| Deciding whether to build or buy |
STEAMBOAT PILOT & TODAYPeople ready to own a home in Steamboat Springs are always faced with a tough decision - whether to buy an existing home or find the right piece of land and build a home. There are benefits to either route. But what most motivated buyers want to know is which one will be the most economical and what will give them the most satisfaction. For buyers who can afford to get into mid-level and higher homes in and around Steamboat Springs, on paper, building a home can appear to be less expensive. However, unforeseen costs during construction and the buyer’s personal situation must be considered, said Randall Hannaway, an owner of Colorado Group Realty. “Building is a tedious and tenacious process,” Hannaway said. “But it also can be a rewarding one.” Technically, it is less expensive to build. Hannaway explained that if two similar properties were for sale, side by side, except one had a home built on it and one was vacant land, generally, it would be less expensive for the buyers to purchase the empty lot and build a home similar to the neighbor’s. However, that is in an ideal world, he said. Who knows what can be underneath the ground, for example, that could throw costs off. He recalled seeing a $100,000 difference between the foundation costs on the two adjacent properties, because one of the lots had large boulders to remove while the other didn’t. “No matter how well organized and well planned you are, there are always unforeseen costs,” Hannaway said. The amount of time the owner can spend on the construction site also plays a role in building, too. In fact, it is not uncommon for residents to acquire property in Steamboat Springs then spend months and years of free time building their dream homes. “If you know what you’re doing, or if you have friends that know what they are doing, it will be more inexpensive,” Hannaway said. If the owner is banging nails and being a major player in the construction and planning, significant cost savings can be achieved. However, the owner also can be rudely awakened by how time consuming, and cash consuming, the process can be. Someone who plans to work on building his or her own home must consider the financial impact of doing so. Is there time off from work that has to be taken? Is the family renting while their new home is being built? Is it an out of town buyer who is paying to travel to the Yampa Valley frequently to build the home? All are indirect costs associated with building your own home. Buying a home that is already built often is less expensive - and more practical - when such indirect costs are factored. But the homebuilder has two important perks that come from successfully weathering a construction process. “You come closer to getting exactly what you wanted,” Hannaway said. The first great perk is that the house is built around what the owner wants. If it works out, the owner can have an influence on every nuance of the home. The second is the reward of seeing the project through, especially if the buyer has a hand in the construction process. “It can be very rewarding,” Hannaway said.
|
|
-
Price: $ Interest Rate: Down Payment: $ Mortgage Term: Payment: $ Mortgage calculator is provided by Steamboathomefinder.com
All real estate advertising is subject to the Federal Fair Housing Act of 1968 which makes it illegal to advertise any preference, limitation or discrimination based on race, color, religion, sex, ancestry, sexual orientation, familial status, disability or national origin, or an intention to make any such preference, limitation or discrimination. This Web site will not knowingly accept any advertising for real estate which is in violation of the law. Our viewers are hereby informed that all dwellings advertised on this Web site are available on an equal opportunity basis. |
