Jason, Home Buyer in West Fargo, ND

Is it better to buy an existing house or build new in the $400 - $500K price range in west fargo?

Asked by Jason, West Fargo, ND Wed Jul 4, 2012

We are a small family and do not need that much space now, but will probably need it when our kids grow in the next 5-8 years. Should we buy a smaller existing house now or go ahead an build our dream house now even though we won't fully utilize it for the next few years because our kids are small right now? What will the west fargo market look like in the next 5-8 years with all these influx of new homes?

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Angels.aerangels’ answer
I live in Moorhead, about 10 miles from West Fargo. You can buy a whole lot of house for 500K. I dont know why anyone would build for that price, unless you have a gorgeous piece of land that has trees and acreage. With buying a home, you get mature trees, landscaping, neighbors that have likely been there for years, etc. Newly built homes are of course built to your taste and needs, but also have no landscaping, trees and are usually in new subdivisions, that look like deserts for a while. West Fargo is growing like crazy and is a great place to be regardless of what you do, but in my opiniom (im not a realtor) I would just buy a home in a well established neighborhood and have it inspected by a plumber, electrician and regular licensed inspector, to cover all angles (we were flooded a few years in a row, and you dont want to have issues down the road with anything).
0 votes Thank Flag Link Wed Jul 18, 2012
Jason,

I know your question was posted months ago. Just a little background, our market in the FM area has shifted from a Buyers market beginning early 2012, now less then a year later a full fledged sellers market. Currently home sellers are getting much closer if not actually getting asking price, due to the lack of inventory of existing homes on the market as of late. so if you have a home to sell now maybe the time.

Now on the point of building. I have been told by a few builders that building costs are going to be going up approximately 3% in the coming months. That being said if you are looking in the 400-500k range that could potently cost a person between 12-15k, plus if a person finances you pay interest on that 12-15k over the years multiplying that cost.

On the other hand no one could say where the market is going to go in the coming year much less the next 5-8. You might look back and say "I am happy we held out" or be kicking yourself wishing you had made a move. You need to do whats best for you and your family.

Hope that helps one way or the other :)

Justin
Web Reference: http://www.isellfm.com
0 votes Thank Flag Link Thu Feb 14, 2013
Market predictions for the next 5 - 8 years, nobody is able to do that for YOU.
The real estate market like so many other things in life, just depends heavily on what happens with the economy, other countries in the world, unemployment, wars and so much more.....

But as far as buying an existing home or build new.....
Well you can find out what the cost is going to be for building a new home and add a little extra, as
in most cases on paper it will look a bit different than when it starts going up and every change will
cost you extra, so careful there.

The other thing is look at homes that are similar to what you would build yourself, have an inspection, consider if you can add on down the road, even it it is just finishing a basement, or add a Great room in the back...... and see what seems financially a better deal...

Many existing homes, that are older and well build, with a good floor plan and well updated and
maintained by their owners, sometimes are priced very very well and they in most cases exist in an established neighborhood....

Before deciding, get the help of contractors/builders estimates and then connect with an experienced Realtor to look at existing homes, you may just fall in love with one, that fits your needs now and in the future.

Hope this helps a little...
Sincerely yours,
Edith YourRealtor4Life & Chicago and Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and Investors alike....
Covering for @Properties the city of Chicago, all N and NW suburbs, the fine homes on the
North Shore, and many of the W and SW suburbs, and with her trusted Partner Agents all of
the US and worldwide properties. Edith speaks French, German, some Spanish and other.....
@Properties, 30 Green Bay Rd, Winnetka, Illinois 60093 ---- EdithDoesItRight@yahoo.com or EdithSellsHomes@gmail.com Check out my website at htttp://www.tinyurl.com/MeetEdithHere
get to know me better and learn about my experience, expertise, services available and letters of recommendation of former clients..... Also you can sign up on my site to search for properties in my expanded service area. HAVE THE MOST WONDERFUL DAY :)
0 votes Thank Flag Link Thu Jul 5, 2012
Nobody has a crystal ball, so it's impossible to say what the market is going to be like in 5-8 years. I think you should do what's right for you and your situation now. If it were me, personally? If you can afford to build your dream home now (while land values and costs to build are relatively low), why not? I think the market has "hit bottom" in most places and starting to recover. Home prices are slowly creeping up. But who knows what the future holds? What if there's another "9/11 event"? What if we go to World War III? Anything can happen.

But if you buy something that fits your family now, no one knows what the market is going to be like 5-8 years from now. Will you be able to sell your small home then? Will you be able to buy your dream home then? Who knows! Do what works for you today.
0 votes Thank Flag Link Wed Jul 4, 2012
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