At Waterfront of West Clay, we often have customers that take the value of their home into consideration when designing their home’s floor plan and features. While the value of your new home is certainly something to keep in mind during the process, should you let it be a primary concern? As one of the most common questions asked by new homeowners, we here at Waterfront of West Clay decided to give our two cents when it comes to weighing cost versus value when building a new home.
There are three primary questions you should be asking yourself in order to identify just how much time and effort you should be putting into considering value over costs when building your next home. The answers to these questions can go a long way in ensuring you’re putting not only your attention but also your money in the right places when building your new home. Let’s get started!
Are You Willing to Sacrifice Your Needs?
The first question to ask yourself when weighing cost versus value is whether or not you are willing to sacrifice the needs of you and your family for the next family to own your home. When deciding on your home’s floor plan and features, it is very important to keep this question in mind – especially if it is your goal to extract the maximum equity when you sell your home in the future.
At the same time, the floor plan and features that you choose now are those that you and your family will live with for the foreseeable future, and the costs associated are yours to pay now. If it is your goal to resell your home within a couple of years, do your research and include features in your home that bring a fair price to the surrounding neighborhood.
It is important to operate with the homes in your neighborhood in mind. If it is the norm for homes in your area to possess a certain feature or floor plan, prospective buyers will expect this when viewing your home. It’s also important, however, not to go overboard if you plan to resell your home in a small period of time, as you will be less likely to see a return on your investment.
How Long Do You Plan to Live in Your New Home?
In terms of this particular question, new homeowners that plan to live in their new construction home for the foreseeable future should avoid making decisions with value in mind as much as cost. Many of the clients that we work with at Waterfront of West Clay are building their new home with plans to live in it for “forever.” This makes sense, as those building a home of their own most commonly have saved up money for years in order to build a home that fits them perfectly. If you count yourself as one of this type of homeowner, you should hold cost as a higher concern than value as resale value will not be something to concern yourself with for a number of years to come. Instead, operate with the costs you will pay for certain floor plans and features now. Take your needs and wants into consideration and set those against your budget to get the features you want in your home.
On the opposite end of the spectrum, if you are a homeowner that plans to resell your home in the next couple of years, you may want to make home design decisions with resale value in mind rather than cost. This is due to the fact that you will be seeing a return on your investment more immediately and should take the current housing market into account over your own personal interests.
Do You Feel That You Can Confidently Predict the Housing Market?
There is much uncertainty associated with predicting the housing market, and the longer in the future that you are trying to make such predictions, the more of a challenge you’ll face. If you plan to build your new construction home now and can’t see yourself considering a resale for ten or more years into the future, it is best to operate with current costs in mind rather than value. This is because there’s no real way to tell what will be considered good resale value this far in the future.
Homeowners that have an interest in reselling their home in the next couple of years are better suited to hold value above immediate costs when building their new home. While it is likely that there will be changes in the housing market within the next few years, these changes are much easier to predict with confidence now. Take a look at the current housing market in your area and consider some of the most critical factors that affect a home’s value when building your new home including:
- Location
- Age/condition
- Home size
- Home features and upgrades
- Local market
- Interest rates
- Economic indicators
Choose Waterfront of West Clay for Your Custom Home Building Needs
Whether you have decided that you should operate with cost or value in mind when building your new home, Waterfront of West Clay is Indiana’s top custom home builder and the best choice to meet your needs. With a diverse variety of custom home floor plans and luxury features for you to choose from, Waterfront of West Clay has the experience, skill, and knowledge to bring your vision to life.
When weighing cost versus value, we know there is much to be considered, and we’re here to assist you every step of the way. Contact us today with your homebuilding questions!