BARNDOMINIUMS - Pros and Cons!

is investing into a barn dominium in South Carolina really a good idea we're going to talk about the pros and cons of owning one or having one built in today's video [Music] now barndominiums have become very popular in the South especially in the past couple years but their popularity is spreading throughout the entire U.S if you just go to Google Trends and you look at barndominiums you can see that the level of excitement about them just kind of do like this up until the summer of 2020 then it skyrockets now just in case you're not familiar with what a barndominium is I'm going to sum it up real quick for you sometimes referred to as barndos please I'm praying let's not humanize making Barn doe a word they're barn style buildings typically made from steel metal or wood that are used for residential purposes normally barndominiums are large rectangular structures with huge open living Concepts giving you the owner more options to customize to your liking while there are some barndominiums that are being converted from Barn to home new constructions on barnominiums seem to be the thing that the trend is moving towards however today we're going to cover the good and the bad of the barndominium craze let's start with the bad news first let's start with the cons now one of the biggest cons is going to be refinancing we're definitely in a point in time where rates are much higher than they have been in previous years and I'm sure you've heard the phrase marry the house date the rate well in the case of a barndominium you may just be forced to put a promise ring on the Barn's little wooden finger or middle finger since barndominiums are such a New Concept obtaining financing can be a huge challenge whether you're looking at a new construction which can possibly be the bigger challenge or buying a barndominium that's already constructed now from being in the industry of real estate what I've learned about some lenders is they may use something called an in-house loan or a portfolio loan since they really can't put it in a traditional loan category what this does is it locks you into their proprietary system versus say a Freddie Mac or Fannie Mae which is available to homes across the country now if you do decide to try to obtain financing for a barndominium and you decide to work with a builder inquire about a float down option with a float down option simply put but you'll want to get more information from an actual lender it's where you lock in the current market rate and then over the course of time if the rate lowers you can go down with that rate but with no risk of going higher that is put in very layman's terms I highly encourage you to go talk to a lender if you look into this process just mention the float down option now another huge con about owning a barn to medium is the resell ability when a home is listed for sale it's going to be appraised and one of the ways appraisers conclude what your home is worth is by finding comparable homes and since you don't see a barndominium on every corner of every street nowadays this could provide some challenges for appraisers and it may cause you not to get the best value out of what your home is actually worth now while that brings issues in and of itself this is going to potentially reduce the number of buyers if a buyer even gets a whiff that the appraiser is having a hard time finding a price to compare it to the buyers are gonna most likely get nervous and may flake out on the opportunity to buy the next big con is just simply getting funded and financing the project to begin with what's funny is I've heard a few folks actually say when you go to get funded and try to get a loan just don't call it a barndominium call it a custom home nice try you almost had the banks fooled and we would have succeeded if it hadn't been for these metal and ladies and lashes no matter what you call the home or the style of the home being built the banks are going to look at how it's being built and how the home is constructed overall now clearly a barndominium is going to be built differently than a traditional home now this already poses a huge challenge just to get the loan but when a bank has to struggle to find something comparable to in order to get the estimate of the value of construction that's never a good thing and could seriously slow things down or completely put a halt on the whole project and if you're a South Carolina resident The Ugly Truth as of right now is a lot of lenders just aren't giving out money they're just not going to do it now if you're a lender that's watching this please comment below if your firm does indeed work with folks looking to possibly newly construct a barndominium now another con of trying to build your own barndominium is being forced to work with Builders now builders that are watching this before you come at me I get it there are a lot of good Builders out there and you watching you're probably one of them I've worked with good Builders however even good Builders would have to agree with me that there are really terrible Builders out there as well just like in any profession you're going to have professionals that you can't say enough good things about and then you're going to have some that you never want to see again no no he's got a point in a lot of ways you are at the mercy of the Builder now the Builder's job is to make you happy they don't get paid unless they make you happy but in a lot of situations they're in the driver's seat versus you and there's things that you need to do to make sure you are protected let me take my realtor hat off for just a second if you're going to work with a builder get yourself a realtor before you communicate with a builder even if you don't use me as your realtor get one the terrible builders that I mentioned before may see you as extremely vulnerable and easy prey to take advantage of however if they know that you have representation in someone who knows more about the systems and the processes that have to happen and be in place for this to go through they're less likely to take you for a ride and really take advantage of you and if you're asking yourself the question well Josh don't Builders hate it if you show up with a realtor don't they don't they tend to frown upon that and my answer to that is a good Builder will have no problem working with a realtor this is coming from someone who has also worked in the paint industry and had to work with Builders and for Builders and I can tell you with confidence it would be wise to look out for who you work with Okay okay okay that's