How We Navigated Building New & Selling in A Tough Market
How to navigate building and selling (from a family who did it)
"Whatever the market's going to do, it's going to do it. The longer we wait, the higher rates could go."
The Real Numbers:
- Starter Home: $126K townhome at 3.4% (FHA)
- New Build: $402K at 3.7% (Conventional)
- Total Down Payment with Closing Costs: $53K
- Monthly Payment: From $1,100 to $2,900
Why Trade Up To A More Expensive Home?
"We needed the space for our growing family," Marissa explains. "We knew that we didn't want to stay in that same [home] for another five years; that just wasn't going to work having one to two more children."
The decision wasn't just about space, though: "You work hard every single day, we spend so much time away from the family to provide for the family, and we knew we wanted to be able to end the day in a space that we were happy with and that we could be happy with for at least five more years."
» MORE: Calculate your true move-up potential with our Affordability Calculator
Making the Decision to Build
"It took us almost a year to find a [home] I would commit to," Marissa admits. Due to the market conditions, they had to pivot back and forth between building a new home and buying a pre-existing home. Marissa shares, "We put in a lot of offers that did not get accepted because we were contingent," meaning their townhome would need to sell before they could buy a pre-existing home. They discovered that current homeowners considered their contingency to be too risky. When homeowners wouldn’t accept their offers, they went back to looking at new builds. Persistence paid off. A year later, they closed on their brand new home just before selling their townhome - a stressful but ultimately successful strategy.
Their Approach to Building A New Home
"We went into it understanding what we could afford"
"We knew we wanted a larger home in a different area. We planned, and we saved," Marissa shares.
- Researched multiple builders thoroughly and toured their model homes
- Got more than one pre-approval from a lender
- Advocated for better terms and secured interest rate buy-down
- Made strategic upgrade choices
When Plans Get Derailed
Their path wasn't straight: Rates jumped from 2.75% to 5.99% during their building process (which took about one year), their townhome buyers' loan fell through, and their dream media room became unrealistic. But they stayed focused on the end goal.
The Selling While Building Strategy That Worked
- Considered using their first home’s equity as a significant down payment but had enough savings if their home didn’t sell fast enough
- Maintained strong communication with their realtor, lender, and builder
- Remained flexible and committed when the Builder’s made unexpected changes
- Worked as a team to operate in their strengths (organization and decision-making)
» MORE: Compare your current vs. potential payments with our Mortgage Calculator
Managing Unexpected Challenges
- Their first lender abandoned them, so they pivoted to another
- The Builder hiked prices. They compromised on features
- Their first Buyer fell through? They stayed committed to their dream home
How They Stayed Motivated
"We come home every day and end our night in a space that we truly call home," Marissa reflects. "For anybody on the fence - the longer you wait, the more expensive it will become. We knew we were going after a significant investment, but we were prepared." Marissa considers their home purchase to not only be a place where her growing family can thrive but also an investment. Alongside her faith, this thoughtful, long-term perspective anchored their decision-making process. Even through the ups and downs, they remained dedicated to their vision.
The Bottom Line: Your Family's Next Chapter
Today's market isn't perfect, with higher rates and prices than many would like, but Marissa and Malcolm's journey shows that building your family's next chapter is still possible with the right approach.
Their success came from staying flexible when challenges arose: adapting their must-have list, navigating multiple loan scenarios, and focusing on strategic choices rather than perfect conditions. While their path included unexpected turns, they stayed focused on their core goal: a better home for their family's future. Their experience proves that with proper planning, wise use of builder incentives, and willingness to adjust your strategy, you can successfully navigate both building and selling in a tough market.
» Get Free Access Now: Learn what to expect during the home buying process from beginning to end with our Free Home Buying Guide