For most individuals, buying a home will be the largest single investment they make. The majority of home buyers have already begun to design their ideal home in their minds even before officially shopping around. Preferences range from floor plans and house style to what side of a particular town or city they would like to call home. Most families shopping for a new home also weigh the option of buying an existing home or building an entirely new home. In this piece, we’re going to weigh some of the pros and cons of buying an existing house versus building an entirely new home.
Purchasing an Existing House
As a person or family establishes what kind of budget they have to work with based on what style of mortgage they choose (fixed vs adjustable rate or 30-year or 15-year), they can begin to weigh their options. Most people who will lean in the direction of purchasing an existing home will do so for two reasons — convenience and price. Matters of convenience can range from being able to immediately have the keys to an existing house as well as being able to choose more specifically what established neighborhood in which to live. The convenience of price means savings for a home that may be older or may require additional maintenance. Some of the negative aspects of buying an existing house range from a lack of customization to maintenance issues that come with an older and possible improperly maintained property. Still, choosing a house with its own history and character can be a major selling factor for many looking for a new place to put down roots.
Building a New Home
Many shopping for a new home may ask, “Why would I build a new house with there are literally thousands of existing homes to choose from?” This is a good question. It’s true that new home construction is most likely to occur in a new neighborhood and the house itself may lack some of the history that some home shoppers seek. Also, due to their age, existing homes may be somewhat less costly than new home builds. On the other hand, a new home build allows the homeowner to design a home precisely to their own specifications. Floor plans, room dimensions, and even individual fixtures are completely up to the buyer when it comes to new home construction. For those who desire to live in historic neighborhoods, there are frequently ways to build on open lots when coordinating with the local homeowner’s association or a historical society. The process of building a new home has also been greatly simplified by using subcontractors who can manage every stage of the building process.