Should You BUY Or BUILD A House? | The Most Important Things to Know |

– Are you frustrated about whether to buy or build a house? What’s the most important things you need to.


– Are you frustrated about
whether to buy or build a house? What’s the most important
things you need to know before making a decision? By the end of this video, you’ll
know exactly how to decide whether building or
buying is right for you. (upbeat music) What’s up, guys. I’m Dan Nagy, founder
of Emmett Leo Holmes, a luxury home building
company and your insider into the world of building
and re-designing luxury homes. Quick reminder to subscribe by clicking the red button below, and make sure to click
on the notification bell right next to it to make sure you get the newest videos as
soon as they come out. So you need to move, but you can’t decide whether
to buy or build your next home. It’s an issue that so
many people face everyday. So many options and
questions to think about. So much so that often, people
spend years debating this. So let’s break it down. I’ll take you through some of
the most important concepts that you need to think about
in order to accurately form a decision and ultimately
make a faster decision. Because, really, no
body likes wasting time. I’ll start with some of the big factors that you need to think about, and then I will give you the
biggest determining factor between buying and building. Number one, the cost. The most important thing
when dealing with cost is that you are comparing
apples to apples. Square footage, finish level, material quality, and location. Generally speaking, the cost
to build a house will be higher versus buying a similar resale home because you are getting
almost everything new. Almost everything will have a warranty, including your foundation, mechanical and structural systems, and virtually all of your finishes. You rarely get a warranty
with a resale home. It’s actually one of the biggest things that separate my company from others that renovate entire homes and sell them. The second thing to think
about is customization. When you are buying a resale home, you pretty much get what you see. Barring a large renovation,
you’re purchasing the layout, the location, the style that
someone else got to decide to build a long time ago. It may be perfect, it may be slightly off, or it may not be right at all. The upside of building is that you get to choose things your way. Now, there are lots of
people that don’t know what they want until they see it, and that’s not a bad thing at all if you’re one of those people. But for others who know
exactly what they want, or exactly how their home
needs to fit their lifestyle, this might lead you closer to building a layout
that is perfect for you. Next is financing. Where I live, you can
get a insured mortgage for as little as 5% down, if
it’s your primary residence. This means that you can buy a resale home for a fraction of the
cost of the actual home. This is quite attractive to some, as building may require you
to purchase the lot outright, and have up to 10 to 20% down depending on your builder and location. If you’re in a new subdivision, you may be able to get the builder to carry the lot and build costs, while others may require
something in between. Needless to say, building will
require more upfront cash. That brings me to location. So it’s quite obvious that there are way more building
lots out in new subdivisions, versus in already
established neighborhoods. The problem with new developments is exactly that, they’re new. No trees, construction all the time, there’s not much culture
or sense of community, and until the developer puts
in some amenities near by, you might be a ways away
from any shopping centers or may require a longer commute to work. By buying in an already
established neighborhood, you are are generally better
located within the city, you have more trees, community centers, schools, and shopping nearby. It’s that instant gratification that you don’t have to wait for. I mean really, do you
want to wait 20 years before you have some nice
trees in front of your house? You can definitely avoid this
issue by finding a vacant lot, or a tear-down home and do an infill build within an already
established neighborhood, and then that whole point becomes moot. You will find these
areas centrally located, generally in older neighborhoods with a high demand and low turnover. Generally speaking, those
neighborhoods will have homes older than 50 to 60 years old. The perfect time to buy a resale
home in need of renovation? Well, you’re looking for a neighborhood that’s anywhere between 25
and 30 years after completion, where the systems in the house might have already been replaced, but the style is still
stuck to the original style. The next point people
often don’t think about, worrying about the unknown. When you know the builder
and you trust them, you have a lot less to worry about. You’re getting a new home. You have warranties. You have clean systems
and modern technology. You have intact vapor
barriers and new flooring. You have strong structural systems and water management systems,
so you know you won’t flood. But buying an older resale home, that’s tough to know
exactly what you’re buying. Sure, you can get a home inspector that can help you with
everything he can see, but there’s a lot he can’t. If you have a finished basement, he can’t see behind the walls if there’s an issue with the foundation, or the weeping tile, or
the floors, and so on. It’s really hard to tell
if a roof actually leaks, or if it is just getting
close to replacement. A warranty? Unless everything is new, chances are you’re gambling
with the life cycle of your mechanical systems. Mold, mildew, or asbestos? That’s tough to tell unless you open up the walls or ceilings
and get things tested. And now I’ll tell you the
number one consideration that you need to establish in order to decide whether
to build or buy a new home. If you’re stuck and cannot decide, the easiest factor in
buying versus building is your timeline. If you have a strict timeline, almost nothing else matters
until you figure that out. Because a build can take a
minimum of seven to eight months, all the way to two years
for massive luxury builds, if you have to get into a home right now, and cannot hold two mortgages, you have only one other option, other than buying existing
home, and that’s renting. Not ideal, as you have to move twice, and might inconvenience
your family a little bit, but if building is where
your heart is, rent away. This is the most important consideration because there is no point in even thinking about building if you have to move or you don’t have the time
or upfront money to build. So there you have it. Now you don’t have to be stuck anymore. What did you guys think? Did that make sense to you? Leave your comments below, and if you want to see some
amazing luxury projects that I’m working on right now, make sure to check out the
Emmett Leo Homes website found in the description below. Thanks for watching.

7 thoughts on “Should You BUY Or BUILD A House? | The Most Important Things to Know |”

  1. I am good at construction, notsomuch the finance. Thanks so much for this video. I was telling my parents to build. Wrong. Timeline!

  2. I regret building my home. It’s a major pain. If i could do it over I would buy something that already exist

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