Should you buy or build a home, and which is right for you? There are a number of factors to consider which will help you determine whether you should buy or build a home. A home is often the single largest investment a person will make. Many buyers end up spending a lot of time and energy either searching for or designing a home before signing any contracts. Many considerations such as location, price, trends, property taxes, HOA fees and the condition of the property are pivotal in the house hunt. Buyers generally have a wish list that includes specific needs and wants. And while the home-buying process involves a number of important decisions, one of the very first decisions buyers need to make is whether to shop for an existing home or build a new one. There are distinct advantages and disadvantages with both paths. Here’s quick look at both options.
Buy or Build A Home – Building a home may be your best option if,
1. You want a home that meets your precise list of wants and needs. For many, this factor alone is enough to choose building over buying. Home buyers often end up settling on at least a few items on their checklist of home qualities, as finding the perfect existing home can be extremely difficult. Building a home means starting from a fresh slate, you determine exactly what’s important when you build a new home.
2. Lower operating costs or green-friendly solutions are important to you. A new home is more efficient, especially with the new energy codes, including better HVAC (heating, ventilation and cooling), insulation and air filtration standards. Better efficiency is good for the environment and will help you save money on your utility bills each month. Green appliances (*Energy Star rated appliances) and more efficient toilets, plumbing fixtures and electrical allow you to build “green” for a more sustainable home in the long run. And you have the option to install, and wire for future technology upgrades, such as home automation (TV/Audio/Alarms) and solar.
3. You’re looking for the healthiest home possible. A new house may literally be better for you. A new home is less likely to have the health concerns of an older home, eliminating concerns and health effects from things such as asbestos, lead paint, mold and more.
4. You want a modern home and design. Homes are like anything else, style comes and goes. From closed off and compartmentalized to open floor plans, to carpet vs. hardwood, to linoleum shower/tub combos vs. free standing tubs with companion glass enclosed tile showers, a lot of home trends change over time. Finding a home that meets your other qualifications, which doesn’t required a substantial renovation budget just to adjust the design to your tastes and modern trends can be difficult. With new home construction you’ll have the opportunity to include a modern, desirable layout and options suited for you right from the start. And if you’re going to invest a substantial amount of money in renovations, why not start from scratch and include everything you want in a home.
5. You own your own land. The no-brainer. If you’ve got land that’s desirable to you for a home location, then why look for a home elsewhere? Take advantage of the benefit and equity you have in your land to build a home right where you want it.
6. You want better resale value. Homes built today are likely to command higher values than existing homes, primarily because improved building standards have led to better-quality housing products. The energy-efficiency standards and local building codes that are in place today far exceed those that were in place in prior years. Builders often exceed local and state building codes for quality control, and most new construction comes with a builder’s warranty in addition to manufacturers’ warranties. You’ve all heard the saying, “things aren’t made like they used to be,” and in the case of new home construction, that’s a good thing.
Buy or Build A Home – Buying an existing home may be your best option if,
1. You’re credit isn’t ideal or you’re unable to get financed for new home construction. While a mortgage loan is generally low-risk for a lender because it’s secured by an asset (typically your primary residence), a construction loan is a loan against something that doesn’t exist yet. You and your builder are incrementally buying the ingredients for a recipe that will ultimately create your finished home. During that time, anything can happen, which could affect your financial position: marital status changes, financial changes, zoning issues, etc. Building a home is a dream come true for home buyers, but for a lender, it means higher risk. When a lender sees higher risk, the first thing they do is mitigate the risk. They do this by increasing down payment requirements, increasing credit score requirements and making sure borrower credit histories are outstanding. While there are more options than ever for construction loans, they’re still typically harder to acquire than mortgage loans.
2. You’re looking for the most convenient or quick way to get a new home. Even though the home buying process involves numerous steps – such as financing, viewing homes, making offers, home inspections and closing – the convenience of being able to move in right away is compelling enough for many people to choose an existing home over a build. This may be especially true for buyers on a tight schedule, such as those relocating for a new job or whose children will be starting at a new school.
3. You want something ready to live in, without the effort and energy required to build a home. There are many good options for homes available in every market. If you don’t have a highly specific list of needs and wants or you’re content to find a home that’s close to perfect, buying a home will no doubt be a quicker and easier process vs. building a home.
And as for the cost, is it more affordable to buy or build a home? Well, there’s no quick answer to this question, and many varying opinions exist in favor of each as a more affordable solution. In many (but not all) cases it is cheaper to buy an existing home according to data compiled by the National Association of Home Builders. However, existing homes are commonly outdated and require renovation or attention to problems. Though buyers will often pay less at the closing table to purchase such a home, the additional renovation and improvement costs can quickly add up — frequently sending the total expenses higher than if they had built a new home.
Whatever your interest, whether it’s to buy or build a home – don’t hesitate to contact Turner Homes today. We’ll offer a clear explanation and analysis of our home constructions process and even provide a free consultation to help determine the costs you should expect to build your home. Contact Turner Homes – Click Here.