Should You Buy or Build Your Home?

When you are ready to settle down and make a big purchase on a home, there are two main options – buying or building. There are positive and negative aspects to both options, and it can be difficult to know which one is right for you. Buying a home may come with issues or details you cannot change, and on the other hand, building a home can take longer and be more expensive.

 There is no simple right or wrong answer when it comes to which way you’d like to purchase a home. When making this decision you need to consider what works best for you and your family now and in the future. Here we’ll go over the advantages and disadvantages of each option so you can have a better understanding of which option you want to choose.

Advantages of Buying a Home

There are many benefits to buying a home that has already been built.

Quicker to Move In

If time is of the essence for you, buying a home that already exists may be a better choice. Construction projects can take a lot of time, and there can always be unexpected delays that prolong the process. When you choose a home that is already built, you are able to move in much more quickly.

Urban Location

When you are looking for a home that is closer to a downtown area or in a city, building may not be an option. Many of these areas do not have plots of land available to be built on top of, so your only option, in this case, is to purchase something that is already built. If location is a huge dealbreaker for you, choosing an existing home in an urban area may be better.

Existing Landscaping

It can sometimes take years to grow full and beautiful landscaping after building a home. The construction of a home will take away any grass and shrubbery surrounding the house itself. If landscaping is something you do not want to wait for, buying a home could be a better option. With a built home comes existing landscaping that you won’t have to wait for, or worry about designing and paying for. Landscaping can make a huge difference in the appearance of your home so it is definitely worth considering.

Less Costly

For the most part, when you compare the price of building a home with the cost of purchasing one of a similar design and quality, buying is the cheaper option. You may have to do some renovations or put up with older details, but overall your budget can be much lower.  

If the home does require renovations, this can be a great way to personalize the home without having to build the whole thing from scratch.

Advantages of Building

Building a home is more time-consuming and expensive in general, but the pros may outweigh this for you.

Customization

One huge advantage to building your own home is the ability to customize it to your needs and desires. Older homes mean older floor plans and designs that may not be to your taste, but when you build a home you can make all of the decisions. Additionally, some aspects that may not be standard in most homes could be really important to you, and when you build you can ensure that your home has them.

If you’re not sure exactly how to go about certain customizations that you want, here are lots of custom home builderbusinesses that you can employ to help you make your dreams a reality.

Less Competition

When you fall in love with an existing home, you may not be the only one, which could mean trying to outbid another potential buyer. With a custom-built home, you won’t have to compete for a house you really love. Instead, you just have to worry about buying land to build on, and once you have that taken care of you will be sure to have the exact home you want without someone else wanting it to.

Less Maintenance and Problems

A brand new house is going to have a lot fewer problems from the start, and it will not require the same amount of maintenance that an older home does. Older homes also present the risk of asbestos, lead paint, and mold which can all be damaging to your health.  

An existing home has probably been lived in, and depending on how old it is could need renovations and more frequent maintenance. However, a new home will not need updates or renovations. For example, a new home can be built to be energy efficient, so you can save money in the long run without having to make any updates.

Disadvantages of Buying a Home

While buying an existing home has many advantages, it also has some disadvantages.

More Stressful

Buying a home can be incredibly stressful, and even with the help of a good real estate agent, you may have a difficult time finding a home with a style that is right for you. Many home buyers will have to compromise certain features and design preferences when buying a home because what is popular or in their taste today, was likely not when the home was built.

You can also find yourself in a bidding war over a home, and having your offers rejected can become discouraging.

Maintenance Issues

Depending on the age of your home you may have to deal with problems that require a lot of maintenance. Nothing lasts forever, and older homes tend to need renovations or replacements. This can be more than just hating the tile in a bathroom, often outdated appliances or structural aspects will need to be replaced for safety and efficiency reasons.

An older home is also at risk of having hazardous materials built into it because the standards were different when it was built.

Disadvantages of Building

While building a home gives you more freedom of choice, it also has its disadvantages.

More Expensive

Building a home can be an expensive project, and will likely cost more overall than purchasing one that is a bit older. Additionally, land loans can be more difficult to obtain because there is less collateral, and they will often have a higher down payment and higher interest rate than a  loan for a house. In addition to a land loan, you will also have to obtain a construction loan for the actual building process.

Building a house could come with unexpected costs as well if there are any unforeseen issues during the construction process.

More Time

Building a home will require you to wait out the entire construction process, which can take a long time and delay your move-in date. If you are looking to move in as soon as possible, building could be a less appealing option for you because of how long construction projects can take. There will also probably be delays, so a tight timeline would not be as feasible.

If you are going to build a home you will need to be prepared to make changes to your timeline and have somewhere to live until everything is complete.

More Effort

Even with the help of a builder, building a home requires a lot more of your participation. You will have an enormous amount of decisions to make and a majority of the time builders and project managers will need your approval before moving forward. Building a home is a much more hands-on undertaking than buying a home, and could end up being a stressful process on top of your other responsibilities.

Guest Contributor: Jenn Walker