If you are looking to design and build a new home, you may wonder if it is better to buy new land or use the land that you already own, even if there is a home already on it. You also may wonder if it is easier and cheaper to sell your land and buy an already-built home on a different piece of land.
Which solution is best? The answer isn’t a simple one.
There are a few factors worth considering to ensure that you make the right choice.
It May Be Difficult to Build on the Land
Building any home is a chance to live in a design that fulfills all your wants and needs, but a different piece of land may bring you more in line with your design goals. If there isn’t currently a house on the land, you may find that building your ideal home there is too pricey. Even if your design is relatively simple, the cost of sculpting the ground, installing piping and electrical, and doing full construction and foundation support may simply be too much.
A piece of land with a new home on it, however, has already had the construction issues worked out, saving you time, money, and hassle.
You May Pay More Overall When Buying Land First
Buying land first and then working with a home builder requires more upfront equity. Also, simultaneously buying the land and building the home saves you fees and requires only one closing.
Size Matters
If the land that you own is large or would bring a high price now vs. when you first bought it, you could sell it in exchange for a smaller plot of land. The sale could provide you with financial savings that you can pocket or use to improve your home design.
You May Not Be Able to Build on the Land, Even If a Home Is Already on It
If you need to demo an existing home, be aware that local permits, zoning, ordinances, building codes, and government regulations change. You may find that you can’t build a new home on the land, even after you demolish the house already on it. This costly mistake is quite common.
The Demo Costs Money
If your land already has a house on it, you will incur the expense of demolishing the existing property. Instead, you can simply sell the land with the property on it and then use the money to buy a new home on a new piece of land.
Financing Both the Land and Home May Be Affordable
If you are looking to mortgage the property, you may find that selling your current land and building on a new piece of land offered through a design-build company is a more affordable option or a better upgrade overall. A design-build company may also offer financing or loan options for both, making it easier for you to obtain a new home while ensuring that it’s built on time and on budget.
A Quality Builder Has Your Answer
There’s so much to consider when buying land and building homes, and a seasoned design-build company can help you make the best financial decision.
Here at Arbor Homes, we specialize in design-build construction in Oregon. We offer custom, semi-custom, and turn-key designs to suit your budget and lifestyle needs. We also have land and ready-made homes available, making it easy for you to make the right choice for your dollar.
To learn more about pricing and other considerations when building on your current land, contact us here.
