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Build New Home Cost

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But since the average Florida homeowner only resides in their home for five years before selling, you will also want to consider what type of property will be easiest for you to sell down the road, and will yield the greatest amount of return on your initial investment.



A tale of two homes

There are two choices when it comes to residential real estate purchases: you can purchase an existing resale home, or you can purchase a brand-new home. There are several variables that go along with each of these options, such as the age of an existing home and whether you purchase a new home pre or post-construction. Many of these variables will have a large effect on the resale value of a home, so you should carefully research all of your options before you buy.

So let's say you have completed your research and have narrowed your choices down to two homes. One is an existing home, built in 1990, and the other is a pre-construction custom home. They are approximately the same size, and both are in good neighborhoods. The existing home does not have any apparent repair issues, and will require only minor renovations and redecorating. The existing home is listed at $200,000, and the pre-construction home will cost a total of $250,000 including the home site.

On the surface, the existing home may seem to be the better bargain. It is of the right size and in a desirable neighborhood, plus it costs $50,000 less. But in order to determine which home will yield the highest return on your investment, and thus will end up being the ultimate ?best buy?, we will need to examine a few of those variables mentioned earlier.

Are you really saving $50,000 by purchasing the existing home?

Let's start by taking a look at those asking prices. On the existing home, you may be able to negotiate with the seller and bring them down a few thousand dollars. So after bargaining a bit, you now have a purchase price of $195,000.

But bear in mind, it is possible to negotiate with a builder as well. There are actually two ways that you can save money on a brand-new home. First, you can purchase your home during the winter time. The low-season for Florida real estate runs from November through April. If you are able to time your purchase for some time during these months, you will likely be able to negotiate a lower sale price or additional options and features at no charge. The amount a builder is willing to take off the sale price of a home during the low-season varies from builder to builder, but for our purposes here let's say you are also able to negotiate a $5,000 price reduction. So now your pre-construction home has a sale price of $245,000.

The second way you can negotiate a better sale price on a pre-construction home is to purchase your home directly from the builder rather than using a realtor. A realtor charges the builder a 3-6% commission for bringing a buyer to the table. If you purchase directly through the builder, they are saving roughly $7,500-$15,000 on a $250,000 home, and will often pass these savings along to you.

So at this point, you could have a sale price somewhere between $230,000 and $245,000. That is still $35-50,000 more than the existing home, but this is where some other factors come into play.

The X factors

You may not think a home build in 1990 would have any major problems. After all, the home is only 16 years-old. But the average roof in Florida lasts no more than fifteen years. Air-conditioning units and heat pumps need to be replaced every 5-10 years, and sixteen years is more than enough time for a home to suffer insect damage, leaks, and wood rot. All of this amounts to thousands of dollars in potential repairs.

It is always wise to have a home inspected by a professional before you buy, but no matter how qualified an inspector is, they can't always detect every potentially expensive problem. You never really know how well the home has been maintained, or what lies behind the drywall.

When you purchase a custom home, everything is brand-new. There is no need to worry about expensive repairs, because even if something does go wrong, it will be covered by the builder's warranty.

As for the remodeling issues on the existing home, even if they are minor they will require additional time and money. With a custom home, you choose your own floor plan paint, tile and cabinetry colors, and lighting fixtures.

Finally, when you purchase a new home at a pre-construction price, you often earn an immediate return on your investment since the value of the home will usually go up before it is even completed.

And when it comes time to sell, newer homes are in higher demand, even in a buyer's market. So ultimately, purchasing a brand-new home will earn you a much higher return on your initial investment than an existing home.
Build New Home Cost
D'cor may not seem like the most important element when building a new home, especially when a home buyer is placing the heaviest emphasis on location, price, and quality of construction. These are all extremely important elements, and should be the first elements of a new home or home builder that you, as a Florida home buyer, consider. But what if you have a difficult time choosing a builder to construct your new Florida home?

Let's say you have found two or three different builders. All of them offer a variety of floor plans and high-quality construction. All of them have home sites available in your desired community, and they all offer homes in your price range. How do you make the final decision on who should build your new Florida home?

The decoration consideration

There is a factor that many home buyers don't consider when choosing between builders. Believe it or not, decorating options should be a deciding factor in your choice of home builders. If expressing your personal style and taste when building your new home is important to you, then the statement on the importance of d'cor when building a new home makes perfect sense.

But what if the thought of choosing paint colors gives you a headache and you could care less about the color of your countertops? Should decorating options be an important factor in your selection of a home builder? Absolutely! And the reason is this: the highest quality home builders are most often custom home builders.

Custom homes offer a lot more than just a choice of paint colors

Unlike tract house builders who are able to purchase cheap materials in bulk to decorate their cookie-cutter houses, custom home builders give their buyers an inside look at their construction practices and use of materials as the buyer is selecting the options for their home.

If the home buyer is able to choose their own options for their home, they are seeing first hand where the builder is purchasing their paint, fixtures, and other materials. Custom home builders are unable to hide behind cheap, look-alike homes the way some tract house builders do because custom home builders give their buyers full access during the entire construction process.

So even if decorating options are not high on your priority list when shopping for a Florida home builder, in most cases, you are better served by a custom builder who uses high quality materials and has built a good reputation over a number of years.

Custom homes and decorating enthusiasts are a perfect match

Choosing a custom home is a smart choice for any Florida home buyer, but for the true decorating enthusiast who feels that personalized d'cor is an integral part of making a house into a home, purchasing a custom home is sure to satisfy. Custom builders offer a wide variety of choices when it comes to the d'cor of your new home.

Choosing an interior and exterior color scheme is just the beginning of the many options a custom home builder offers today's home buyer. Options such as choice of ceramic or porcelain floor tiles in a variety of styles and colors, choice of granite colors for countertops, cabinetry color and style, and lighting fixtures all take your new home to the next level of luxury and style.

Features to please the most discerning of home buyers

Custom home builders don't stop at giving their buyers options when it comes to color and style, they also take quality of materials and the expectations of modern home buyers into consideration. For example, most custom home builders now offer knock-down texture on ceilings rather than outdated popcorn, since many home buyers today are turned off by the popcorn ceiling texture that appealed to buyers in the seventies and eighties. The lighted plant shelves and modern, airy floor plans that today's buyer has come to expect are also offered.

Quality is reflected in the builder's choice of paint products, bathroom and kitchen fixtures, and lighting schemes. A high-quality custom home builder uses the best available materials when decorating a home, as well as the best construction materials when building the actual home structure.

Kitchens and bathrooms: the rooms that sell homes

Most buyers pay close attention to the quality, size, and layout of the kitchens and bathrooms when they are shopping for a new home. What does this mean to you as you purchase your custom Florida home today? It means that your custom home, with its upgraded kitchen and bathroom features such as top of the line appliances, fixtures, bathtubs and showers, will hold a higher re-sale value because it has a greater universal appeal than a home with cramped, outdated kitchens and bathrooms.

Custom homes are a smart choice for any buyer

It's hard to go wrong with a custom home. With their brand-new, upgraded features, appliances, floor plans, and top-quality construction, custom homes give the Florida home buyer so much more for their money. Quality, peace of mind, and an ability to express your personal style; all of this comes with a custom home purchase.
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About Author
Both Tom Beaty & G Beaty are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Tom Beaty has sinced written about articles on various topics from Buying and Selling Home, Sell Home and Buying and Selling Home. Our Concrete Florida Homes survive hurricanes - Tom Beaty a real estate broker and home builders in Palm Coast, Flagler and Volusia County. Visit:
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