Home Finance | 11.02.2023

Should I Buy or Build a Home in Today’s Housing Market?

The housing market in Utah has undoubtedly changed over the past few years. While the post-pandemic housing market favored the sellers, today’s housing market gives the buyer an upper hand. If you are in the market for buying or building a home in Utah right now, you may have noticed that you have quite a few options. With that in mind, is it better to buy or build a new home in Utah in today’s housing market? Let’s break down your options.

Navigating the Housing Market in Utah with Arive Homes

Experienced buyers know that the housing market is constantly changing. But if you’re new to buying or building homes, you might not know what to expect. At Arive Homes, we’re the experts on reading the housing market in Utah and guiding our clients through challenging times.

Housing Market Overview

According to Redfin, the price of houses in Utah was up 6.5% year-over-year in September. While housing costs have increased, the number of homes sold has decreased by 21.8%. This is a change compared to previous years when houses sold relatively quickly. The average time for the homes to sit on the market was 42 days, and the median selling price of a home was $565,700. Even though interest rates have been climbing, the market remains stable and offers quite a selection of homes for buyers. Though many homes are available on the market, does it make more sense to build? Here are a few things to consider.

Building a New Home

You may wonder what to expect if you haven’t built a new home. Here are the steps you can expect when building a new home:

  • Find your perfect location

The first step to building a new house begins with finding the perfect location. As one of Utah’s leading homebuilders, Arive Homes has many beautiful communities across the state. From Herriman to Orem and Springville, we have a mix of townhome, single-family home plans, and senior living communities.

  • Get pre-qualified

The pre-approval process helps determine how much you can spend on a home. Once you have decided to build a home, you’ll begin the loan application process.

  • Reserve your lot, choose a floor plan, and sign a contract

After your loan has been pre-approved, you can begin reserving your lot, choosing a floor plan, and signing a contract to start the building process.

  • Customize your home

Starting the process of customizing a home is something that homeowners have dreamed of for many years; it’s the chance for homeowners to truly put a fingerprint on their home. During this phase, you’ll meet with our architectural and design team to find plans and selections that perfectly suit your taste.

  • Begin the homebuilding process 

Customizing your home is something every homeowner looks forward to, but beginning the homebuilding process is even more exciting. After completing all the construction paperwork, our team gets to work preparing the lot and building your home.

  • Start the financing and appraisal process

When your home is near completion, you’ll meet with your loan officer to finalize the financing process. A final appraisal will be completed, which is necessary to close the loan. Meanwhile, our builders will complete the final stages of your home.

  • Complete the final walk-through

A final walk-through, also known as a New Home Presentation at Arive Homes, is the opportunity to view the inside and outside of your home with our team. You’ll address any potential issues that need to be corrected and have the chance to ask questions about regular home maintenance.

  • Close and move in

About 30 days before the completion of your home, we schedule the closing date. You’ll receive the keys this day, and the house will be yours. You’ll meet with your lender, real estate agent, title company representative, and an Arive team member to sign all the necessary closing documents. Once everything is signed, you get the keys and can begin the move-in process!

Pros of Building a New Home

There are many benefits of building a new home instead of purchasing a currently existing home in the Utah housing market, just a few of which include:

  • Complete control over the design and layout

You could purchase an existing home and live with its layout, or you could build a new home with all the features and configuration you need. When you build a home, you’ll have the luxury of considering how you live to design a home that suits your lifestyle.

  • Modern features and energy efficiency

Smart home technology is quickly evolving, which brings many benefits to homeowners. Instead of purchasing an existing home and completing all the upgrades, you can build a new one and plan for all the modern features you need. In addition, newer appliances, improved HVAC systems, energy-efficient windows, and insulation help lower energy bills.

Personal Preferences and Lifestyle

When you purchase an existing home, there is often some give and take when it comes to accepting features that might not fit into your lifestyle. For example, you may agree to purchase a home with fewer bedrooms than you need because you like the neighborhood. Or, in another case, you might select a home that needs more updates but has the space you need. Instead of settling for a home that doesn’t fit your lifestyle, you can build a home with everything you need.

Resale Value and Investment

When deciding whether to purchase a currently existing home or build a new one, it’s essential to ask yourself about your long-term investment goals. In many cases, the cost to remodel a home often outweighs any return on investment if you were to sell the house. In many cases, new homes hold their resale values longer, giving owners more comfort and can even benefit long-term financial gain.

Build Your New Home with Arive Homes

If you want to build a home in Utah, you’ll want to find the best builder to consider your needs. At Arive Homes, we have abandoned the one-size-fits-all design to give you plenty of room for customization. With exceptional quality build and design, building with us is a no-brainer. Whether you’re looking for a home builder in Spanish Fork or Herriman, we’re the builder you can trust to help you navigate the housing market in Utah. Contact us to learn more today!