Buy, Build or Renovate in South Surrey – Springtime usually brings with it the urge to clean, renew, refresh and build. This year, that urge is stronger than ever. Spending so much time at home and unable to travel, many homeowners are turning to home improvements, renovations, new builds, and home sales.
The real estate market in the Lower Mainland is once again making front-page news. Homes are being snapped up in a few days, many going for over asking price. As a result, many homeowners are turning to renovations or are considering building a new custom home on their existing property.
A recent study has found that the value of residential permits in BC is up 34% over the same time last year. Some of that growth can be attributed to a few large-scale multi-family dwellings. But overall, we are seeing a surge in both renovations and new builds across our region.
Before you make the decision to sell, build or renovate, let’s look at a few of the considerations to keep in mind.
Buying a New Home in South Surrey
Just turn on the news or jump onto social media and you’ll see that the local real estate market is seriously heating up. Homes are routinely going over-asking. Inventory is low and it’s definitely a seller’s market.
In February, the average house of a home in Surrey went for $1.1 million. (Surrey is the seventh fastest-selling region in the lower mainland.) Last year at this time, homes valued at $1M to $2.5M spent 25 days on the market. In February 2021, that dropped to just 10 days.
All of this means that it can be challenging to find the right home for you and your family. Such market pressures indicate it could be a better idea to renovate or do a custom home build on your existing lot.
Interest Rates
With interest rates as low as they are today, many are seizing the opportunity to make changes to where they live. But if there is anything we’ve learned over the past year, it’s that you never know what’s coming around the corner.
If interest rates rise, what will that mean for your future mortgage payments? While we always advise our clients to plan ahead and build for tomorrow, you also need to consider what higher interest rates would mean for you and your family.
If you are concerned about rising interest rates, renovating (which usually costs less) may be a better route to go than building or buying.
Photo: Surrey City Hall
Legal Considerations
Before you set your sights on a custom home build on your existing lot, it’s important to do some research. The city of Surrey, your bank or lender, and the local homeowner’s association (HOA) may all have a say in possible next steps.
- Head to City Hall. (Virtually!) It’s important to research what limits the city of Surrey places on home additions and structural changes to your existing home. They will, of course, have to approve your plans before they will issue a building permit. (More on that below.) They also control whether you can tear down your existing home and put up a new custom built home.
- Meet with your bank. Your lending institution may not let you tear down your existing home to build a new one on the same lot. That’s because the bank loses its collateral. Your lender may force you to sell or remodel in order to get your dream home.
- Contact your HOA. HOAs usually have an extensive list of restrictions and regulation to do with home renovations and new builds. A teardown may not even be an option.
Building a New Custom Home in South Surrey
Let’s talk about the advantages of building a custom home:
- A custom home can be designed to meet your exact needs and wants.
- Homes built today are built in compliance with many new energy-saving technologies that will make a difference to your monthly household expenses in the long term.
- Nearly everything in the new home will have warranties for parts and labour.
Renovating
In some ways, a renovation can seem easier. Some things to consider:
- As a general rule, a home reno doesn’t take nearly as long or cost as much. (Kitchen renovations and master bathroom renovations are the most common types of renovations we see in your area.)
- Depending on the scope of work, you might be able to stay in your home while the project progresses.
- You’ll be able to update your appliances and wiring to today’s standards and upgrade the plumbing.
- But as mentioned above, you may be restricted by what you can change, add or build.
Timing
Renovating or building can both take a lot of time, more than you may realize. And today, delays are even more common due to the effects of COVID-19 on permitting and supply chains.
Many employees at the City of Surrey are now working from home, affecting the time it takes to process permits. And while they are looking at ways to expedite the process, it’s still not business as usual.
The good news is that building departments seem to be working out the bottlenecks and improving speeds. Permitting is not taking as long as it was six or nine months ago.
The supply chain still isn’t as streamlined as it was before March 2021. Lumber prices are also set to increase.
Here’s one of the most important things we advise clients: Planning is everything. It’s important to start planning as early as possible to ensure that your project can be completed in a timely manner.
Bottom Line
Deciding between a custom-built home and a home renovation is a big decision and a very personal one. But no matter which road you take, we here at Alair Homes South Surrey are here to help you through every stage of this project. Contact us to discuss your goals during a complimentary, no-obligation consultation.