Where does the Equity come from?
As you can see from the testimonials, it is common for a Castle Gate home to cost less (construction cost) than the finished appraised market value. The difference between construction cost and appraised value is typically 15-30%, and in some cases substantially more.
The old real estate adage "location, location, location" certainly is important in building instant equity in your new home. If you want to end up with a $150,000 home, yet move into that home with no money down and a $127,000 mortgage (instant equity of $23,000 or about 15%) the home must be built in the right location. If you build that $150,000 home in a community of $75,000 homes, your finished appraised value will be diminished. The home may only appraise for $130,000, simply because it is built near lesser quality, lower priced homes. However, if you build your $150,000 home in an area where the AVERAGE (comparable) home is selling for $150,000, you can expect positive equity because your construction cost will be lower. In other words, you must build a home that is COMPARABLE to other homes in the area in order to see the greatest equity.
Some of our competitors claim you can move in with equity, but don't be fooled. They base their equity potential on your "sweat equity;" they count on the fact that you're going to physically build most of the house. There is no doubt that if you choose to be a part of the physical construction of the home you'll certainly earn additional equity, and you can choose to do that with us. BUT- that is NOT THE ONLY way to earn equity in your new home the day you move in.
YOU CAN STILL HAVE INSTANT EQUITY IN YOUR NEW HOME AND NOT LIFT A HAMMER OR TOUCH A SINGLE PIECE OF LUMBER. YOU CAN HAVE THE ENTIRE HOME BUILT FOR YOU AND STILL HAVE POTENTIAL EQUITY. All because of the benefits of panelization.
Remember- there can be substantial cost savings with superior built, quality construction through panelization with a Castle Gate home... even with your custom home design.
10 ways your home Equity is created without breaking a sweat:
1. Less labor required to put the structure up because the house shell is panelized
2. Each portion of the house shell is built in our factory by a person that has perfected their job, creating a precision built home; certainly more cost effecient than a framer building a home on-site for the FIRST time.
3. The factory builds 600-700 homes per year. Large volume buying power of superior quality lumber equates to cost savings.
4. We only use superior materials. A home built with superior materials (#1 grade lumber, and all plywood construction) equates to a home that will appraise higher than a home built with lesser quality
5. Shorter construction time frame (which means less interest paid on your construction loan)
6. Guaranteed price up front: there are NO typical costly price overruns
7. Less cleanup cost at the job-site
8. Less material waste (you're not throwing out left over CUT lumber)
9. Less jobsite theft; it's hard to steal a wall panel
10. In many cases- because of the appraised value vs. your construction cost, your mortgage PMI insurance is eliminated, thus lowering your monthly mortgage payment.
How can I use my Equity? CLICK HERE
