Should You Buy or Build a Home in Sedona?

I recently met a couple who was visiting Sedona hoping to "own a piece of Sedona", and live here in this wonderful community. The couple has been working with a great local Real Estate agent who has been showing them inventory of existing houses. Their experience so far seems to fall short in either price, location, size, style, age or remodel cost. For example they might see a house in a great location, but the asking price is so high that there is not enough margin for a remodel. You can imagine all the possible scenarios! "Good price, but too small". "Great size but awful style". "Love the style but very old". It can be exhausting. And to compound the search, the inventory in Sedona is as low as it has been in many years. This is a perplexing problem, since folks want to get into the Real Estate market as soon as they can before prices and interest rates climb. So if you think you'd like to build, there is good news when it comes to the cost of land and few things to keep in mind about remodels in the current market.

Home prices are rising at a modest rate of about 12% a year while land prices are still very low. In many cases the cost of land has fallen by more than half its value from the peak market in 2008. This gives you a decent margin to work with in construction. The cost of new construction can have other advantages. It is not likely to rise as fast as the cost of existing housing. So it may make sense to get in "while the getting is good". There is also more economy of scale when you build an entire house. All of the trades are in place for every type of construction, so kitchens and bathrooms are less expensive to create from scratch instead of remodeling in the current market.Some remodels can work out fine especially if they are minor, or you plan to stay in your home for the long hall. However there is a tipping point where you are much better off to build. If the remodel is "major", you must factor extra cost for demolition and hidden surprises. Infrastructure issues like insulation, windows, siding failures, outdated plumbing, wiring, heating, cooling, roofing, drainage and foundation problems, can be difficult and expensive to correct. Some remodels just don't pencil out. Ironically, in the end you still may not be fully satisfied with how well the house fits all of your needs.So if your search is not working out, it may be a good time to think about buying land in Sedona and building the house you really want...before land and construction costs start to rise more aggressively. And they WILL.

Here is some advice on finding the best lot.

• LAND SURVEYS: Obtain a land survey provided by a profession surveyor. Be sure it includes the contour mapping, property lines, utility locations, tree locations, set backs, easements, encroachments, and drainage locations. It is best to obtain a 3D electronic file that can be used by your house designer should you move forward with a design.
• PROFESSIONAL DESIGNERS: Add a Sedona building designer or architect to your search team.  Also seek the advice of a Sedona interior designer so the inside of your home will fit your patterns of living.  These professionals see the potential of vacant land differently than a Realtor or a least they add a different perspective. A professional designer will analyze the orientation of the lot for views, privacy, contour, sustainability, constructability, space planning and design.
• CONCEPT PLANS: Have a conceptual plan worked up by an experienced designer. It is good to "test" the lot to see if it will meet your basic needs.
• BUILDERS: Add a good builder to your feasibility team. Builders add their own perspective to a new home project. They are the experts when it comes to construction issues and construction costs. Together with a designer, a builder will help you build a construction budget.

I hope this helps you as you peruse the idea of "owning a piece of Sedona". A new home now is a great investment. It can be designed to your liking to be the right size, in the right style, location and so on. Please contact me if you need a Realtor who specializes in land sales, or a Builder. I am happy to make referrals. I am also happy to help you search for land or evaluate a possible remodel! I am not a Realtor, but I am passionate about designing good houses.