Buying Another House Vs Building a Second House

As a successful homeowner who wants to invest in a second home, purchasing another house and the decision to have a house built from the ground up are both options. These two options for a resident differ in their personality, preference, and price.

Building-a-home types are creative, independent thinkers, who want a place that reflects their personality. They take pride in knowing the image of their perfect house has come to life. In contrast with buying another house types who don’t really want what comes with building a house, they just want a roof over their heads. They don’t want to put the effort into a new house built from the ground up. Whatever personality a homeowner has whether it’s buying a house attitude or building a new home attitude, both types know what they need when it comes to choosing a home.

The cost of another house as opposed to building another home doesn’t have everything a homeowner wants on their wish list. With having a house built, the resident can decide exactly what they want in their dream home.

Homeowners can “customize their home with such things as energy-efficient systems or environmentally friendly aspects.” So the householder is not only getting everything they want but also they are saving the earth. I’m having trouble seeing the bad side to this option. I’d pay for a second, built home just knowing I was doing something good for the environment.

For occupants who want a home right away buying another house is the best option. This choice is for those homeowners that need to move out of their first home to another house because they need to move for a new job. These people don’t have the luxury of waiting for their dream house unless they plan far in advance. Or it’s possible they are not the building a home type. I’d take this option under consideration if I didn’t have the time to invest constructing of a new house.

When faced with options like buying another house or building a second house, the homeowner has to consider the cost of these two options. According toCost of Building a House vs. Buying, “The median price for an existing home in 2005 was $219,000, while the median cost of building a home the same year was $240,900.” The prices are not that far apart, and it’s only a 21,900 difference. The resident doesn’t have to worry much about a significant price increase.

So, either way a homeowner can choose one option or the other without worrying about how one costs considerably more than the other. This is a relief for some owners who think they have to settle when buying another house instead of building their dream home. I know I wouldn’t want to settle for an all ready built home when I can have a new, built home for me at a good price.

Financial cost isn’t the only price of a home. Emotional cost is also involved when buying another house or building a new house. With unexpected weather like snow and rain and contracting issues, a completed house sounds more favorable. Buying a house definitely sounds more favorable as opposed to all the stresses surrounding a new, built home but I believe it’s worth it in the end when I’d be living in a place I can really call mine.

Whether a homeowner decides buying another house or building a home is for them, what matters most is that the buyer is happy.

Tips For Buying a House

Buying a house is an exciting experience especially for first-time buyers. The idea of finally having your own place and having the liberty of doing anything about it such as renovations makes buying a house a dream come true for most. However, being a homeowner is not that easy. You’ll have to consider your responsibility to maintain the house to keep its value for the coming years.

If you have decided that you are indeed ready to buy your own home and become a responsible homeowner, then read these tips for an enjoyable and stress-free house buying.

Find a suitable location

One of the most important things to consider in buying a house is the location. Search for a house that is located strategically. The house should be located in a well-maintained community with nearby schools, hospitals, police stations, fire stations, public libraries, gasoline stations and recreational facilities such as shopping centers and theaters. Ideally, the community should be secure and with peaceful neighbours.

House hunting, indeed, is no walk in the park so be sure that you know your preferences and always consider the concerns of other family members. You can keep track of the houses that you are visiting by taking pictures, writing down descriptions and rating each house.

Determine your budget

Your financial capability is important when buying a house because it involves a large amount of money. The exact amount which you are willing to spend will determine the kind of house that you should look for.

Assess your credit score and be pre-approved

Mortgage, which refers to a loan for the purpose of buying real estate such as a house, is a recommended option for homebuyers. Therefore, it is important to review your credit standing and see if you are qualified to apply for such loan to help finance your dream house.

A good credit score provides plus points for a mortgage application. Search for a lender which will guide you in the pre-approval. Pre-approval for a loan will depend on your current financial status. Getting pre-approved is a positive step to acquiring a mortgage. It also keeps you on track on the price limit of the houses that you should look into. Moreover, a pre-approval record is a good way to convince a house seller that you are sincere in buying that house so you can have a better bargaining power.

Consider a real estate agent

A real estate agent can help you find a home that fits your requirements so make sure that that person is reputable and that he or she meets your standards. Also, make sure that your potential agent understands every detail of your preferences. A real estate agent will also guide you in the negotiation process with a potential house seller.

