Should I Build Or Should I Buy A Home?
If you are in the market for a new home, you may have considered building from scratch instead of buying a resale home. While the decision isn’t always simple or obvious, each option has its pros and cons.
Building a new home – advantages
Control over details You can personalize the details of your home from the ground up – so you have more control over details. Everything can be the way you want right from the beginning. You can customize the paint, the flooring, appliances and much more. There will be no remodeling costs.
More efficiency. A new home is built to meet current building codes, incorporate the latest technology and is often more energy efficient. You will spend less on energy as your appliances will use less energy and your home will be better insulated saving you on heating costs as well.
Everything is new. The floors, ceilings, roof, siding, appliances, windows, etc. will be brand new. Most will come with warranties that are likely to be covered for several years. Chances are that the first few years of home ownership will incur very few costs for repairs, and you will not have to deal with any unpleasant surprises!
Building a new home – disadvantages
Delays, delays, delays. It is not uncommon for a building project to experience delays – blame a lot of this on the weather. Delays can be costly especially if you have sold your existing home and plan to move into the newly constructed home. They can also frustrate you mentally.
Issues with the builder. Having a reliable builder is very important when it comes to getting permits, construction loans, adhering to the building code and timely completion. If you have a builder who does not cooperate with you regarding the aforementioned issues, you can experience a lot of stress and anxiety, not to mention the added financial burden that may arise from this.
Budget limitations. You may want to factor in certain upgrades, which could be pricey, and you could end up spending above your budget.
Buying an existing home – advantages
Room for negotiation. A resale home is usually less expensive than a new build and you have room to negotiate the price (as long as there is no bidding war.) If the market is “soft” then you can end up with an attractive deal. With a new build, once the builder has set the price, there is no more room for negotiation. If market prices have dropped, your price will stay the same.
Easier to move in. Once the deal is closed, for the most part, you can move into your home without further delay. There is no wait time and no need for temporary housing.
Easy to visualize and renovate. With a completed home, you are able to see the existing home’s floor plan and layout. You have opportunities for home improvements and changes from the moment you take possession of the property.
More desirable locations. A resale home may be found in a more desirable location, with close proximity to schools, urban centers and recreational facilities; and the established infrastructure may allow easy access to these facilities.
Buying a new home – disadvantages.
May require extensive repairs/renovations which can be costly. If you want to renovate a home that is already built, you may face a huge investment in time and money, which may not be worth the effort in the long run. Even simple remodeling can cost a lot.
Fewer amenities/older appliances. When you buy an existing home, you could inherit appliances and home systems that may cost you money in updating or keeping in working condition. As far as the appliances are concerned, older appliances are less energy efficient and may eventually require expensive replacement.
Buyer’s remorse. You could experience this if you end up not too keen on the existing floor plan. You may have gotten a good deal on the price, but in retrospect you may have regrets. This could affect your lifestyle, as you would be living in a home you were not happy with.
With all that said, every market is different—just like every buyer is different. The best way to choose the option that’s right for you is to talk it over with an experienced real estate agent. Your agent will know where the deals are, whether you’re interested in the long-time neighborhoods or the up-and-coming communities. And they’ll help you decide whether building a house or buying an existing home will suit your needs best. Contact us If you’re looking for an agent who’s willing to do what it takes to help you find the perfect home.