Owning your own home is the culmination of all your hard work and the sacrifices you made to have a place where you can raise your kids, live your life, and celebrate a lifetime of memories.
As owning a home is the single largest investment that most people will ever make, so making the right decision is full of with all kinds of worries and stress. The median sale price to build a new home in the US is approximately $322,500 and the median price for an existing home is approximately $235,000. Clearly, there is a fairly large disparity in price.
Similarly, when deciding on whether to buy or build a home, you have to evaluate certain variables like location, price, taxes, homeowner’s association fees, and many other things. There are good enough reasons to consider both options. Each has its own pros and cons and here I will discuss both in a bit detail so that you can have a clear picture and you can make the right decision.
1. Buying an Existing Home
We don’t like complications and especially when it is about having our own home, we want it to be a smooth and easy ride. Though there are many steps involved in buying an existing home like finding a lender, working with a real estate agent, make offers, do inspections, and then close the deal, it is still far more convenient than building a new home. Similarly, when you buy an existing home, you can move in right away and it is a good enough reason for many people to choose an existing home.
When you are deciding on buying or building your new home, cost considerations play a very key role in your final decision. According to the National Association for Home Builders, it is substantially cheaper for you to buy an existing home. Arranging finance for your new home is a big task and people spend their whole lives in saving money for their homes. So, buying an existing home saves you from many worries and headaches.
Location and Neighborhood
Everybody has concerns about their neighbors. You want to live in a place which is peaceful and calm. Secondly, you want to live in a place that is close to your work, family and friends, school, and if that’s what you are looking for, there might be limited options to build a home in that area. Buying an existing home gives you the liberty to look for the right neighbors and appropriate locations.
You can See Before You Buy
An existing home gives you the opportunity to see the different styles in practice and then decide which suits you the best. You can see the floor plan, layout, kitchen, bathroom, and many other aspects of your home. However, when you build a home, it is very difficult to visualize the outcome until it is finished and many people don’t get the desired results.
Every person has his own imaginations and dreams about his home where he wants to live and spends his life. The biggest disadvantage of buying an existing home is that you may not exactly get what you want. The floor plan might be different, or you wish to have a big stylish bathroom or a different bedroom, or there can be many things. Even if you find an existing home that has everything you want, you will have to spend additional money on repairs, remodeling, and decorations which will increase the overall price of your home.
2. Building a New Home
Building your own home can lead to a level of satisfaction that is far off from buying an existing home. When you get intimately involved in the style, design, and build of your home, it brings a deeper emotional connection to the structure. Your home becomes a place that fully reflects your individual style and personality.
You Can Have What You Want
Building a new home is quite different from buying an existing home. You will have to acquire land, hire an architect and professional contractors of home building, acquire permits and approvals, and review every element of the structure. For some people, these concerns are nothing in comparison with the excitement and satisfaction for having exactly what you want for your home.
You can Incorporate Modern Trends
When you are building your own home you can have included the modern technologies and latest trends that will make your home more energy efficient, eco-friendly, and of course more healthy. Similarly, the new home will require fewer repairs and maintenance.
There are some certain disadvantages when you are building your own home. One biggest drawback is it will take a lot of time, almost six months and that’s too much time to wait. Another problem is with the building a new home is you will be limited in the style of your home due to your finances. You will have to move to an alternate place to stay during the construction. It will add to the expense of building your home. Similarly, you will definitely require more money to build a home than to buy an existing home.
3. Buying Vs. Building ? What’s the Best Choice?
Buying an existing home or building your own home, both have a different set of advantages and disadvantages. However, if you want to have a house that meets your every desire and you have the cash to back your dreams, building your own home is the ideal thing to do. If you don’t have favorable circumstances, it is better to buy a home in your price range and in the location that is most appealing to you.