I have personally bought and sold dozens of homes. Our family has moved 7 times in 12 years. That may sound miserable because moving is not fun.
There is something about the psychological process of moving from ‘HOME’ to a new ‘HOME’ that is slightly traumatic.
What I have discovered is when you move you are losing your ‘HOME’. Even though it is temporary that feeling of loss is so great it causes pain. Daniel Kahneman won a Nobel Prize for his thoughts that pertain to this subject. He called it Loss Aversion.
We as human beings prefer avoiding loss MORE than acquiring gain.
Simply put you will do MORE to prevent change to your housing situation than you will to pursue a new home that will be better.
I had to point this out before I started talking about building a new home. Because in order to build a NEW home that is exactly what you want. You have to realize you won’t do it. Your mind will play tricks on you and try to get you to stay where you are.
How to build your dream home.
There are two ways to get a new home…Pre-sale or Custom.
Pre-sale construction is homes built and funded by builders. The builder owns the lot and has chosen the home design. There is a price already established because they have built it before. The advantages of this type of new home. You can still pick the ascetics like flooring, cabinets, lighting, appliances, and paint colors. You can’t however, change the floor plan. So, you need to find a floor plan you like.
The price is already determined and you can get into a new home for as low as 3.5% down.
They are easy to find. Here is a link to all of the new construction being built right now in North Central WA.
Custom Home Construction – Custom home construction is where you purchase a lot, design the home, and hire a builder. This is the most expensive way to build a home. But, the only true way to get what you want. This requires the most cash (capital). Expect to pay 25% or more down to build custom.
One of the biggest questions I get is how much per square foot? It depends on the style, lot, and choices of materials. I would budget for $175 – $250 a square foot for good quality fixtures. For high end $200 – $450.
For a nice 2000 sq. ft. rambler you should plan on $400,000 for the construction plus the lot purchase ($100k).
To build custom start searching for land/lots. That is the most important thing. Find the land first.
I’m currently building and we purchased the land 4 years ago. So, to do this right you need time.
To explore deeper into how to build a new home contact our team and we can guide you.