When deciding whether to purchase or build a new home in the Spokane area, it’s a good idea to evaluate all of your options to determine which path allows you to get the most value for your money. Some of the factors to consider for either alternative are:
- The size of the lot
- The square footage of the home
- Amenities and finishes
- Local property taxes
- Neighborhood features
If you’re committed to being in a specific school district or just prefer certain neighborhoods, you can narrow your search and compare fewer options. On the other hand, if you are flexible about the location, there are a lot more factors to consider.
Maximizing a New Home Purchase
According to a recent article in The Spokesman-Review, the Spokane housing market is hot. Homes are selling quickly, inventory is low, and prices are higher than they were just one year ago. The article states, “The median sales price was $204,900 in March, a 9.2 percent gain from $187,500 in March 2016.” What you can get for your money is changing quickly if you plan to buy an existing home.
Some of the ways you can gain an edge when purchasing a new home are:
- Moving farther away from trendy real estate areas
- Doing renovation work yourself
- Getting preapproved for a mortgage so that you understand your budget limits
- Quickly acting on listings and making fast decisions
Buying an existing home often feels like the path of least resistance. You go through the purchasing process and after a couple months, you get the keys to your new house. Of course, older homes can come with unexpected surprises, especially if you plan to renovate. Even homes that were built in the last few decades have aging appliances and the wear and tear that comes with all existing homes.
Optimizing the Budget for a New Build
When evaluating your budget for building a new home, you must consider the costs of the land, developing the site, and the labor and materials for the house. In the Spokane area, site-development costs can be two to three times more in rural areas than they are in town. Of course, this must be balanced with the cost of land. For example, a small lot in town might sell for $35,000 to $40,000, while you might be able to get multiple acres for the same price in a rural area. The ideal location will depend on your lifestyle and budget constraints.
Some of the ways you can get more for your money when building a new home are:
- Finding land with an existing well to eliminate drilling and installation costs
- Purchasing land with a mobile home that already has utilities connected
- Working with skilled friends and family who can help with building tasks
- Doing work like painting and light landscaping yourself
The more time you can invest in building your new home, the more equity you will build and the less the out-of-pocket costs will be.
With a limited inventory and a competitive market, building a new home might actually be the most cost-effective solution. The overall timeline may or may not be longer, but unlike the house-hunting process, it is predictable. When building a new home, you can expect the process to take about a year. Purchasing an existing home is indeed faster but only if you are able to find the right house, in the right neighborhood, and at the right price. With so much competition in the area, you also have to be the highest bidder.
If you are considering building a new home in the Spokane area, contact the Adair Homes Inland Northwest office to schedule a free consultation. We’ll work with you to determine which custom home plan is right for your family and your budget.