Pros and Cons to Buying a Lot Before Consulting a Builder on LBI
When choosing to build a custom home on Long Beach Island, it is easy to get excited and buy a lot or property before consulting a home builder. We understand the temptation to move on a great land deal, or the eagerness to be a part of the LBI community. Which is why we want to tell you about the pros and cons of buying a lot, before consulting a builder on LBI.
Pro: You are in charge. You’ve done your research, selected the perfect location for your new custom home, and bought the land to build your home, so now you’re in charge of everything. It is a great feeling, knowing that your home’s location is truly yours. And that you are on your way to designing your dream home. This also provides more freedom with the architect you choose, the engineering involved in the property, and in the materials that you choose to use and the overall design of your home.
Con: It costs more upfront. In purchasing land and then going into a home build, you are going to need a lot more equity upfront. In addition to this, you might not even be on an ideal piece of property for a builder to use. There are lots of questions when buying land that a real estate agent may not have the answers to. What is the lot size and is it conforming? Do you need variances for the size & type of home you want to build? Are there any restrictions to building on the lot you have selected? Can you fully demolish the home that is currently on the property? These are all questions that a builder will be able to answer and guide you in when selecting your property and building your custom home.
Pro: Better loan terms. Once you purchase your land and head to the bank for a loan, you may, be able to secure a loan that covers your full building expenses, ie a construction loan. This is because you have already made the commitment by purchasing the land. Also, because you will be working on the home over time, this comes with loan advantages. We recommend speaking with a bank, attorney, or a loan officer prior to making a land purchase so that you are aware of how land and construction loans work.
Con: Material values fluctuate and contractors can be challenging. A builder will know how to get the best materials for the best price, however, if you are working solo, you will be at the mercy of retail price fluctuations. In addition, a custom home builder on LBI will have relationships with suppliers and contractors that are advantageous to the overall cost and process of building a home.
When it comes right down to it, it is easier and more efficient to work with a custom home builder throughout the process of building your dream home. We are here to walk you through the stages of buying land, thinking about materials, and helping you design your dream home. With years of experience and a team dedicated to building your home like it is their own, we know exactly what your family needs and how to meet (and exceed) those needs. So if you are thinking about building your own slice of paradise on LBI and buying a lot, contact us at Stonehenge Building and Development, we know how to find the perfect spot for your new custom home.