If you’re in the market for a new home, you’ve probably thought about whether you should build a new home or buy an existing home. Each scenario has its pros and cons, and it’s worth taking the time to explore the options before you make a decision and sign on the dotted line.
Existing Home Pros and Cons
Buying an existing home can be a good thing. Buying an existing home is almost always less expensive than building a new home. In addition, when you buy an existing home there is no waiting for construction delays. You can move in when you buy the house, and you don’t have to worry about a contractor getting things done in time. In addition, by buying an existing home you can save time and money on things like landscaping. In the current economic climate, with foreclosures at record high rates, you may even be able to find a real bargain on an existing home.
Still, buying an existing home has its downsides. You have to deal with the damage that time and the previous occupants have left on the home. While you can include certain repairs as part of the purchase agreement, or make purchase contingent upon those repairs, there will inevitably be things that go wrong after the sale. You are also limited as to the layout of the home and the yard, of course. Buying an existing home also means you may have to pay more in utility costs, as older homes tend to be less energy efficient than new homes.
Building a New Home Pros and Cons
There are some specific benefits to building a new home, too. The most obvious benefit, if you can afford it, is that you can design the entire layout of your new home from scratch. Of course, most people who build a new home are limited to a specific set of designs, so that may not be an option for your situation. You can also plan the building strategy using the specific types of building materials you want. You can also build your new home using more energy efficient techniques, which may save you money on utilities when compared to buying an existing home. You’ll also save money on home repairs, at least in the first few years, because the workmanship of your new home will be under warranty.
On the other hand, if you build a new home you usually have to purchase the land up front. This, of course, also allows you to choose the specific location that you want, so this isn’t always a bad thing. You also take something of a risk when you build a new home. You take the risk that some of the work may wind up not being up to par. While you do have a warranty and legal recourse in place, you don’t want to have to fight with your contractor or construction company to get them to fix defects that you didn’t anticipate, and you have to live with those defects while you wait.
