In this era of opportunity, I want to issue an important note of caution. I’ve been watching as buyers have been snatching up homes with impressive square footages, sometimes letting the price-per-square-foot figure blind them from the quality of product they are purchasing. Right now, newer homes in Central Oregon are selling for as low as $65 per square foot, and in some cases even less! I’m sure that figure drops below $50 when you look at short sales in severely distressed regions like Florida & Arizona. At that price, it’s hard not to put strong consideration into purchasing a home; simple calculations prove that replacement costs would be considerably higher, and the land is essentially free!
However, I want to remind buyers of the classic Real Estate term “Caveat Emptor”….. Buyer Beware! A lot of these “steals” are homes that were constructed during the heyday of real estate development; a time period when production was high and, often, the quality compromised. In other cases, the homes were constructed as the market was tightening and builders were cutting costs (and quality) in every way fathomable.
There are so many incredible deals out there right now, why not be selective, and picky about quality? Quality will save you in the long run…. Ever heard the saying “buy nice or buy twice”? As a LEED AP, a “green” certification, I can attest for the fact that homes design is trending towards efficiency, not size. Homes of the rich are being designed to fit needs, not exceed them, and construction methods for these homes are retreating back to the American tradition of higher quality.
I urge buyers to take note of the “little” things when looking at homes. Do the drawers open and close smoothly? Are the appliances decent? Look closely at drywall & countertop seams. Are the doors & hardware sturdy? If these “small” aspects of a home express attention to detail, it’s likely that larger issues such as insulation, window R-values, framing methods, and so on, will be of a quality that will bring years of hassle-free enjoyment. Instead of saving up-front and forking out money for maintenance issues every season, pay a little more now and rest in the fact that your biggest investment will bring decades of comfort & value to you and your family.
As an example, my parents recently built their “dream home” of over 12,000 square feet. Did it bring happiness and prosperity? No, their big home brought nightmarish utility costs, massive maintenance issues (and time & expenses), and huge tax bills! These are all costs you’ll end up living with if you choose to purchase a big home just because it’s cheap.
My suggestion: Find a home that fits your needs & lifestyle (obviously considering future plans). Don’t get drawn into a 5-bedroom home if you and your wife are settled with one child. If you’re an aging bachelor with no plans to marry, you probably don’t need the mother-in-law quarters. To an extent, choose quality over quantity….. And make sure that the builder cared about the home as much as you will!
2 comments:
Matt-
Great read, and your advice couldn't be more spot on. My wife and purchased a home last year in Beaverton. Older home, but fit our needs in size. What we didn't look at closely enough was the age of the windows, roof age, furnace age, etc. These are all obviously very large costs that we will be dealing with in the coming years. Also one aspect many people do not look at is yard size, quality and the costs of landscaping maintenance every year. My best advice to future buyers and especially first time buyers would be to take your time, and examine EVERY detail thoroughly.
Great advice, Stuart! Thanks bud!
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