You ready to buy a home – congratulations! Now you have one very large decision to make – should you consider building a new home or buy an existing home? The answer isn’t an easy one. You have to think of the pros and cons and how they apply to you. Some people do great with a new home, while others prefer the comfort of an existing home.
Here we will discuss the pros and cons of a new home so that you can decide what is right for you.
The Benefits of Building a New Home
There is one obvious benefit of building a new home – everything is brand new. You get the look and design that you wanted. Along with the cosmetic pleasure, you get from the home, you’ll also see several financial benefits.
Many new homes have lower utility bills. This can enhance your savings right from the start. New homes have more energy efficient options in them. They also have brand new appliances, which are also often energy efficient. When you use less energy you have lower utility bills. You also create less wear and tear on your utilities, giving you more life out of them in the long run.
You may also get a more open layout, which can make entertaining and daily living a little easier. Newer homes have adopted the open floor plan, while older homes are more closed off or separate. If you envision doing a lot of entertaining in your home, the open layout can be a great benefit. If you build your own home, you have the input into what the layout looks like, so you know it will suit your needs.
Lastly, you won’t have to remodel any time soon. Buying an existing home often means there are things you don’t like about the home. If it’s something you cannot live with at all, you may have to put a lot more money into the home making the necessary changes. For example, let’s say the kitchen doesn’t suit your needs. You could end up spending between $12,500 and $33,000 on the remodel. This greatly increases your cost of the existing home.
The Disadvantages of Building a New Home
Of course, with the good, must come some bad. Let’s look at the downsides of building a new home.
Unfortunately, money doesn’t grow on trees. You may have grand ideas for the home’s layout in your head, but your bank account dictates what you can and cannot have. If you don’t have the money for the perfect layout, it may not make sense to build a home. You may not get what you want after all. Shopping for an existing home with a similar layout may be the better choice.
The cost of upgrades can really eat at your budget. If you can’t afford the upgrades you want, you may be stuck with a layout you don’t love. Again, you can shop around for an existing home that has the upgrades you want or at least a layout you can live with for the time being. When you build new, you want to do everything at once. Buying an existing home could allow you to adapt for a while until you can afford the upgrades you desire.
You could also find that you are stuck without a home for a while. If you sold your existing home and there was a delay in the building of your new home, you may have to find temporary housing somewhere. This means paying for storage for your belongings and dealing with the hassle of moving more than once in a short amount of time.
One of the largest drawbacks of building a new home, however, is the unpredictability of the situation. You have no way to predict how much the entire process will cost. You can’t predict what might happen or how much prices might increase on supplies during the six months it takes to build the home. It’s also very easy to get carried away with the add-ons and upgrades. Before you know it, you could be way over budget and in over your head.
Buying an existing house may help you stay more level-headed. While you may need to make renovations, you could do them slowly, as you can afford them.
Whether building a new house or buying an existing is right for you is a personal decision. Your finances and your personality will help decide what is right. If you are the type that needs everything perfect and continually makes changes, building your own house could get costly. If on the other hand, you can stick to a budget and a plan, you may make out better starting from scratch and getting what you want.