Building on your own property used to a pipe dream for many Americans, but a down economy has led to low land prices throughout the United States. That means many are able to buy land and start building their dream home without searching for the best deal. There are many deals to be had, even in affluent areas that usually commanded top dollar for land to develop. The construction industry went through a dry spell after the market crashed in 2008. Now there’s a building boom that’s getting the industry back on its feet.
Long term contracts for builders
Contractors and builders make the bulk of their money from long term contracts that put them in business for anywhere from six months to a year. Odd jobs and small projects bring in money too, but the majority want to land long term projects that will take awhile to complete thus keeping their doors open. This guarantees work for awhile and they can work on securing other contracts during that time. People building homes work with builders for at least six months and often much longer.
Depending on the schedule of the contractor and the funds the home owner is working with, a home can take as long as a year and a half to build. There are many things that come into play such as how large the property is, electricity and plumbing issues and the weather. Most contractors schedule with time allotted for weather snafus, but if you’re in an area that experiences heavy rain throughout the spring and summer, you may end up tacking a month or two onto the building phase of a new home.
Dramatic price decrease in land
When we say that land is cheap, we mean cheap. Land that went for $100,000 or more is now available for a mere $35,000. Many people know what they want in a home. They may see houses that pique their interest when exploring the market, but they don’t always want to take on the renovations to make the house ideal for their situation. Building means the house is exactly what you want and suited for your needs. You may have one child, but plan on expanding the family in the future.
Building a home means you can situate rooms and the layout in a way that fits your growing family and any plans you have for the future, such as a home office or gym. These personal touches can make your home perfect and for the price of land, you’re able to get exactly what you want.
Long term same house home owners
Once the market bottomed out, we’ve seen a decrease in people buying new homes every 5-7 years, which used to be the average. Now people want to buy and stay in their homes. If work and other life obligations permit, they will stay in that home until they have to move. This is bad for home owners looking to sell homes, because financially it makes sense for home owners looking to buy to examine the price of land plus building. In many cases, this comes out costing the same or slightly more than buying an existing home, only you’re able to customize the space to your needs.