Negotiate then buy

If you find a house that you like, make an offer to the house seller. Make sure that you are armed with information on the current market value of houses in the area and most importantly know the lowest possible price that the seller is willing to agree on.

Once you have agreed on a price, you will have to go through the process of actually buying the house. This involves getting the expertise of a home inspector, drawing the terms of agreement and having a lawyer review the contract. After all the paperwork is done, a deposit on your part will be placed in escrow until the sale is final.

Should I Buy a House Now Or Wait?

As 2009 enters its fourth quarter, many people are asking “Should I buy a house now or wait?”  The National Association of Realtors is running advertising right now asking the question, “Why are you sitting on the fence?” For the cynical out there, you may think that this is a shameless way for the Real Estate industry to drum up business. After a few lean years real estate agents are hungry for a sale, you may think. But still you ask, should I buy a house now or wait? 

Well, while it may be true that some agents have dropped a few pounds and have had to tighten their belts just like everyone else, the good agents are keenly aware of the great deals that are out there. They are the ones to turn to help you determine should you buy house now. They are on the phone, sending emails, and educating their clients about what is happening in the industry and in the real estate market.  

There are fantastic deals available, and the smart money is investing in these deals as a way to expand their wealth base and take advantage of the opportunities right now, while others are still sitting on the fence. So when you think about should I buy a house now or wait, think about what adding a well-priced home to your financial portfolio will mean to the future wealth of your family.  

Is this the bottom of the real estate market? Many want an assurance of this before they decide should I buy a house now or wait. Well, nobody knows for certain, and pundits on both sides of the issue make a strong case for whether or not we have seen the bottom. While it’s interesting to hear what “they” have to say, at the end of the day it is your family’s financial well being and quality of life that should determine should you buy house now. Most often, the bottoms are not recognized until we are well on our way back up and many opportunities are missed.  

Affordability: Across the nation for various reasons, prices have declined. The counties that experienced the greatest increases in prices are now experiencing drops in prices which are starting to look like great buying opportunities. So ask yourself, “Should I buy a house now or wait until things are less affordable?”  

Low Interest Rates: True, lending standards have tightened up; however, there are still loans to be made. Buyers are taking advantage of conforming and FHA loans where rates can still be found in the 5% interest range. With FHA financing available in the Orange County area, the increased loan limit of $729,750 is looking especially attractive. Even borrowers with a credit score as low as 580 can consider a home purchase in today’s market. It is best to talk to your lender or mortgage broker to get the most recent information on the loans available to you. So ask yourself, “Should I buy a house now or wait until interest rates increase?”  

Government Incentives: Don’t miss out on this one. Many homeowners have claimed that it is the $8000 tax credit offered for 2009 that prompted them to take the step into home ownership. This tax credit expires December 1, 2009 so don’t wait if you want to qualify for this benefit. So ask yourself, “Should I buy a house now or wait until the tax credit expires?”  

Mortgage Protection Programs: For those that may be concerned with the viability of their employment, there could be a program to assist with your mortgage payment if you become unemployed. The California Association of Realtors (C.A.R.) offers the Housing Affordability Fund Mortgage Protection Program [http://www.lagunabeachrealestatemarketblog.com/2009/10/02/should-you-buy-a-house-now-or-wait] for first time home buyers who lose their jobs due to layoffs. There has also been mention of some lenders that are offering similar programs so be sure to ask your loan specialist about this option. Also, another insurance program that has always been available is through disability insurance which applies if you become disabled. Be sure to check out all your insurance and “safety net” options so that you can weather out the storm of any unforeseen event. So ask yourself, “Should I buy a house now or wait until my job situation changes?”  

Choosing to live the life you want in an area you choose: Do you love your neighborhood, your school district, your commute, your view, your community, the size and “feel” of your house? If you cannot answer with a strong “Yes!” to any of these questions, then now may be the perfect time to step up and live the life you’ve always dreamed of. For the coastal communities of Orange County and Laguna Beach, that means waking up to the smell of the ocean and cool ocean breezes; a year-long temperate climate; great restaurants, entertainment and schools; a short drive or walk to the beach to surf or sun. It’s a lifestyle choice…is it yours? Ask yourself, “Should I buy a house now or wait until I’m ready for the retirement home?”