Waiting To Build Will Cost You Thousands Of Extra Dollars

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Many home buyers have no idea that the cost of construction has historically increased year after year. What does that mean for you? Well, for one thing, it means that delaying your next home build will likely cost you thousands of extra dollars not to mention wasted time.

We've already talked about interest rates and how that can greatly affect whether you should build now or wait. Then, we discussed the scarcity of land and lots here in the Omaha area. Now, we need to talk about how waiting until next year to build will actually end up costing you a lot more money out of your pocket.

Did you know that the U.S. Census Bureau keeps tabs on the cost of construction in the U.S.? In fact, they have been keeping up with those numbers for many years. What they have been able to determine is that over the last 20 years, the average cost of a new home annually has gone up about 2.8% each year. That is mainly due to commodity prices such as wood, lumber, shingles and the price of gas, as well as other factors.

Let's do some figuring: If you take that $200,000 house that you have been longing for and you just wait one year (assuming that the cost of construction only goes up 2.8%), it is going to cost you an additional $5000-$6000 to purchase that same home a year from now. That is not even including the increased cost of land that we discussed earlier or the possible increase in interest rates. When you start adding up all of the numbers, the cost of your beautiful $200,000 dream home can go up astronomically in the next 1, 2 or 3 years.

Don't make the mistake of trying to wait out lower interest rates because the market will fluctuate. No one can guarantee that rates won't increase substantially a year or two from now. Do you really want to sit on the sidelines and let these fantastic rates get away?

You've probably heard the saying that a “bird in the hand is worth two in the bush”. In other words, you don't know what is around the corner, so don't rely on better rates, more land becoming available or building prices going down. We know what history has shown, so make an informed decision now that will benefit you later.

You definitely do not want to look back a year or so from now and wish that you had made the decision to buy a new home when rates were great and building prices were lower. Call or visit us today so we can help you build your next home!