Oregon Luxury Home: Should I Build or Buy My Luxury Home?
So, you’ve been thinking about moving or investing in a second home in an incredible location. Should you build your luxury home, or buy it? Like everything else, there are pros and cons to each choice, and ultimately, your decision to build or buy depends on a few key factors. Let’s dive in!
Pros of Building a House:
When you build a house, you are designing it to tailor to your needs. There is no more “Well, I like this, but I just wish the house had…” When you build your own home, every space and detail is specific to your lifestyle and habits, with the space allocated to your priorities.
When building your own home, you can plan for the future. This can mean designing for aging-in-place with details such as a first-floor ensuite bedroom, or doors and hallways that are wheelchair friendly, or it can include pre-wiring for solar or wind power utilization later. Planning and including these design elements means that your custom home is a place you’ll love living in for years to come.
Building your home means that you have full control over the materials, which translates to both design creativity and control over decisions that can affect the total cost. For instance, if you would like a board-formed concrete chimney, it can be built (Just check out our photos from Little Something Special!), or, if you’re looking for a more cost-effective building method, you can choose stick-framing over ICF. With material technology changing over the years, it’s easier than ever to build both efficiently and effectively without losing personalization.
Lower energy and maintenance costs
Energy savings are one benefit of newly built homes, compared to older houses, because of the new materials utilized during construction. You can also work with your builder to implement technology that increases air quality and energy efficiency- for instance, using ICF with a great HVAC or HRV system.
Custom luxury homes are built and designed for generations. They are functional works of art that are specifically designed and crafted for you and your family, for years to come.
When you build a house, you control every step and every decision that goes into it. You can design the space to include elements that you love while leaving out those that you don’t. You control the outcome. This is in sharp contrast to trying to buy a house where there are other bidders and parties involved, and where you don’t know the full history of the home.
Better resale value
If you do decide to sell your custom home later, it will bring a higher value than many other houses because of the quality construction, building materials, finishes, and newer construction.
Cons of Building a House:
Building a custom luxury home is not something that happens overnight. The entire process normally takes over a year and can take longer, depending on the product and labor availability, weather, change orders, and more.
There is a price to pay for the control and customization of building a house, and that is effort. With the hundreds of decisions involved in the process, ranging from picking out paint colors to choosing building materials, the owner needs to be able to make and commit to their choices. However, owners won’t be doing this alone- there will be help from professionals along the way!
Because of the customization and administration required for the process, building a custom home can be more expensive than buying a house.
Pros of Buying a Luxury House:
There aren’t nearly as many decisions to make and logistics to juggle when buying a home. Although this doesn’t mean that buying one is always fast, easy, and painless, it is less of a complicated process than building because there are fewer moving pieces and timelines in place.
Cons of Buying a Luxury House:
Customization, (or Lack Thereof)
Houses are built for the average person and are generic to appeal to the widest range of customers possible. This means that if you are specific about your spaces and design, you’ll have to remodel after buying.
If you do decide to customize your house, this will lead to additional costs, time, and effort. Additionally, if the alterations are in-depth, you may need to make a cost-analysis decision regarding renovations over building something new.
Market Pricing and Availability
It’s no secret that material prices and availability have been wildly fluctuating the last few years, from lumber skyrocketing to appliances seemingly disappearing from the market. As a result, construction allowances have had to change. At the same time, the housing market exploded and it became rather common for houses to sell quickly because they were bought in cash for a value over the asking price. These market conditions can influence if you want to buy or build a luxury home. Another thing to keep in mind is that even when market conditions may seem less than ideal, there are still opportunities. For instance, building a house during a recession may mean that material and labor prices are lower.
Location can play a huge role in the build vs buy debate. Factors that may influence this are if you already own a lot, if you want to be in a specific spot near schools, family, etc, the pricing for land lots, and more.
No matter if you build or buy, you need to be able to trust the people you’re working with. Because both processes require so many decisions, coordination, communication, attention to detail, and more, builder/client and realtor/client trust is crucial in helping the project move smoother. A great builder will be able to guide you through the process, pointing out recommendations from home design, to vendors, and more. Similarly, a great realtor will respect your must-haves, budget, and will discuss the market and specific houses with you, all while guiding you through the home-buying experience.
Both building and buying run the risk of having hidden costs. When building, you need to look beyond the sticker prices and factor in installation costs. Similarly, with buying, home inspections and fees can sneak up unexpectedly. Builders and realtors can better predict final prices and hidden costs, so, to minimize them, clear communication between all parties is a requirement.
When you build a house, you are responsible for having the lot landscaped. This is both an opportunity and another area that requires management and decisions. In contrast, when you buy a house, landscaping is more often than not already implemented and may be altered at your leisure.
A great builder will be conscious of your valuable time and act accordingly. They’ll ensure that they are organized and come to the table prepared with all of the information and knowledge that you need to successfully and smoothly navigate the process. The same rings true of a great realtor. The biggest factors to consider when deciding to build or buy a luxury home are if you are willing and able to make the investments necessary: mentally, financially, and with your time.
Do you still have questions about buying or building your luxury home? Give us a call at (541)797-7927 and stay connected by subscribing to our monthly newsletter!