Sandy Gordon Newsletter - November 2009

Should you buy a new home or an existing home?

The Champaign Urbana housing market continues to bounce back from the housing slump that struck the entire nation. September home sales increased -- in large part, due to the $8,000 tax credit new buyers have this year. With or without a tax credit, home buyers have several considerations to make when looking to buy or build a home.

Approximately 21% of home buyers purchase new houses in a given year. The rest buy existing homes. But that number rises or falls depending on the amount of new construction in a given area. Buyers should consider factors, including cost, developer stability, housing appreciation or depreciation, and general lifestyle choices.

Building a Home vs. Buying an Existing Home

The cost of new construction typically outweighs the cost of purchasing an existing home. New construction comes with the burden of planning. When buying an existing home, it's not unreasonable to bid, sign, and move into it within a month's time. Of course, new construction takes time, planning, bids, architectural designs, construction stages, preparation, utility hassles, zoning, lot purchase, and much more. A good developer will assist with many of the preparations of your dream home, but be sure to compare their experience against other qualified teams.

The Champaign Urbana community does see a good deal of new home construction -- it has been in a slump, but it should return relatively fast. Many of the new home projects are prepared by developers in new areas, typically on the outskirts of our cities. These new neighborhoods may be bare or even under construction for a period of months to years. It might be a while before the entire neighborhood has fleshed out and stood up on its own. A new home equals a new neighborhood. It can be a great way to meet new individuals and form a social alliance with other new home buyers. On the other hand it can be taxing and also affect the appreciation of the home you purchase. Be sure to know how long you plan to stay in your home and determine whether the construction around your lot will make a difference in relation to your time spent there.

It is vital when building a brand new home to find a safe, reliable developer. In this economy, we have seen the pitfalls of poor management. Businesses go bankrupt and can leave you in the lurch. Talk with your developer and make sure they're in good financial standing.

When deciding whether to buy or build, you have to consider your preference. What would you like to do? Do you want a home you can fix up, hammer on, redecorate, or one that comes finished with only the personal flare left to invent? The choice can be economics or based on personality. The answer should be clear once you consider all the factors we've discussed.

 

Real Estate in Champaign county and Piatt county, including but not limited to: Champaign, Homer, Mahomet, Monticello, Ogden, Philo, Rantoul, Savoy, Sidney, St. Joseph, and Urbana, Illinois.