Building a House vs. Buying An Existing House

Trying to decide whether building a new home or buying an existing house is a good “problem” to have, since either one is a path to the advantages of homeownership. There are pros and cons to each, of course, and your individual circumstances are factors in your decision as well. (There’s even a hybrid choice: Buying a brand-new home that’s already been built by a custom home builder!) Since buying any type of home is likely to be the single largest financial transaction you may ever make, it’s worth the time to research your options and know what to consider before putting money down on your next address.

What to know about building a new house.

Building a house is exciting, challenging, and everything in between. Here are a few things to think about if you’ve never had a brand-new home built before:

Pros:

• Your home can include all of the features you want and none that you don’t, so it can reflect your taste right down to the last detail.
• You probably won’t have to deal with any expensive repairs during the first few years. As Forbes notes in its article, Is Building A New House Realistic?, “No immediate repairs will be needed once you move into the house. It’s obvious that an older home will require more maintenance. You won’t have this type of issue with a brand new home.”
• You can choose to use the latest, most energy-efficient systems, appliances and materials, which can save you money over the life of the home.
• Your home will be built in accordance with up-to-date building codes, which can make it safer and stronger.
• You won’t have to put any sweat equity into knocking down walls or tearing out flooring that doesn’t suit your taste or needs.

Cons:

• You’ll need patience: It can take many months to build a house even when everything goes smoothly. If the project runs into any obstacles—extreme weather events or the unexpected unavailability of some materials come to mind—the process can take much longer.
• You may need to factor in the cost of renting a place to live if you’ve sold your current home long before your newly built home will be ready.
• Speaking of budgets, expect the unexpected: You may decide halfway through the build that you’d like some additional upgrades or want to make a change in layout or materials, and that can have quite an effect on your overall costs.

What to know about buying an existing house.

If you’ve already owned a home that you didn’t build, you know the ups and downs. If you’re a first-time homebuyer, however, consider these factors:

Pros:

• With an existing house, you pretty much know what you’re getting since you can see it and walk through it. You don’t have to imagine how spacious the rooms will feel, how the light will come in, or how the layout will flow from one room to the next.
• Unless there are unforeseen events or circumstances, you probably won’t have to wait long to move in. This may be particularly important if you’re relocating due to a job change or need to get out of a home you’re renting by a certain date.
• You may have some room for negotiating on the price of an existing house due to variables such as how eager the current owner is to make the sale or what market conditions are at the moment. New construction won’t have such variables in play.

Cons:

• There can be surprises, and not all of them may be pleasant. Although you should have an existing home professionally inspected (some lenders may require an inspection, but you can forego it if you’re not financing the purchase), things may get missed. That walk-in shower may have great-looking tile and no obvious signs of problems, for example, but it may also be covering up a less-than-perfect repair job on water-damaged studs that won’t become apparent right away. You’ll need to have some rainy-day funds stashed away for situations such as this.
• You won’t get exactly what you want, so it’s a matter of trade-offs. Perhaps owning a home in a particular neighborhood is what’s most important, for example, but the choices there are limited. That can mean not getting the master bedroom on the first floor as you wanted, or settling for a kitchen that can’t be made more functional because there’s not enough room to expand it. You’ll have to prioritize, because it’s likely that no existing house will deliver everything. Investopedia notes that unless you find a home in perfect condition and that has just what you want, “you will have to spend additional money on remodeling, repairs, decorating and/or landscaping. These additional expenses should be factored into the overall price, especially when choosing among various properties or comparing the cost to building your own house.”

Explore your options with SEDA New Homes.

Do you want all of the advantages of owning a brand-new, customized home without the hassles and time delays? Or are you looking for recently built communities that have move-in ready homes available? Look no further than SEDA New Homes! As award-winning custom home builders for nearly four decades, we’re known for offering value, choice, quality and service. Our 11 communities give you a range of floor plans and price ranges to choose from, and the ability to personalize your new home your way. Many of our communities give you the added option of move-in ready homes at great prices. We’ll even build your custom dream home on your lot!

Browse our communities online, or come see them for yourself today.