Should I Build or Buy My Next Home?
Congratulations! You’ve decided to invest in a home. For the discerning consumer, there’s a lot of options out there. New developments, new neighborhoods, old neighborhoods, vacant lots, un-vacant lots—the truth is, there’s a lot of decisions to make.
But, after you’ve picked where you want to live, you have another tough choice to make: do I build or buy? Unfortunately, there’s a lot of myths surrounding both, but we have your guide to making the decision as easy as possible, and hopefully, by the end of this post, you’ll have a good idea of what you want.
First up, buying an existing home:
Buying a home
Pros: Purchasing a home that’s already been built (and potentially lived in) has plenty of perks. It’s generally accepted that building a home is going to cost more on average. Estimates run from $60,000+. Also, depending on the neighborhood the home is in, an already constructed home might run larger for a better price too. As a general rule, buying a home is often going to be cheaper than DIYing it.
Cons: Even with what we just said, one of the most common mistakes first-time home buyers make is not accounting for potential maintenance or remodeling costs. Sure, purchasing a new home is going to be a little cheaper than building it yourself, but if you plan to remodel the kitchen, bathrooms, and bedrooms, that’s going to get pretty pricey pretty quickly. And, that’s not even accounting for yard work! Make sure that the deal you’re getting isn’t too much of a fixer-upper.
Pro: It’s much easier to track the relative development of a giving housing market when a home exists in a community that’s been around a while. Making the right financial decision becomes a lot easier with decades of information about a home’s value and the surrounding property’s value.
Con: Not many here, but predicting the rise and fall of housing prices can be a difficult task. Best to see an expert.
Pro: The great thing about buying an existing home is that more than likely, there are established features and landscaping marvels already in place. Who doesn’t want a home with a big old tree in the back, perfect for a tire swing?
Con: The same thing as the pro. Buying an existing home means that you’re likely stuck with much of the landscaping the previous owner did unless you’re willing to invest in some serious (and often costly) upgrades.
Pro/Con: This can be a tough one, as what you see in terms of appliances, architectural choices, and energy efficiency is often what you get.
Building your own home
Pro: When you build your own home, you get to control the costs (to a degree). Because you’re serving as designer and chief financier, you get to decide if adding several more square feet is worth it or not. Once you’ve passed the baseline, the costs become more flexible. Talk to a licensed construction company to find out if this is makes sense for you financially.
Con: Like we said above, building your own home costs more than buying a home, but that’s no reason not to do it, especially if you have a unique vision.
Pro/Con: Building your own home can be a gamble, especially when it comes to following trends. Some things might pay off big down the line, and other things may not. It’s important to Consult an expert about the long-term value of certain investments before making them. That being said, hopefully, you’re going to want to live in your home for a long time.
Pro: You get to make the landscaping choices, from planting trees to deciding where to place lawn features.
Con: Unfortunately, building your own home means that things like large trees and other staple landscaping devices aren’t available to you, unless you’re will to pay a very high premium.
Pro: This is one of the areas where DIYing it outstrips buying. New construction technology and energy efficient advantages allow for you to create a home with a smaller carbon footprint. The availability of new energy-efficient options can also do a lot for you in the long run when it comes to power bills. New construction materials and processes also allow for more square footage at lower prices too.
Con: Not really that many in this sector.
Ultimately, the decision to build or buy a home comes down to you, and your choices about the type of home you want to build, buy, and live in. At Intempus, we give you the tools to succeed, whether that’s finding a new home to purchase, or building your own. Find out more on our website, and we hope to talk to you soon!