The Hidden Costs of Waiting to Build

Are you thinking of building a new home?  Waiting may indeed be costing you more than you think. Consider the following:

Low Rate Environment

Today’s mortgage rates continue to be historically low, which boosts your buying power and allows for upgrades that may not otherwise fit your budget.  Even a small percentage increase in long term rates can equate to thousands a year in mortgage payment savings.  Low rates also help with the sale of your existing home.

Building and Land Costs

The cost of raw materials like wood and concrete continue to increase with time.  Land costs and labor shortages have put upward pressure on new home construction costs as well.  A shortage of existing home inventory would suggest very little will change in demand for new home construction, so waiting may cost you more simply because of normal inflationary movement.

The Economy and Home Appreciation

With a full decade of economic recovery under our belt, home prices have continued to appreciate, making the sale of an existing home relatively simple in this seller’s market.  What once added stress to the process of building a new home is now more streamlined – with your existing home priced right, it should be listed and sold in a few months or less.  

Spring Selling Season?

Many sellers think that listing a home in March or April gives them the best chance of capitalizing on price, but we’ve learned that getting ahead of the crowd in January or February can pay dividends as you compete against fewer listings.  If you’re looking to sell before building, give this some serious consideration.  

Financing Options

Another reason to skip the waiting game is a Great Midwest Bank Bridge loan.  This temporary financing option allows you to access equity in your current home for a down payment on new construction.  Alternatively, you could simply consider a low down payment option as well and wait to pay down the construction loan with proceeds from the eventual sale of your existing home.  

Interested in your options?  Contact me for a personalized pre-approval customized to your specific needs.  With a variety of options available, Great Midwest Bank is a leading construction loan lender in the metro Milwaukee area.

Ginny Myszewski

Great Midwest Bank Mortgage Loan Officer / NMLS#762386

Cell: (414) 323-0949 | Office: (262) 641-1371 

Ginny@greatmidwestbank.com

About Korndoerfer Homes

Korndoerfer Homes, Inc. is a family-owned third generation, single-family home builder with offices in Brookfield and Sturtevant, Wisconsin. Every home is designed and built with a focus on quality and value while including livable floor plans, architectural character, energy efficient features, and a new home warranty. Korndoerfer Homes proudly builds in seven counties in southeastern Wisconsin. For more information, visit www.korndoerferhomes.com.