Written By: Dan Brown
A home is one of the single largest investments that a person will make in their lifetime, so it’s understandable to want to find a home you feel confident about. The best place to start is by deciding if you want to buy an existing home or build a new one. While building a home may seem like an attractive opportunity, you shouldn’t overlook many advantages of buying an existing home. Below we outline some of the pros and cons of each option. It’s worth considering both options before moving forward with one direction in mind.
Buying an Existing Home:
If you’re in a hurry to move, buying an existing home is usually the more convenient option. After you’re pre-approved by a lender, you can start researching potential locations, visiting homes, and ultimately make an offer on the best home for your situation. While this process can sometimes get lengthy, an experienced real estate professional can help you find properties that fit your requirements, and they may also use their expertise to speed up the closing process. When you build a home, you are committed to the construction timeline – which typically takes 6-12 months.
The National Association of Home Builders states that in many cases, buying an existing home is the more affordable option. Even after the expense associated with making upgrades to the home, an existing home is more likely to come in under budget compared to building a new home. When you’re looking at homes, consider what changes you’d need to make and factor that into your total price before making any decisions.
Building a New Home
When purchasing an existing home, it’s more likely that you’ll have to compromise on your wish list. One of the main advantages of building a new home is the ability to work with your contractor to customize it to meet your wants and needs. While you can certainly personalize an existing home, you will not have the opportunity to create something that is entirely yours. Building a house can lead to a level of satisfaction that you can’t fully achieve through buying an existing home.
Although the cost of building a home is typically higher, the money you invest is likely to pay off in the future. Today’s energy efficient technology, insulation, and windows will all translate into lower utility bills far into your home’s future. In addition, because your home is new, it will likely require less maintenance in the near future. If you decide to move, a newer home is typically more appealing to most buyers, requiring fewer repairs and less maintenance.
If you’re trying to decide where to start in your home-buying process, The Kelly Team at Envoy Mortgage is here to help! Contact us to learn more about our loan options and benefit from our vast network of contacts as you navigate your options.