Welcome to Homebuyer's School
brought to you by Brookfield Residential
Hello and welcome to this edition of
Homebuyer's School.
I'm your host Karl Yeh.
This is Cory McDonald
with Brookfield Residential, Community Manager, and
today the question we're going to answer is
"What is the cost of building your home versus buying your home, and what
are the positives and negatives?
Absolutely!
I think to start off with building your own home, there's maybe a smaller market,
and we're typically looking at larger parcels of land, more expensive estate
style homes, where you're buying a piece of land and then independently contracting
out builders and trades to build your dream home.
The benefit to this is they're usually
choice locations.
So we're looking
at just outside the city on bigger
parcels of land with great views.
and the ability to customize at that point.
So you get to basically do whatever
your heart desires in the style of home, your dream home typically, and putting
in slides from your upstairs to your downstairs or the full height
windows to ceilings.
Things like that is kind of
the benefits of going in that route.
I think most buyers are going to fit
into the realm of building with a current
builder developer.
Most of the land is already owned by developers, and they're
selling that land off to builders
who are able to buy larger parcels of that land and have the credibility
and the background to do that properly.
I would say that the benefit is obviously the price right, because these builders
typically have a little bit more of a buying power.
The amount of buildings that they're doing,
they're buying inventory for more than just
one or two homes, typically.
So they get costs down, for the cost of
the trades, cost of supplies, and even
the efficiency, so even building times
are a little bit quicker as well.
Especially as we get into the more
price sensitive homes right, if we're looking
into the condos the town homes, or even smaller single family homes,
you're not going to be able to do too much customized buildings from the ground up
if you're looking at finding something affordable in that price range.
So yeah, the biggest benefit of that is
the affordability, I think secondly to that is
because these builders have been
doing it for so long or a little bit
longer, they have the experience of
what functionally works in a home with
professional design teams, to know
there's a purpose behind why certain
floor plans are doable, and why others
maybe don't make sense.
Cause I've seen it a couple of times
when people do make specific
customization's on their home,
and then they move in and they're
really excited and then they realize
that it doesn't work.
That reminds of that Simpsons episode
where his brother asks him to build
a car, and then the car turns out to be-
no one in the market actually wants it
except for him, right?
And I think that's one thing you need to take
a look at too is, the resale value.
So if you build something that's crazy
but fits you, eventually you're going to
have to resell it, right?
Or you die and somebody inherits your home
and they're either going to have to live with
what you chose, or they're going to have
to try and sell it, right?
So one hundred percent, is those
builders have that in their mind, and
part of, you know that lifestyle that
you're living -what the seller of the home,
-or what the builder is trying to do is
-we're a service industry, we're trying
to service what fits your lifestyle.
The style of home, the community
you want you and your family to live in,
part of that is also the resell-ability
of your home and the community and
if we have a bunch of those Homer cars
as houses that's going to play detrimentally
into how you are going to be able to sell them down the road too.
So let's say for example if you are planning
to build your own house, and I know you
mentioned that developers would sell it to builders.
Can you actually buy it from a developer?
Let's say I want that specific -just that
little piece of land, I want to build my
dream house in that specific area,
can you going to a developer and say,
"Hey, here's my money, I want to own that little parcel."
Some developers do, and again we are
looking more specifically at estate-style areas
or outside of the of the city more specifically,
generally no, if you're trying to find in the
middle of a street that's already predetermined
to be with 'Builder A'.
If you go to talk to the developer maybe they do,
but I haven't heard too many stories of that.
Awesome, well thank you very much for that
information, thank you very much for
joining us and we'll catch you next time.
That's another edition of Homebuyer's School
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