Buy an Existing Home or Build a New One

 

If you’re a first time homebuyer who is dreaming about the perfect home, the first question you’ll have to answer for yourself, before you can begin to consider the issues involved in deciding whether to build a new home or buy an existing one, is how much money do you have to spend?

Remember, the price of an existing home includes the price of the land on which it is built.  Building a new home means you first have to have a lot on which to build.  Having said that, few things in life are as appealing as the opportunity to design something that is meant for you and no one else.  There is a difference between building a new home on your own and buying a new home and land package in a new development area somewhere.

So assuming cost is a controllable issue for you, are there any advantages at all to buying an existing home?  When you hire your own contractor you can have exactly the kitchen you want, the number and size of closets you want, and the landscaping you want.  In addition, you get to pick the perfect spot for the house.  Just where are the disadvantages in this picture?

First, existing homes are ready to move into with minimal waiting.  You make your offer; it’s accepted; you agree on a closing date; and you move in; sometimes in as little time as 30 days.

While it certainly takes time to find an existing home that comes close to matching your dream home, compare that to the time involved in building your own.  You’ll first have to find a lot and then an architect to design your home.  Then you’ll have to find the right builder.  Then you wait.

If you’re thinking of building your own home, part of your research should be to talk with others who have been through the process.  While you will certainly find most who are satisfied with the results, you’re also likely to hear war stories of construction delays, cost overruns, materials shortages, labor problems, and a host of other assorted headaches associated with such a major project.

Existing homes have at least one construction advantage over new homes.  They are not going anywhere.  Some new homes can settle; as in, shrink into the ground a little.  This can lead to cracking of walls and other problems associated with settling.  While rare, they are something to consider.  Again, existing homes have already settled as much as they are ever going to settle.

In addition, existing homes can be renovated to suit your tastes.  This not an easy process either, as many of the same construction headaches you might have in a new home construction project will rear their ugly heads in a renovation project of an existing home.  But in general, renovating an existing home will take less time than building a new home.  
Ultimately, the choice comes down to how much you are willing to invest in getting your dream home.  And remember, the investment involves more than money.  If you’re willing to lower your standards a little when it comes to that perfect home, an existing home might be an option to consider.