When searching for a home, it can be difficult to find one that has everything you want and need, especially when you have a specific location, budget, and unique wish list in mind. It may be tempting to just start from scratch and build your own home with everything you could ever want in a living space. You will need to weigh the pros and cons of building from the ground up or buying a home with potential.
What to Consider
There are several factors to consider before deciding whether building a home is a better option for you than buying one. Building a home can be an adventure. With any adventure, you’ll experience your fair share of ups and downs throughout the process. Conversely, when you buy a home, you most likely won’t get everything on your wish list.
Weighing all information is key to selecting the best option for you, your family, and your wallet.
1. Lifestyle
Every potential homeowner must consider how they live their life. Hobbies, activities, habits, and future family plans all have a part in planning your future home. If you’re building a home, poor design mistakes will be made if these are not addressed.
The biggest advantage of building a home is that you can get exactly what you want as long as it fits in your price range. You can customize the home by creating the layout, choosing the flooring, picking the colors, and customizing features to meet your needs.
When buying an existing house, you’ll need to compromise on your list of wants and needs. You can make upgrades while you live in the home when you have time and money to make them. It often boils down to what you’re willing to give up and whether you can afford after-purchase expenses. Understanding your lifestyle and habits well in advance will make the planning and decision process that much easier.
2. Budget
What can you afford? The state of your financial situation is key to knowing if you can afford to buy or build a home. There are indicators that lenders use to approve home loans.
It’s up to you if you want to get pre-approved from a bank first or talk with a builder first. If you decide to build, a reputable builder will have relationships with many different banks that can help you with your needs. When buying an existing home, you may be able to negotiate a lower sale price.
3. Location
The location and community you live in will have a great impact on your life. This is where you’re going to raise your family, send your children to school, and make your trips to local stores. Think long-term when deciding where to build or buy a home. If you enjoy going for walks or need a park nearby to take the kids to, is the location you’re considering conducive to those goals?
If building a home is your choice, one advantage is that there is no competition among other home buyers. Also, consider all the local building codes and restrictions in the location you’re thinking about building. If you choose to buy a home, there may be housing market competition, especially if you’re looking in a sought-after neighborhood or buying a home in a seller’s market.
4. Choosing a Builder
Finding a builder that fits your wants and needs might take some time. You should pick a company that shares the same design aesthetics as you. Always check their references, client testimonials, and past work before you actually sign a contract or start the building process.
When you buy a home, you won’t have to deal with the stress of purchasing land, working with a builder, making design decisions, and doing everything while staying within your budget. You may be able to move in sooner since it takes less time to purchase and close on a home than to build one.
5. Maintenance
As you decide whether to buy or build a home, remember that new builds will often cost you less in upkeep. Many appliances and systems will be under warranty for at least a decade. Also, new homes won’t be made with toxic materials like asbestos or lead paint, as may be the case with older homes.
With buying a home, you never know what you might run into. Older appliances, pipes, and electrical systems may require more maintenance or replacement.