Buying Vs Building A House
February 25, 2023
Which is the best route to take toward home ownership — buying an existing home or building one? While cost is the biggest determining factor in this decision, you have other considerations such as your chosen location and its current housing market, the features that you would want in a new home, and the entire process that goes with either option.
So, we’ll look at building a house versus buying one. Knowing the pros and cons of each choice will help you to make a more informed decision that’s best for your family’s needs.
Building Vs Buying a House: Is Buying Better?
In contrast to building, buying an existing home still gives you options in relation to location, design and features, and price. Basically, you can approach a realtor with a wish list of traits that you’re looking for along with a price range, and they can help you find what you want. Nonetheless, it has its own set of perks and disadvantages.
Pros of Buying a House
When you buy a new-to-you home, you can also expect a place that’s ready for move-in. During the process leading up to the sale, you would have viewed the home multiple times (whether in person or by taking a virtual tour), and ideally, there would’ve been a thorough inspection. So, you know that the structure is sound; all systems were in working order; plus, the floorplan fits your expectations.
Just the same, you’ll find mature landscaping and hardscaping on the property. Hence, you don’t have to worry about starting the lawns from scratch or renovating the outdoor living space—unless you decide to make changes once the house is yours.
Additionally, you’ll run into fewer expenses when buying an existing home. Aside from the down payment, closing costs, and mortgage-related fees, you wouldn’t run into anything unexpected. Being that you’ve been planning for this milestone for years, you would already be financially prepared or even pre-qualified for the mortgage as well.
Cons of Buying a House
Conversely, there is a downside to buying an existing home. For one thing, you might have some unanticipated maintenance issues that didn’t show up in the inspection. Usually, at this point, you’re on the hook for finding the necessary repair professionals and paying those expenses since the sale has already been made.
Moreover, you may have already compromised on some minor aspects of the home’s style and features. Perhaps, you didn’t find the open floor plan that you had wanted, or there are fewer restrooms than you would’ve liked. Or the backyard pool needs some additions to make it more kid-friendly. With existing homes, you can’t always find exactly what you wanted when you first started the process.
And speaking of the process, between making offers and counteroffers, buying a home can get rather stressful. Then, you have the application process for prequalification for a mortgage, which may not cover all upfront expenses. In addition to those concerns, you’re also feeling some pressure if you’re still trying to sell your current home. All these factors point toward the necessity for some serious planning and guidance.
Buying Vs Building a House: Is Building Better?
Starting literally from the ground up can offer some advantages for the home buyer, but there are some drawbacks. Let’s look at what you can expect if you opt for new construction.
Pros of Building a House
You’d have to admit that building a house offers a certain amount of freedom with your preferences. Instead of searching for an existing home that possesses all the qualities that you and your family want, you can work with the contractor and architect to customize the floor plan along with the outdoor features and landscaping. Once the construction and the interior finish work are completed, you have a home that’s move-in ready.
Another perk to building a house relates to the current conditions in the housing market. Although demand for existing homes may not always be high, there is still going to be competition between potential buyers. You have to worry about making a better offer compared to the next person.
However, when you’re searching for the ideal lot or plot of land, you won’t have to deal with as many buyers who want to seize that same property that you want. In this regard, new construction offers its own stress-free part of the process.
Also, you can expect more energy efficiency with a newly built home. Contractors incorporate the latest energy-saving, electrical, plumbing, and HVAC systems which are geared toward conservation and sustainability. Best of all, you’ll save on monthly utility costs in the long run.
Cons of Building a House
On the other hand, you might run into some obstacles during the construction process. While you may not experience problems with purchasing the lot, you’ll have to exercise patience as you await the completion of your new home. Naturally, new construction takes more time compared to waiting just 30 days to close on a purchase of an existing structure. Plus, the wait can get stressful if your construction crew runs into issues with the land or delays in the arrival of building materials.
Or you might have to pivot on some of the features that you were wanting on account of a lack of availability of certain items (i.e: settling for quartz countertops instead of granite). In this scenario, you might pay less for a different type of material, but the shipping still costs a lot. Overall, any home buyer would have to remember about new construction is to expect the unexpected.
Because of these considerations that go into the decision to buy a home or to build one, you need a team of experienced professionals to assist you as you go forward with your choice. Ultimately, gaining some insights from home-builder contractors can arm you with the information that you need when building a home or choosing one from a vast number of listings.
May 27, 2023