Buying a Resale Home vs. Building a New Home
There are several pros and cons that come with buying an existing home and with building a new home. This is often a big decision for those shopping for a new home as they may prefer something specific drawing them to one or the other. If you are trying to decide between buying an existing home or building a new home, it may help to look at the pros and cons of both.
Pros of Buying an Existing Home
Buying an existing home means that it has been lived in before. Sometimes, this home could be just a couple of years old. A few pros for buying an existing home include:
Faster closing and move in – Compared to waiting for your home to be built, you will be able to buy and move into an existing home in about 30 to 60 days.
Better Overall Value – An existing home has already established value, and you will be paying a price based on value, not based on the construction costs of the home.
Established Neighborhood – Most existing homes are found in neighborhoods that are well established.
Potential for Charm – You cannot build a historic home, and some features found in homes from previous decades are not found in new homes today.
There are several other pros to buying an existing home, but these are the main ones.
Cons of Buying an Existing Home
Of course, nothing is perfect and you will find some cons to buying an existing home, such as:
No options – You cannot customize the home to fit your needs.
Renovations/Upgrades – You may need to pay for renovations or upgrades.
Used – It has been lived in before.
While there are not many cons and some may be mitigated based on the home you choose, there are a few cons to buying an existing home.
Pros of Building a New Home
Just like with buying an existing home, building a new home will have its own set of pros and cons. Some of the pros of building a new home include:
Fully Customizable – The only limit to customizing your home will be your budget. You can set it up to be the way you want without any concessions.
It is Brand New – You will be the first and only person to live in the home, which can be a big pro for many people.
More Efficient – Compared to an older home that has not been upgraded, a new construction home will be more efficient.
Warranties – New homes come with warranties making home maintenance much easier and less of a worry for the first few years.
No Worries of Health Hazards – Older homes may have asbestos, moisture issues, mold or even radon. New homes will not come with any of these worries.
Building a new home can have plenty of benefits and these are the main ones.
Cons of Building a New Home
There are some cons to consider if you are thinking about building, however. Some of the main cons of building a new home include:
Appreciation – Resale value may not be so high, and it may take years to gain the appreciation necessary to make it worth the investment.
Closing Costs – Upfront costs will be much higher compared to buying an existing home.
Delivery Date – It will take longer to build a home than to close and move into an existing home with the average build time taking 120 to 150 days or longer.
Predictability – You may encounter unexpected costs along the way.
Noise – You may be living in a construction zone until the neighborhood is fully developed.
There is plenty to think about when comparing the option of buying an existing home to building a new home. Regardless of your decision, it is best to hire YOUR OWN real estate agent to help you throughout the entire process, even when building a new home.