Buy or Build

The home building vs home buying discussion has been around a long time. There are pros and cons to each, some of which you may not have considered. It’s a big decision, and there’s a lot to think about, but in the end it comes down to what suits you and your particular situation.

HOME BUYING

PROS

Buying an existing home saves time. You don’t have to wait for a house to be built. If you’re dealing with time constraints, such as a job transfer or school starting soon, this is a plus. Depending on the market in which you look, it may also be cheaper to buy an existing home. You can know ahead of time what the property taxes are, and have an estimate of utility costs for that home.

A home inspection before buying is a must. If the inspection reveals repairs are needed, the offer may stipulate who pays for what, and may even give the potential buyer to back out of the offer if major issues are discovered, such as a crumbling foundation. Depending on how motivated the seller is, he may well fix a major issue or agree to a lower selling price in order to avoid losing a sale. Laws on who fixes what vary from state to state, and your real estate agent will be knowledgeable on those.

Landscaping will already be in place, so you won’t have to worry about putting in a lawn right away.

CONS OF HOME BUYING

You may fall in love with a home, but not the neighborhood, the size of the lot, taxes, or cost of insurance and other such things.

The layout of the home may prove to be inconvenient once you start living there. It can be something as little as not enough electrical outlets in various rooms to larger things such as finding out that there is much more travel up and down stairs than you expected, or the electrical outlets in a room or two are just in the wrong place for your furniture.

The home will probably have been built with then-current trends in mind. Perhaps the necessity of a second bathroom hadn’t yet caught on when the home was built, or narrow, galley kitchens were the trend. That trendy paint color that you used to see everywhere fifteen years ago now seems just tasteless. Those popcorn ceilings turn out to be a nightmare to keep clean.

You may have a lot of small repairs that were just too insignificant to have been dealt with during the buying process. The costs of repairing a cracked window, small holes in the wall, that closet door that’s about to come off the hinges, or the back door that just won’t latch properly so the deadbolt lock engages add up, even when doing the repairs yourself.

The existing appliances may suffer as far as energy efficiency compared to newer models. Likewise, improvements in mandated building standards may mean that some building materials in an existing home lack the quality of modern materials.

You may have an unpleasant surprise or two, even with a home inspection. Some home systems, such as the electrical system, may check out at inspection but may have a problem with what you plug in where. The air conditioning system that checked out may suddenly wheeze its last after only a few weeks of use. Even the best inspectors can’t predict just when a system or appliance will fail.

With landscaping already in place, there are plants you may not want and trees in places that are just inconvenient as far as what you envision for your yard. Bushes may have been planted too close to the home without future growth in mind, and now they not only cover up windows but are pushing against the shingles. The one flower that you are highly allergic to seems to be planted all over. That big tree that hangs partly over the neighbor’s yard may have been a bone of contention between him and the previous owner, unbeknownst to you.

HOME BUILDING

PROS

You get to choose the builder, so you can check out references and perhaps even see samples of his work in the neighborhood. You’ll know what you’re getting.

You’ve already scoped out the various neighborhoods and schools and have picked out a lot in a place that will suit you and your family.

Customization – you can build the design that will best suit your needs. From the size of the bathrooms to the kitchen layout to traffic flow to work spaces, it’s all just what you want. You can get that open space you crave, you can make sure you have enough light coming into the rooms, you’ll have the colors you like, and you can have that island in the kitchen you always wanted. You’ll also be able to design the landscape to your taste. You know exactly what you’re getting – no unpleasant surprises.

Your home will be equipped with the latest in energy efficiency, from appliances to insulation, and will also adhere to applicable state regulations without remodeling.

Construction will be done with the most modern materials and equipment. You’ll be assured of the quality of the home, as newer building codes mandate a higher standard.

Professional builders provide a warranty for new homes, which provides peace of mind.

You can landscape the yard as you see fit. You’ll have the flowers and bushes you like, where you like them, and all the space you desire.

A newer home will result in better resale value when the time comes.

CONS

It may take longer to build a new home than to buy, unless the local real estate market has few homes for sale.

Building a home may cost more in the beginning.

Construction contracts can be confusing, and the average person can really be at a disadvantage trying to understand what they actually say regarding payments, liens, schedules, what permits are required and specifics about what’s actually included in the build. A real estate lawyer should be consulted before signing anything.

TO SUM IT ALL UP

Consider carefully the pros and cons of buying a home vs building a home. In either case, a good real estate agent can help you with either home or lot buying, and can save you a lot of time navigating the process. You may even find that you change your mind during the process. For instance, you may find that there are few existing homes available in suitable neighborhoods, and decide that building would be a better fit for your family. Whichever way you go, make sure to consult qualified professionals and your next steps will go much more smoothly.