There are a good number of retired (or nearly retired) folks who are planning to build their retirement homes in the coming months. I know because I talk to them reguarly. These are people who are not waiting to sell an existing home, who have excellent credit scores, and who have savings and the financial wherewithal to buy a lot and build a home. Some already purchased their lot several years ago.
Obviously, there is a large segment of our population of retirees who are not in that group, because they must first sell a home before they can build, and right now try to find a good market to sell anywhere in the country. So these folks are going to patiently (or impatiently) wait for the market to begin to return before they make their move to sell and build their next home.
For those who are in a position to build, why is now such a good time? As they say in any area of investing, and building a new home is a huge investment, “timing is everything.” If I were a high pressure salesman working for a large tract home builder in trouble in the Seattle or Tacoma area, and I was trying to force your hand to buy a spec home that’s been on the market for nine months (and is headed to foreclosure if the builder doesn’t get it sold stat), my pitch to you that now is the time to build or buy a spec home would be colored with conflicts of interest. I’m not in that position, and no one I associate with is in trouble to sell spec homes or anything else. We all have our personal motivations, and I have mine, but judge my counsel here on its own merits.
Here are five solid reasons this is one of the best times to build a home in the next five years:
- If you are buying a lot for your new house, lot prices are lower than they’ve been in many years, and developers and private owners are bending over backwards to sell you their lots;
- The prices of timber and other materials are lower now than they have been and will be in a long time;
- The subcontractors are reducing the labor component of their bids right now out of a need to work;
- Builders and subs are likely to give you more personal attention right now than ever, both in the relationship process and in the quality of workmanship; and
- When the market starts to come back, we will see significant inflationary upward pressure on prices across the board as consumer spending and massive government spending kicks in and as we see the economic multiplier effect play out.
This is a good time to build, provided you do your due diligence in selecting a home builder with experience, integrity, and financial strength, and provided you surround yourself with professionals to gather information and make wise decisions at every point. Be wise in chosing a Realtor, an architect, and a home builder. You’ll be glad you did. If you need help in this process, you can email me or call me. It would be my privilege to be a part of your exciting plans to build your retirement home in Sequim or Port Angeles.
Last Updated on December 16, 2008 by Chuck Marunde
You make some excellent points Chuck. A lot of people don’t realize it, but right now is a time for deals, virtually every company is willing to work a deal just to stay in business, not that one should take advantage of that but a good deal never hurt anyone. 🙂
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Chuck,
I was talking with a potential first time home buyer the at the end of winter. She was looking at bank owned homes and short sales. We found a lot and utilized a small construction company with a proven record. After all is said and done she ended up paying the same amount as she was looking to spend on a REO for the almost exaclty the same price.
The best way to preserve that newly-purchased house or other property is to make sure that it is put into a trust or other estate planning entity. For new home builders who want to learn more about this, you can go to Law Practice Management Systems.
Great one. It’s a very informative post to read. Thanks to this, I’ll let my frinds read this.
I agree with you. Many companies are playing games with numbers just make some sales. It really is buyer beware.
Sequim real estate is without question a retirement destination. Sequim is beautiful. What a great place to retire.
This is some very useful information to have. I agree now is the best time to start building a home. Prices are cheap and lets be honest. They can only go up from here. If you were to build a home now. It would most likely be worth more later.
Nice Article