Should You Build, Buy Or Renovate?
For homeowners or renters getting spring fever and turning a watchful eye toward the MLS listings, there are many options. With the housing market in its current condition, the prospect of building or buying can be very unnerving. But if your determination and finances are there, now just may be the time to go for it. Here are some good reasons to get started, relevant to the housing market’s current condition:
Building
Because of the recent housing slump, the cost of materials, supplies and labor have decreased significantly. Contractors will be oh-so-ready and willing to pay attention to you and your house-building project because new construction starts are down across the country. The cost of land will also be down, and anything you do now will only increase in equity.
Buying
As a homebuyer, you are still in the catbird seat, which is always a great place to be. It’s not too late to exercise your negotiating powers and score a great deal. Act now to get more house and more land for your money — not to mention more home equity in the future when the market recovers. Even realtors fees will be negotiable because, like contractors, their workload has decreased lately.
Stay put
If you are a homeowner, you may be hesitant to part with your investment during this turbulent time. It’s like selling stock in a perfectly stable reputable company just because the stock market is down. If you wait long enough, it’s going to recover and your investment will be valuable again. All local real estate markets differ and yours might not be so bad. But if it looks as though you stand to lose money on your home, whether you’re upside down in payments or your home equity has decreased significantly, you may want to just stay put. Consider refinancing or waiting for the market to improve, and put any extra money you can scrape together toward paying down the home loan or fixing up the house and increasing equity (especially bathroom and kitchen remodels).
