On the fence about building vs buying a home?
If you’re looking at getting into a new (or new-to-you) home, but aren’t sure whether building a new construction or buying an existing home is right for you, we’ve got you covered. Each option has its pros and cons, and in this blog, we explore the differences.
Read on to compare the benefits of buying a home with those of building a new construction so you can determine which is the best choice for you.
Benefits of Building a New Construction Home
Customization and Design Choices
Perhaps the biggest benefit of building a new construction home is that you can customize your home to your heart’s content. You get to make every design choice — from customizing the layout to choosing the finishing touches.
If you have a dream floor plan in mind or relish the idea of designing your home from the ground up, a new construction could be the way to go.
However, on the flip side…you have to make every decision! Decision fatigue is real, so if the thought of making hundreds of small decisions in a short period of time makes you dizzy, you might be better off buying an existing home.
Everything Is New
Older homes come with higher maintenance costs, and can sometimes have issues that require remediation before moving in, such as mold, lead paint, or foundation problems. They are also more likely to need major systems replaced sooner than later, including the roof, HVAC, electrical, or plumbing.
With a new build, since everything will be brand new, you won’t have to worry about repairs or renovations for a while.
In addition, new homes typically come with a builder warranty. This often includes limited coverage on materials and workmanship for items like windows, HVAC systems, plumbing, and electrical systems.
Energy Efficient
Older homes are built with older materials and systems, which can lead to higher utility bills. New construction homes, on the other hand, are built with energy efficiency in mind.
When you build new, you can create a home with more efficient systems and appliances. The up-front costs will be higher, but you’ll save money in the long run. Plus, if you’re concerned about your environmental footprint, you have the opportunity to prioritize eco-friendly architecture and sustainable materials.
Benefits of Buying an Existing Home
Faster and Simpler
If time is a factor, you’ll be better off buying an existing home than building new. The timeline of a custom build can range from 6-18 months, and unexpected labor and materials delays can push that timeline out further.
And while the home buying timeline can vary depending on local housing inventory (among other factors), buying an existing home is often a much faster process than building. And if you’re working with an experienced REALTORⓇ like the Centric Homes Team, they can streamline that process by helping you find appropriate properties, guiding you through negotiations, and assisting you with paperwork.
Financing a home purchase is generally much simpler as well. With a new construction build, you could need as many as three different loans (a land loan, a construction loan, and a traditional mortgage), and they can often be difficult to secure.
With an existing home, you’ll typically only need one mortgage, and you’ll benefit from a wider range of options when it comes to credit score, down payment, and other requirements.
More Affordable
While costs can vary dramatically depending on location, style of home, and other factors, buying a home is typically less expensive than building new. In many cases, buyers who opt for an existing home can potentially save thousands of dollars over the cost of building new.
With an existing home, you may have higher costs for renovation and maintenance than with a new build. However, those expenses can usually be spread out over time, rather than paying for them all at once. With a new build, your up-front costs will be higher than if you buy. (For example, in addition to building the home itself, you’ll need to pay for all new major appliances at once, rather than replacing them over time.)
In addition, with a new construction home, it’s not uncommon for costs to creep up over the course of the build, as unexpected issues arise or changes need to be made.
Renovate on Your Timeline
Purchasing an existing home doesn’t mean you’ll be permanently stuck with features you don’t like or that don’t meet your needs. You can still customize it and make it your own. But you’ll have the benefit of making those changes as time and finances allow rather than having to do it all at once.
Established Landscaping
When you build new, it can take years to develop the landscaping to maturity. You’ll have to start from ground zero, paying for sod, tree planting, and other basic landscaping before you can even start thinking about planting that flower garden you’ve been dreaming of. Plus, trees will take years to grow enough to provide shade in your yard.
Existing homes usually have at least some basic landscaping in place — such as mature trees, shrubs, and established lawns — that have had years to grow and mature. With the basics in place, you can focus on adding your own touches.
Purchase History
Another benefit of an existing home is that you will have access to the home’s purchase history, which can give you a lot of insight into its potential appreciation value. This will help you estimate
