With interest rates the lowest they have been in years, many buyers who have been on the fence about whether or not to purchase a home are deciding the time isn’t going to get much better than it is now. But one of the first decisions a prospective buyer should make is whether they are going to purchase a pre-existing home or build one from scratch. This decision will affect how the rest of their search should progress. What we are going to do is list some of the benefits of each in order to help you make a more educated decision.
One primary advantage to building your home is that it can be built to your specifications. These types of homes are referred to as custom homes and can be designed with the needs and wants of the buyer in mind. Building your own home will also ensure that all of the building supplies and accessories are the most current available. A custom built home will also tend to be more energy efficient than older homes which will help ensure that your electric bills remain low. With all of these benefits there are some drawbacks to building your new home as well. In addition to paying for the construction costs associated with building your dream home, buyers are also responsible for the purchase of the land that the house will be built on. This requirement can add significant costs and fees to building your own home.
In addition to the added expense of purchasing land, buyers who choose to go this route will also have to cover construction costs which can be rather high. Because many builders have taken a hit because of the downturn in the housing market, many are choosing to offer discounts in order to get your business. But construction costs have a tendency to go up and whatever discounts you may have received in the beginning may be of no consequence once the project is completed.
Some benefits associated with choosing a pre-existing home include the fact that it is already done. You will not have to wait for construction to be completed, all you have to do is pick up the keys at closing and move in. Sales of new homes have reached record lows in recent years primarily due to the high costs associated with buying a brand new home. Buying an existing home is also less stressful than having one built and there are less economic risks involved when purchasing a home. Existing homes are also part of an established community and neighborhood providing you with valuable insight into the type of people who live in the area.
Whether you decide to build your dream house or purchase an existing home that includes many of the features you were looking for; it is important that you consider all of the pros and cons associated with both endeavors.