To build or to buy that is the question…
So you know you want a new house, but you can’t make up your mind about building new vs buying an existing home. While there isn’t a definitively wrong answer, it is important to review the advantages and disadvantages of each option before making your decision. We’ve put together a list of pros and cons for both buying existing and building a new home to help you take the next step.
Buying an Existing Home
There are many reasons why buying a home makes the most sense for a family, couple, or single person. Whether it’s a brand new home or a historic home, taking the step into owning your abode is a great investment and makes you feel good. There’s no better feeling of living in a place that’s yours and paying off your mortgage instead of expensive monthly rent payments. Let’s look at some of the pros and cons of buying an existing home.
- Cost: Once approved for financing, you’ll know your budget and be able to streamline the process and purchase a house within your budget. All the numbers are out on the table and once a purchase price is agreed it’s much easier to plan financially for the acquisition of your new home.
- Convenience: When you purchase an existing home, chances are you’ll be able to move in within a month or two. While finding the perfect house might take some time depending on where and what you are looking for, once you’ve had an offer accepted it won’t be long until you are settled in.
- Landscaping: While this really depends on the previous owner, there’s a good chance that some landscaping might already be established around your home. This saves you time, money, and effort in trying to make the outside areas of your house look good.
- Not Perfect: Unfortunately, unless you get seriously lucky you might not get exactly what you want if you purchase an existing house. Perhaps it’s an open kitchen with an island in the middle or that bay window you always dreamed of. Buyers of existing homes often have to make some sacrifices.
- Remodeling Costs: This really depends on the state of your home when you purchase it, but odds are at some point in time you might be interested in making some changes. Big or small, a new home buyer should be aware of and take into consideration the cost of doing some remodeling in the future.
- Underlying Issues: Again, this depends on how old and well-maintained your home has been, but there’s a chance there could be some existing issues that might need to be addressed in the future. Whether its plumbing or cracks in the foundation, buying a home often comes with unforeseen problems later down the line.
Building a New Home
- Design Flexibility: When building a house you can build it exactly to your liking. The layout, materials, color, etc… You are in charge of it every aspect of the home and can make sure it’s exactly what you are looking for.
- Adjustable Cost: When you build a home you can select the price range that fits your budget. You decide if you’d like high-end flooring or a more elaborate kitchen. It’s your budget and your decisions.
- Understanding: When you build a house, you know the age of all features and appliances, the quality of the building and materials, the architecture, etc… Having this information will allow you to better diagnose future issues and maintain the house to the best of your ability.
- Higher Resale Price: If you are the first person to live in the home it will have less wear and tear. This means a higher profit of your real estate investment in the future.
- Longer Timeframe: Building a new house can take anywhere from a few months to years if you aren’t mindful. When building a home, be sure to go with a reputable builder who is professional and known for staying on track.
- Upfront Cost: To build a new home it requires a large initial investment and upfront cost. It’s not uncommon for special financing in this situation.
- Over-Budget Risk: When you buy a home you know the cost. When you build, you risk the possibility of going over budget if you’re not careful. Being mindful and working with reputable builders and developers is the best way to prevent this from happening.
There are many pros and cons to consider in building new vs buying an existing home. Before you move forward with the process it is important to do your research and figure out which one is the best option for you.
Looking to Buy or Build a Home in the Colorado Mountains?
Whether you’re looking to buy or build new or buy an existing home, the Grand Park Community has a place for you. We are professional, timely, and efficient and can help you through the designing, building, and/or buying process. Contact us today for more information.