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Carol Shear's Blog

By Carol Shear | Agent in Columbus, OH

Should You Build A New Home Or Buy An Existing One?

The impact that buying (or building) a home will have on you is one that cannot be overstated. It will affect every aspect of your life, especially your finances. So all of the decisions that go into the home buying process should be carefully thought out. The first decision that you will have to make is one that will affect every other decision in the home buying process and is one that many buyers struggle with, namely, should I build a new home or buy an existing one? An article from U.S. News sheds some light on the dilemma, saying that, “While the decision to build from scratch gives buyers a number of benefits, the prices of homes already built provide a clear incentive to purchase an existing home.” Here we will reiterate some of the advantages and disadvantages associated with both methods.

Buying-or-Building

Building:

  • Pros

    • Homes built by the buyer can be customized to fit their specific needs and wants

    • Homes built today have the most up-to-date technology and building materials, which means that they are more energy-efficient than older homes. This can be a big money saver for homeowners.

  • Cons

    • There are various costs associated with building a home including, but not limited to, cost of the lot, cost to hire an architect and builder, cost of construction work and materials, and cost of setting up utilities.

    • New homes typically take at least a few months to build, so the buyer must find a temporary place to live while construction is being done.

    • Initial estimates for the cost of construction are usually too low and will go up as the process continues

    • When building a home, you are responsible for furnishing it with new appliances

    • There are many opportunities for things to go wrong during the building process

Buying:

  • Pros

    • Typically, the buyer can move into the home immediately after purchasing it

    • Buyers can find big discounts in the existing housing market

    • According to the National Association of Realtors, “the case against buying an existing home is very thin...buying an existing home is the best financial choice”.

    • Existing homes already have appliances, and any needed upgrades can often be negotiated during the bidding process.

    • Buying is a much less stressful process than building

    • Existing homes are established parts of their respective communities and neighborhoods

    • Issues with existing homes have often already shown themselves and have been resolved before you move in

  • Cons

    • Houses in developments are often of similar styles and don’t allow for much customization.

If finances are your number one concern, then it is in your best interest to buy an existing house. However, if you are more concerned with having a home that is original, unique, and custom, and you aren't overly worried about costs, then get to building!

To read the original article from U.S. News, click here.

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