Deciding whether to build or buy

People ready to own a home in Craig often face a tough decision -- whether to buy an existing home or find the right piece of land and build a home.

There are benefits to either route. But what most motivated buyers want to know is which one will be the most economical and what will give them the most satisfaction.

For buyers who can afford to get into mid-level and higher homes, on paper, building a home can appear to be less expensive.

However, unforeseen costs during construction and the buyer's personal situation must be considered.

Technically, it is less expensive to build. A local Realtor explained that if two similar properties were for sale, side by side, except one had a home built on it and one was vacant land, generally, it would be less expensive for the buyers to purchase the empty lot and build a home similar to the neighbor's.

However, that is in an ideal world, he said. Who knows what can be underneath the ground, for example, that could throw costs off. He recalled seeing a $100,000 difference between the foundation costs on the two adjacent properties, because one of the lots had large boulders to remove while the other didn't.

The amount of time the owner can spend on the construction site also plays a role in building, too.

If the owner is banging nails and being a major player in the construction and planning, significant cost savings can be achieved. However, the owner also can be rudely awakened by how time consuming, and cash consuming, the process can be.

Someone who plans to work on building his or her own home must consider the financial impact of doing so. Is there time off from work that has to be taken? Is the family renting while their new home is being built? Is it an out-of-town buyer who is paying to travel to the Yampa Valley frequently to build the home? All are indirect costs associated with building your own home.

Buying a home that is already built often is less expensive - and more practical - when such indirect costs are factored.

But the homebuilder has two important perks that come from successfully weathering a construction process.

The first great perk is that the house is built around what the owner wants. If it works out, the owner can have an influence on every nuance of the home.

The second is the reward of seeing the project through, especially if the buyer has a hand in the construction process.