In Silicon Valley, we are in a great market for real estate investing. As a design-build firm, we often receive contact from individuals looking to buy a piece of land and build their dream home. Their investment focus can be so honed in on getting just the right lot, that they don’t consider the cost of building until after they’ve purchased the lot. This can lead to disappointment when they find out that building a home can cost more than they budgeted for. Figuring that they could get a better deal by building they are disappointed to find out that the savings are not as significant as they initially thought.
Here are a few things to consider if you are remodeling or building:
What’s your goal- to stay in your home long term or short term?
If it’s long term then designing a home to your exact needs and taste will be more important than short term return on investment.
Do you have a very busy schedule?
Between the design and build of your home, there are many decisions and meetings that need to take place, on a weekly basis to ensure you are up to speed and decisions are made in a timely fashion to keep the project moving along. If you can’t scrape together 2 free hours a week to work on your home project you just may not have the time
Will investing that much money into rebuilding your home put it at a comparable value to other custom homes in your neighborhood? You want to make sure your spend will be a good investment in the future.