enough Doom and Gloom about barndominiums now we're going to talk about the pros and why barndominiums are so popular and such a sought after unique piece of property now some of the good news is that there is a future potentially for a wider acceptance it's newer and lenders are a little more sketched out about having to give money for something that's so new and hasn't been around for a ton of time I mean heck just look at online dating and online dating apps 10 20 years ago you had everybody in your family telling you not to get online to find a date or maybe even a new boyfriend girlfriend or spouse however now it's tough to not know someone who has found a partner from said online dating apps so you must be Mike yes I am Mike just like with any newer thing with time with the right systems and processes put in place I can see barnominiums having a very very bright future okay so one of the biggest Pros is your ability to customize customization is going to be much easier and simpler with a barndominium just the roof alone in most barnuminiums and I think possibly all barnuminums the weight of the roof is carried throughout the perimeter of the home and because of that you're going to have options that you wouldn't normally have in a traditional home amongst other ways that a barndominium is designed a huge Advantage when building a barnuminum is going to be the build time from what I've seen and heard build time and a barndominium is significantly less than a traditional home after the concrete is poured which is going to take a lot more concrete than a traditional home you're looking at a fraction of the time it would take to build a traditional home I've heard of some even going up in less than a month now another huge benefit to a barndominium is going to be how energy efficient it can be when you insulate a metal building just right it can be very cost efficient for future energy bills now other than being efficient barndominiums can also be extremely durable they're metal or steel shells help make them resistant to mold rot and the elements definitely more so than a traditional home low maintenance and possibly a longer lifestyle fan is one of the other benefits you can come to expect with a barndominium since traditional homes are built with a lot of different materials you have to take certain measures and precautions when protecting your home that you just don't have to do with a barndominium just a thought I seriously hope nobody is playing a drinking game with how many times I say barndominium born Dominion Barnum Dominion a metal bar nominium can also provide you with a ton of safety for one metal and steel structures are going to be way more resistant to fires than a traditional home quite possibly one of the things that make a barnuminum so desirable is that it's simply different and modern amongst being able to highly customize your space and have huge open floor plans to maybe customize an office a home gym or a play area for your children that would rival space that kids might have who live in a mansion it's something new it shakes the real estate industry up a bit now if you're wondering where I stand on barnominiums if I took my realtor cap off again and just looked at barnominiums for what they were and just living in one as just a consumer I love the idea of a barndominium despite the headache of having to find land for it once you did find your land and you went through that process which by the way is another underwriting process it's another contract you have to negotiate and get done the pros may just outweigh the cons for you when dealing with a barndominium however if you are a pain with cash I'm going to let you in on a little story that I was just recently told by a colleague from someone who is currently having a barnominium built and is paying cash while working with a builder so the concrete has been poured and most of the walls are up and the structure and framing is for the most part done however there are openings well a few weeks ago here in the upstate of South Carolina we had a ton of rain and in this poorer couple's particular area there were a lot of cows who decided to take refuge inside of their not yet finished barndominium for quite some time now if you're trying to think ahead to how this story ends you might have an idea well when cows are positioned in one place for long enough they have to relieve themselves and let's just say by the time the cows left there was an insane mess and the builders quite frankly told the buyers this is on you not us understandably so and that it was up to the buyers to clean that mess up and I don't know how many cows there were but one [Music] now while this seems like an extreme story in an extreme situation it happened locally and things like this can come up that you would have never dreamed about like I always say in these videos instead of looking to the comments for somebody else's experience or heck even a realtor on YouTube do your own research gather your own information and align yourself with experts who have actually been through transactions involving barndominiums and yes I'm sure you may know a builder who can build a barndominium but I would highly advise you to find first someone who has a portfolio of already completed barndominium lucky for all of you watching and if you're interested in building one you're not going to be the first one so let somebody else's past troubles benefit you they went through it so that you don't have to now while this isn't an exhaustive list of pros and cons I do hope that it's been a nice guy guide or it's provided you with some information and if it has don't forget to like And subscribe now if you ever need anything in the upstate of South Carolina real estate related I'd be happy to help you my information will be right here whether it's a new construction traditional home or yes even a barndominium I can help you until next time I've been Josh Oglesby with Upstate SC living and real broker LLC reminding you to work hard be kind and do enjoy yourselves [Music] foreign [Music]

Channel: Upstate SC Living

Views: 121,596

Keywords: what is a barndominium, barndominium build, barndominium cost, real estate, barndominium tour, real estate market, south carolina barndominium, barndominium homes under 200k, barndominium, barndominiums in sc, barndominiums in south carolina, greenville sc realtor, upstate realtor, upstate south carolina, easley south carolina, pickens county south carolina, greenville county south carolina

Id: WhoL7xapg9E

Length: 13min 5sec (785 seconds)

Published: Wed Mar 08 2023