Top 3 Reasons Why Now Is A Great Time To Design + Build A Custom Home
1. Design + Build is Easier Than You Think
Misconceptions about the demands of building a home are common. On the financial side, though there are many particulars that should be discussed with a finance professional, most families find the process to be more simple and affordable than anticipated. Furthermore, the lender and your design-build team will manage all the minutiae of funding the build along the way. Depending on the approach:
- Loans can be structured as lower expenditure, interest-only with no principal due for 12-24 months
- An owned lot increases the amount you can borrow and acts as equity for reducing the loan down payment
- Mortgage insurance can be eliminated
- Property taxes are reduced over the time of construction.
While there are several moving parts in a build – evaluating lots, working with lenders, conceptualizing spaces, choosing finishes, evaluating green options and managing expenses – a firm like Scott Simpson Design + Build becomes your frontline, representing your interests and fighting for your vision and budget all the way from permitting to move-in. There is nothing more effective than precise and proven guidance from a single team of licensed architects, builders, project managers, subcontractors and suppliers to make your unique vision into a beautiful reality for your family.
2. “Perfect” Existing Homes are Hard to Come By
According to Freddie Mac, housing prices nationwide have, on average, doubled in the last 20 years. Listing prices are higher than a year ago and inventory goes quickly in desirable areas. Families that are looking for specific home features will be hard-pressed to find modern elements such as dedicated working and learning spaces, home gyms, energy-efficiencies, ample outdoor space or accommodations for aging in place in an existing home.
3. The Cost of Money and Building are Both Lower than Usual
The lowest interest rates in history are allowing extremely low-cost borrowing. For context, the previous generation was paying roughly three times the current interest rate. A fixed-rate secured now will reduce a family’s monthly expenses for a long time to come!
With fewer builds underway in the past few months, those involved in building custom homes are eager for new business and, more than likely, willing to negotiate on price. Labor has become more plentiful, more responsive and less expensive. Building has been deemed an essential part of the economy and pandemic protocols set by The Construction Industry Safety Coalition (CISC) are not difficult to manage during a build so the pace of construction should be close to normal.
Counter to another misconception – there are actually several distinct advantages to starting a build in the colder months. With lower volumes of projects, the builds move more quickly and contractors are able to provide extra focus, the weather stress-tests each material in place and you can enjoy a warmer month move.
Overall – as unusual as it may seem – now is a really great time to build a new home.
This SSD+B article originally ran in Chicago Social.