Aspiring homeowners these days have more options than ever before. With new developments being built every year, homebuyers have the option of building a customized house instead of buying an existing home. Both options have benefits and drawbacks, so buyers should consider their options carefully.
New Homes: Pros and Cons of Buying
Buying and moving into an existing home is the more conventional choice and often the first option people think of when they start the home buying process. Pre-owned homes are less expensive than new homes, and buyers can look at many different houses until they find the home and neighborhood that’s right for them. Turnaround time between making an offer and moving in is also relatively quick–usually only 30 to 45 days.
On the other hand, the home you choose may not be as perfect a fit as one that you have custom-made. Remodeling is always an option, but the money may not be there after you’ve paid closing costs and other fees associated with buying a house and moving.
New Homes: Pros and Cons of Building
You don’t need to know how to build a house in order to choose this option. Instead, you’ll likely choose from several pre-designed options, and then a team of contractors will build your house from the ground up.
Home buyers who choose to build their own house experience many benefits, including:
- a certain amount of creative control
- involvement in important decisions
- more options for environmentally friendly heating and lighting
- peace of mind knowing that no one else has ever lived in the house, and the construction and appliances are all brand-new
- possible amenities such as a pool, workout center, playgrounds or landscaping
- residence in a new neighborhood, often with new schools and shopping centers
- the ability to watch the house take shape as it’s built.
However, building a home can be very expensive. You’ll have to pay the contractors, and home inspections cost money, too. Plus, missed deadlines and problems with contractors can make the process take longer than intended.
Build vs. Buy: Building New Homes
Building a house requires securing two loans: a loan to purchase the land, and a separate loan for the house itself. (If you buy an existing house, you only need to qualify for one loan.) Pricing for a new home varies by location as much as it does for an existing house. Your new home will be worth more if it is in a desirable location.
Once the plan for the house is approved, you’ll need to apply for a residential building permit, which establishes the conditions for the construction of your house. You can get this at your city hall. Bring along a copy of your house plan. The permit process takes two to six weeks.
via realestate.com