When deciding to buy a new home, there are two main routes you can go: either buying an existing home or building your own. While building a home can be an exciting prospect, there are some factors that you should take into consideration before going in this direction. Here are some of the pros and cons of building a home.
Pros
MORE CUSTOMIZATION
One of the biggest benefits of building your home is the amount of customization you have. This can include the layout, flooring, colors, and more. This means you won’t have to worry about making any changes once you move in.
NO COMPETITION
When buying an existing home, especially in the current market, you are most likely not going to be the only person interested. Getting into a bidding war over a home can lead to you paying more than you anticipated or being disappointed on losing the home. When you build, you don’t have to worry about competition as builders usually negotiate the lot purchase before you buy it.
NEWER ITEMS
Repairs come along with the home ownership package. However, with a new home, the chances of having a leaky roof or needing to replace the furnace right off the bat are low. You may also be able to take advantage of warranties that aren’t necessarily available for existing homes/appliances.
Cons
UNPREDICTABLE SCHEDULE
When buying an existing home, the general timeline from making an offer to receiving the keys is pretty standard across the board. If you decide to build, the timeline can be a lot murkier as there are outside factors, such as weather, that can impact the process. If you are on a strict timeline (such as a lease ending) you may end up in a gap where you need to move, but your home isn’t finished.
HARDER TO BUDGET
The money you spend building a new home can add up very quickly. While upgrades and add-ons are available, these will also cost you additional funds. Decide what is most important to you now, such as wood flooring, and save for easy upgrades down the line.
NO NEGOTIATION
For an existing home that’s been on the market for a while, you may be able to negotiate a lower price, have the owner cover closing costs, or even be able to keep the washer and dryer. For a new build, however, the base price is usually what you will end up paying.
