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    Buying vs Building a House – Advantages and Disadvantages of Both

    January 15, 2018


    Buying vs Building a House – Advantages and Disadvantages of BothIf you are ready to buy your first home, you have two choices. You can buy a house that is pre-existing and that someone else is selling, or you can have a brand new house built.

    Since the prices of new homes have gone up, you may think that you want to buy a home that is already built. However, there are many advantages to buying one and having it built.

    Below we will look at both options and their advantages and disadvantages so that you get a better idea of which one will be better for you.

    Having a House Built

    Advantages

    There are many opportunities for saving money and benefits of having your house build even though you don’t have the know-how for building it yourself.

    Here are some of the advantages you’ll find to having a house built.

    • Material discounts – If you are working with supplies, such as a local lumberyard, ask if you can the builder’s discount. There are some suppliers who are going to offer discounts that are higher when you buy more. On things like millwork and lumber, discounts will be around 10%. For the lighting fixtures, the savings will be higher.
    • Everything is Brand New – When you move into an already existing property, there can be hidden costs that you may have to fix and that you may not know about when you are buying it. But when you have a house built, you shouldn’t have to deal with any unpleasant surprises.
    • Yearly Savings – If you have a new AC unit, you’ll be able to save several hundred dollars each year by not having a service plan that usually be needed for older systems. If you’re purchasing a previously owned home, you’ll pay anywhere from $3,600 to $7,200 for a new unit.
    • Design control – Everything is going to be the way you want right from the beginning. Therefore you won’t have to deal with redoing your home once you have bought it. For example, if you have to remodel the bathroom, it can cost $18,000 to have your full bathroom remodeled.
    • Easier Entertaining – It’s going to be easier to entertain since the newer homes usually have open floor plans which will support large groups. The older buildings will often have design choices without much sense to them.

    Disadvantages

    Even with the advantages of having a home built, you are also going to find some disadvantages. When you’re running into delays such as permits, there can be many unexpected costs that you will run into. Below are some of the disadvantages you’ll find with having a house built.

    • Time – When building a home, it can take from 4 to 6 months before it’s done. This is a really long time for you to wait and there are things that can change during this waiting period.
    • Limitations – There could be style limitations based on the budget that you have. It’s also possible you’ll find that buying upgrades and making lots of changes gets to be pricy.
    • Permits and Construction Loan – It may be that you’ll need to carry that construction loan if your builder isn’t doing it. Even if your builder is handling your permits, you want to understand what you are going to need so that you know everything is built to code. If you aren’t sure, you want to hire an inspector on your home so your job is done right initially.
    • Legal considerations – That agreement between the builder and you could limit the rights that you have if there is any issue with the process of building your home and you’ll have to take your builder and sue them. Carefully read your documents and speak with a lawyer in the state for some legal advice if you need to.
    • Temporary housing – It’s possible you’re going to get some temporary housing while you’re waiting for the house to be complete. When you do this it could mean there are more expenses from paying for a rental space and hiring movers.

    Buying an Existing Home

    This can be a good option for a lot of people because for the most part you’re able to move in not long after closing. A lot of times a home buyer could fret over the home’s purchase with features that aren’t the best. But you don’t have to buy a home that is perfect. It’s possible to update the home’s unattractive features as time goes by.

    Advantages

    • You can Flip the House – If you purchase a house and you’ve made upgrades that are much-needed, it’s possible to flip your house and make profit on the things that have done.
    • You can Delay Upgrade Costs – With a home that’s pre-existing, it’s possible to take your time to make your upgrades so that you can budget better for those expenses.
    • You can Move Quickly – For the most part, it’s possible to immediately move in once you close. There’s no wait time and no need for temporary housing.
    • The Neighborhood is Familiar – If you are purchasing a house in a neighborhood that is established, you know your neighbors already, along with things like the property values.
    • Visualization is Simple – You’re able to see the pre-existing home’s layout and floor plan. When you are building a home, it’s often hard to visualize your layout and make sure that the home is buildable and affordable.

    Disadvantages

    Along with the advantages there are also disadvantages when you buy a house that is pre-existing. Some of the disadvantages are listed below:

    • Buyer’s remorse – You’re going to find quirks in the home that you didn’t know about when you were looking at it that you’ll have to wrap your mind around.
    • Upgrade costs – When you move into a home that is already built, it’s going to be a huge investment of money and time to make the upgrades you want. Even simple home remodeling can cost a lot. For instance, a huge kitchen remodel costs over $100,000.
    • Layout is Hard to Change – When you buy a home that is already built, changing its layout or floor plan is very hard.
    • Decorating Costs – Along with paying upfront costs such as closing costs, it’s possible you’ll have to invest money and time to bring it to the current standards. You might have to remove wall paper, update the flooring or change the paint colors. Repainting alone can cost anywhere from $938 – $2,500.
    • Higher Rates of Home Owner’s Insurance – Compared with the costs that you’ll to pay with a new home, you’re going to pay more when you’re insuring a pre-existing house since new homes have features that are up-to-date and new.

    As you can see, there are advantages and disadvantages both to buying a house and having one built for you. You have to decide which is best for you and for your family’s needs. Then make the decision based on that.

    Buying a Home in Port Charlotte?

    CENTURY 21 Aztec & Associates provides comprehensive real estate services including land, acreage, commercial property, new construction, sailboat waterfront homes and motor boat waterfront homes with access to Charlotte Harbor and the Gulf of Mexico.

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