Blog Post

Med City Builders Blog

New Construction vs New Construction??

  • By Jenni Jordan
  • 12 Mar, 2015
Might seem like a strange title, but this is a reality for the next few months in our market. Many of you are aware that we saw a major influx of building permits pulled trying to beat the new building codes as well as energy codes. The vast majority were builders speculating with model homes. Some of the pulled permits were informed homeowners making a logical decision. I’m not saying it was all bad as some of my customers even followed suit to save the extra costs. As things shake out, we are not seeing the major differences in costs that the builders were expecting. This brings me to my blogs title. Should we look at a new construction model home under construction that a builder pulled a permit with before January 24 th or should we look at building new from the ground up and build it today? I would caution the logic of trying to save $8,000 on a brand new home to get a model that is essentially a year outdated. Would you assume that each year a new car sells for more money due to the advances and amenities it offers? The difference is that new cars often go up by 5-8% per year. Under the new code changes, a new home that was $400,000 will now be closer to $410,000. This equates to about a 2.5% rise in costs. You must be conscience of the future when you need to sell your home and what the buyers might expect out of a home the same age as yours. If you don’t offer the same things, they might ask you to upgrade them in order to sell. We saw this first hand when the radon codes went into effect years ago. Now people are forced on almost every home to have that up to a certain criteria in order to sell. It would have been much less costly to do this up front. The moral of the story here is to just make sure you think things through in regards to saving a few thousand dollars when making a purchase of this magnitude. A few thousand today might save you more than that down the road! My personal choice would be to pay the extra money and get a home that has everything a future homeowner might expect to see when I decide to sell down the road.
 
By Jenni Jordan 09 Sep, 2020
This seems like a common thing to say with the current state of the world and this COVID pandemic, but many don’t take the time to figure out why this might be the wrong thing to say.  For many of us, our home has been and always will be our single best investment.  The key to any good investment is time and many who see the wild swings in the stock market soon forget.  I often have clients ask me when the right time to buy or build a new home and I have kept my answer the same for the past 20 years.  It is “Yesterday" but you can’t go back in time obviously.  Each year we begin with price increases in labor, materials, and typically land.  We often think that this seems too high for our customers but by the following season our customers call and say how thankful they are that they built when they did.  This year will be no different for anyone who took that leap of faith and next year will be the same.  Our home has been the only place we are able to take our masks off, the only place many of us have been able to work, and the only place our kids have been able to learn over the past year.  That being said, we should look at our home as the place we should invest the most in and if and when the time is right for our family we should make the move to do what is right at the time.  Recently we have seen an uptick on the lumber costs across the nation and that has caused many to hit the pause button and think that if we wait until next year we might be better off.  Historically we have seen an average of 2-3% in new home increases from fall to the next spring and this is the overall effect that we are seeing with the higher costs in the materials today.  If the lumber prices go back down next year, you are only going to be paying the same amount for your new home and likely more with the normal set of increases we see yearly.  Interest rates are another factor.  We currently have historically low rates and next spring that home you can build now will be unattainable with a small shift in that rate.  The bottom line is this.  Never be afraid of taking the leap if your time is right.  Your home has been and always will be one of your best investments you can make for yourself and your family.  Yesterday is almost here so now is the time to get moving!
By Jenni Jordan 24 Oct, 2017
Winter is almost here and there is no better time to talk about our homes ventilation systems. The cold is fast approaching and I thought I’d touch on two vital air movement systems in our homes to prepare for it. … Continued
By Jenni Jordan 03 Feb, 2016
Spring Outdoor Tasks: Clean gutters & downspouts Inspect roof/chimney for cracks and damage Touch up peeling or damaged paint Wash all windows, inside & out Service your lawn mower Fertilize your lawn Install downspout extentions   Indoor Tasks: Test smoke … Continued
By Jenni Jordan 18 Jan, 2016
When I meet with my customers on the final walk through, I spend time discussing the major mechanical systems in the home. The last topic was on the Air to Air Exchanger and today I will focus on the homes … Continued
By Jenni Jordan 07 Jan, 2016
Today I’m going to run down my typical walk through discussion with my customers regarding their air to air exchangers. I normally start off by making sure people don’t overthink what the system is designed to do. Anyone who has … Continued
By Jenni Jordan 03 Apr, 2015
Sounds pretty mundane, but in the MN building industry it is a pretty hot topic. As code continues to be understood by us all, the best and most cost effective ways to build a home always seems to filter to … Continued
By Jenni Jordan 27 Oct, 2014
Have you ever considered building?  If so, you probably have wondered where to start.  We have clients come to us at all different stages…some know exactly what plan they want and the flooring they want in it, and some don’t … Continued
By Jenni Jordan 18 Jul, 2013
You are selecting a quality builder with Med City Builders.    Andy is great from the first detail down to the follow up after the build. He explains everything thoroughly and does not cut corners in the build.    His … Continued
By Jenni Jordan 13 Jun, 2013
I just had a moment to catch up from the wild spring and start to the summer and was thinking about the new issues we are up against as builders and building customers.  The lots in Rochester are becoming very … Continued
By Jenni Jordan 16 Apr, 2013
The simple answer to this question is absolutely yes.  It would seem odd to think that doing something this simple can make a difference, but it really can.    As I have discussed in earlier blog topics, the heat in … Continued
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