People usually have different priorities when it comes to what they want in a home. Since one size does not fit all, the factors in play when deciding whether to build or buy a house vary depending on buyer objectives. Homebuyers should keep these homeownership factors in mind along with investment goals, employment situation, family size and personal preferences and the fact that they will have to live in the home.
Building vs. Buying a Home
Since determining whether new construction is better than an existing home depends on the homebuyer’s priorities, here’s a few factors that should be considered:
Which is cheaper?
Several aspects come into play when determining if it’s cheaper for you to build or buy a house. For one, the estimates that contractors provide are rarely accurate; the cost of new construction can skyrocket quickly and unexpectedly. Along with the cost of construction, there is the cost of the land on which the house is to be built. Both costs combined can make new homes far more expensive than existing ones. Those considering building must also remember that along with the cost of construction, they will also have to factor in things like landscaping and new appliances. Newer buildings are often more energy efficient, however, so that a homeowner may recoup some of the home’s cost over a long period. When considering if it is it cheaper to build or buy a house, the answer for most is likely “buy”.
Where do you want to live?
The location of a home has a lot to do with its value and therefore should be considered when deciding whether to build or buy a house. New developments are typically off the beaten path and may involve lengthy commutes for homeowners. Lot sizes in these developments are often small as well, which means that homeowners will have to be okay with living close to their neighbors.
Since existing homes are typically in established neighborhoods, it is easier for a prospective homebuyer to get a feel for the neighborhood’s character before making the purchase. In a new development, the neighborhood’s character is an unknown factor.
How much time do you have?
Whether they choose to buy or build a house, most homeowners will have to wait to move in. Numerous factors can affect the length of the home building process, these factors range from the time it takes to get the necessary permits to the weather. Countless things can go wrong and cause delays so that it may be several months from the start of construction to the day when the homeowner can take up residence. The length of time between purchasing an existing home and moving in is typically shorter, but it can take months or even years to find the home that meets all of the buyer’s needs.
How perfect is your perfect home?
Personalization is a big part of the decision of buying vs. building a home. By building a home, the homeowner can ensure that it is customized for all of their needs; even in developments where homes are all built according to a specific style, homebuyers will still have some say in certain aspects of the design. It should be noted, however, that a high level of customization might make a home difficult to resell later on.
Pre-built homes that have not been designed to suit a particular individual may be more appealing to buyers. And if there’s something the buyer doesn’t like about their new home, they can always elect to make a few renovations later.
The decision of building vs. buying a home is an old, sometimes difficult one to resolve. The important thing is that the prospective homeowner ponders their objectives and spends some time looking for the perfect home that meets their financial, personal and professional circumstances . If that isn’t around then maybe they can consider creating it for themselves.