The Pros and Cons of Building a Custom Home in Albuquerque
Currently, prospective homebuyers are facing a challenge due to the limited amount of properties on the market. Building a custom home is an excellent solution to this issue, and there are numerous other benefits to consider.
It is essential to consider the potential drawbacks of any decision. Whether the advantages outweigh the disadvantages depends on your individual circumstances and preferences. Here are some of the benefits and drawbacks to be aware of before making a choice.
The Pros of Building a Custom Home
When you’re thinking about building a custom home in Albuquerque, the following are some of the upsides.
You Can Get Exactly What You Want
When you purchase an existing home, you may have to compromise on certain features. You may be able to make changes or updates later, but you likely won't get exactly what you want. On the other hand, when you build a custom home, you can design it to perfectly suit your lifestyle and taste. However, be mindful that you don't create a home that is so unique that it will be difficult to sell in the future.
You Can Customize Your Location
When you choose to build a custom home, you are not only getting all the features you desire in the house itself, but you are also gaining the opportunity to select the perfect location. Perhaps you are drawn to the idea of purchasing land with no neighbors in sight, or you may prefer a stunning view of the Sandia Mountains. Either way, building a custom home gives you the freedom to make the decision that best suits your needs.
You’ll Have Less Maintenance
If you purchase an existing home, you are likely to spend a significant amount of your free time and money on upkeep and repairs.
However, when you buy a brand new home, you can save thousands of dollars annually on maintenance. You won't have to spend your weekends making repairs, and you can use that time to do other activities.
Of course, you will still need to take care of certain tasks, such as lawn maintenance, but this will be much less of a burden if you bought an existing or older home.
The Cons of Building a Custom Home
It’s not all upsides when it comes to building the home of your dreams. Downsides to think about include:
It’s Expensive
Constructing a custom home in Albuquerque will almost always be more expensive than purchasing a comparable existing home. You will need to collaborate with a builder, and labor costs will account for approximately 40% of your total expenses.
In addition to labor, you will be responsible for paying for permits, design fees, and the building materials. You can reduce your costs to some degree depending on the materials and finishes you select, but it is difficult to get labor costs much lower than the initial quote.
Construction Loans Are Challenging
When you build a home, you may need to secure a construction loan. It is important to note that construction loans typically require a 20% down payment, and lenders consider them to be higher risk investments.
To secure a construction loan, you will need to provide the lender with the same documents you would typically provide when getting a traditional mortgage. Additionally, you will need to provide plans for your project, estimated costs, and information about land value.
You must also give the lender a signed contract with the plans for your project, specs, and the timeline for construction. With the right preparation, you can confidently secure a construction loan for your home.
Building Can Take a Long Time
Ultimately, you must consider the fact that constructing a custom home can be a lengthy process. Even a basic, small house will take a minimum of three months to complete. If you are constructing a larger home, it could take up to a year or more to finish.
Additionally, there are a variety of potential delays that could arise, such as inclement weather or difficulty making decisions on certain aspects. Therefore, it is important to be prepared for the possibility of a lengthy construction period.
If you want expert advice to help you decide if you should build or buy, give the real estate experts at the Sandi Pressley team a call. They will prove to be a valuable resource in your journey to live in the home of your dreams in Albuquerque.
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