Building vs. Buying – Which is Right for You?
This is a difficult question to answer since the reasons may vary for every person. Here are some simple pros and cons to help you make your decision:
Pros of Buying
- Don't have to wait for the construction process: Building a home takes time and can vary depending on outside influences like weather and supplies. If you cannot wait, then buying a used home can allow you to move forward quicker.
- May find more options in your desired location: In some instances, all suitable lots are taken with existing neighborhood builders, and this might be exactly where you need to be.
- Mature Landscaping: Existing homes will likely have some landscaping and no need for you to invest in that later.
- Modify Later: You can always invest in modifying your home later when you have the time and money.
Cons of Buying
- Time and Effort spent looking for the perfect Home: Searching for the right home can be a real investment in time and you may still have to compromise depending on inventory available.
- Competing with other interested buyers: Especially in today's market, with limited inventory, you may find yourself in a bidding war time and time again.
- Challenging to find Exactly what You want: It can be tough, maybe impossible to find the exact design you want so you must be willing to make sacrifices.
- Older homes can have hidden Issues: When purchasing a used home, you can't see behind the finished product to determine quality, craftsmanship or any possible issues.
- Less Energy Efficient: Older homes, depending on age, are likely to be less efficient and lead to higher energy costs.
Pros of Building a New Home
- Total control: If you have a dream floor plan in mind in a particular location, then building a home will give you the ability to make your Dreams Come True.
- Personalized to You: You can make decisions on fit and finish when building the home, so it reflects your tastes and lifestyle accordingly.
- No Competing with other Buyers: After you buy the land, you won't have to deal with any competition for your dream home.
- Less Ongoing Maintenance: A newer home can mean fewer maintenance costs on the horizon not to mention the warranties that come with it.
- No toxic materials: You won't have to worry about materials such as asbestos or lead paint in a brand-new home.
- More energy efficient: New Homes are built with energy efficiency in mind. If you're concerned about your environmental footprint, you can make choices throughout the build to create a more sustainable home for your future.
Cons of Building a New Home
- Different Loan Approval Process: When building a new home, the bank has no existing collateral, so there may be a few more hoops a lender requires of you when getting approved.
- More Difficult to Predict Costs: Some builders operate on a Cost-Plus Basis. This means there's no guarantee on the final price. Make sure to understand how Your builder operates before signing a contract.
- More Work Upfront: This process requires an investment in time up-front; from possibly finding land, to the plan that works for you, then personalizing it to meet your needs, and preparing to build Your New Home. So, be prepared for this investment at the beginning it will be worth it.
- Waiting Period: Building a Home does not happen overnight, it takes time - Sometimes longer than expected. This process can be challenging if you do not understand everything about the process beforehand.
- Land Improvements - Before and After: When building a new home, it can be a lot to learn about what goes into this process. When buying a used home, you don't think about the permitting, clearing & grading, the water source, the initial power, the septic system, driveways, backfilling, landscaping, etc.
So just brace yourself for lots of learning and know that all these things had to be done for every home you see.