Getting a new home is an exhilarating experience. While getting your dream home is not an easy task, one of the major decisions you have to make is whether to buy a ready-to-move-in house or build a new one. Both options come with advantages and disadvantages, but the choice will depend on several factors, including the location, price, property taxes, market trends, homeowners’ association costs, and how you intend to use the home. Thus, before making your decision, ensure you conduct comprehensive research and identify what suits you best.
Below, we outline the pros and cons of each option.
Benefits of Purchasing an Existing Home
For many, purchasing a home is as satisfying as constructing one. While it’s a significant investment, buying an existing home comes with two essential benefits: convenience and cost. Once you become pre-approved by the lender, you can go house hunting, choose a home, and make an offer.
Home builders can streamline the buying process by helping you find the best properties, walking you through negotiations, and helping you with paperwork. Once your offer becomes accepted, you can sign the dotted line and then move into your new home in no time. Although the buying process involves several steps, including financing, shopping around, making offers, inspecting the house, and closing, the convenience of managing to move in immediately is compelling enough for you to prefer an existing home to building one.
If you have a tight schedule, such as relocating to a new area for work-related purposes or your children enrolling in a new school, buying an existing home might be the most viable solution for you. Building a new home requires time to complete. But if you don’t have enough time, buying an existing home can allow you to move in quickly.
When it comes to cost, it’s cheaper to purchase a ready-to-move-in home in most cases. A home loan has fewer risks than a land loan and usually comes with an affordable down payment and competitive interest rates.
Another benefit of buying an existing home is the possibility of getting a property in your desired location- near work, school, family, or friends. Also, you have greater chances of finding a home with mature landscaping, so you will need not worry about the costs associated with starting your yard, planting shrubs, and waiting for the plants to grow.
In addition, buying a house gives you more bargaining power. With existing real estate, you can leverage data to find a competitive price. For example, if the house has stayed on the market for over a month, the seller could be willing to reduce the price. Alternatively, if a similar home in the neighborhood is priced lower, you can use it to justify your low offer.
Drawbacks of Buying a Home
One of the main disadvantages of buying a ready-to-move-in house is that you may not find what you want. For example, you may not like the floor plan or wish the main floor had another bedroom. Older homes, in specific, might be functionally outdated, no longer fulfilling the needs of most buyers. For example, an eye-catching four-bedroom house may feature only one bathroom, or the kitchen might be small with no space for expansion. Thus, you may have to incur extra renovations, repairs, or landscaping costs.
Benefits of Building a Home
With building a new home, you get precisely what you want. Rather than wishing your home had a certain floor plan or other special features, you will manage to tailor your home to your precise needs. It does not matter where you are located physically, you can find home building services wherever. For instance, you can get custom home builders in NC or affordable home building services in Denver. Wherever you are, you will be able to find the best trained professionals to turn your dream into reality.
Another advantage of constructing a new home is that you avoid the hassle of looking for the best offers. You can remove the back and forth with other home buyers from the equation.
A brand-new home also comes with less repair and maintenance costs, and you don’t have to worry about toxic materials like asbestos or lead paint.
Cons of Building a New Home
High construction costs and a longer time frame are the most significant drawbacks to constructing a new home. These two factors are also bound to increase throughout the construction process.
Besides, building a new home requires more effort. You have to work closely with a wide variety of experts to create your dream home and make several choices along the way.
Also, you will have to find the land to build on and prepare it for building.
The Bottom Line
Buying an existing home or building a new one is a hard choice to make. Both options have pros and cons. However, to make a sound decision, ensure you conduct a lot of research. You may also choose to consult a reliable real estate agent. This decision can save you a lot of money and headache down the line.