable and energy conscious materials in homes. Several years ago, these options were out of reach for most of us, however, with the economy down, people get creative. The green design experts and manufacturers are making huge efforts to make these materials more affordable and we can use them more freely in new homes. Being green is more affordable today than ever before and it will save you money in the lifespan of your home. An energy-efficient home saves money in the long-run!

“Think building an energy-efficient home requires a higher budget? Not necessarily, according to panelists at a recent International Builders’ Show session, who told attendees that better-performing houses can actually improve a builder’s bottom line.” Ecohome, January, 2013

6. “Less is More” concept – bigger is not always better.
When you build your own home, you can make key decisions that will make you money (save you money) in the long-run, such as:

  • Where you want to live - location

  • How big or small you want the house to be - size

  • What level of materials you want to use – build quality

  • What design or style you want the house to have - design

7. “Multi-generational living” concept – plan for the future.
Trying to retro-fit your home after the fact to fit an in-law suite, a main level master suite or a walk-out basement can be an expensive experience. We have seen many of our clients wanting to do this because they don’t have a choice. With escalating health care costs, people are more and more interested in having their parents live with them if possible. By building your custom home today, you can plan for this in the design phase as part of the master plan of your home and then execute it when you need it. This solution alone with save you thousands of dollars in the long-run!

“Because a growing number of homeowners are expecting to accommodate a larger family in the future, those surveyed said they plan to adjust their living space by either renovating their existing home or purchasing a new home,” PulteGroup’s news release said. “Seventy-two percent of those with aging parents currently living with them or planning on it in the future will renovate or purchase a new home.” Builder, October, 2012

If you look at all the points explained above, they all have one thing in common: They save you money! Well, there is no better time than today to think about doing something that will save you money tomorrow. Don’t you think?

If this is something you have been thinking about and you would like to learn more about how an architect-builder can be the right solution for you, give us a call or send us an email. We would be delighted to sit down with you and explain our unique "fix construction cost" process.