Tips to Consider When Building a House vs. Buying

 So, you’re on the fence about whether to buy an existing home or build a new one. There are plenty of factors that go into the process, from finding a great location, costs, the neighborhood’s safety, and for some, great amenities. Generations ago, people would live in their homes for upward of 10 to 30 years, and they would pay off their mortgages and remain in the same house well into their retirement years. Today, homebuyers prefer mobility, and sometimes that means changing cities for work or leisure frequently. 

 The average person moves 11.7 times during their lifetime and may own two or more homes. Whether buying a home for the first time or building your dream home is your ideal journey, all home buyers tend to have something in common – buying a home will likely count among the most significant investments they will ever make. Understanding what each option entails will help you make a better, more informed decision in this exciting home buying journey. 

 Buying an Existing Home 

An existing home, also known as a resale home, is previously owned property and not necessarily new. According to the National Association of Realtors, existing-home sales account for more than 90 percent of total home sales. During the pandemic, the housing supply decreased dramatically according to the Federal Reserve. Because of this, it created a sellers’ market, with homes selling well above the list price. But even when the market doesn’t favor, buyers may be seeing houses selling soon after being listed. While this isn’t something to be discouraged about, buying an existing home still has its perks. Older homes boast unique architectural styles, charm, and plenty of character. Buying an existing home is often more affordable than building a new one. 

 Things to Consider with Existing Homes 

Buying an existing home comes with a variety of trade-offs as well, which may include: 

  •  Expensive renovations 
  • Outdated floor plans 
  • No central air conditioning 
  • Issues with plumbing or electric  

 In other cases, some buyers get excited about the process of customizing and upgrading an older home to fit their personal needs. Whether you’re a DIY enthusiast or just someone who enjoys fixer-uppers, undertaking the remodeling process can take on high costs and additional time. The housing market for older homes can also get a bit competitive, which means buyers may have to present higher offers. The housing market is fast-paced, so buying an older home may not be your best bet if you’re indecisive.  

 Buying a New Home 

According to the National Association of Home Builder’s 2021 survey, 60 percent of buyers prefer a new construction home over an existing home. Whether you decide to purchase a home in a popular new subdivision, buy a semi-custom home that you personalize with your chosen finishes and upgrades, or oversee the construction of a custom-built dream home, you will need to find the right home builder to get the job done. So, where do you start? The experience of buying a brand-new home starts with your own research. Consider looking into various locations that peak your interests, architectural styles, and amenities. Find a community, find a lot, and from there, you can choose a builder.  We buy houses in Schaumburg Il.

 Things to Consider with a New Home  

Unlike existing homes, builders tend to be more open to paying for some or all buyer’s closing costs. This should be negotiated early on and put into writing between the buyer and builder. Building a new home also means homebuyers can choose their preferred design elements including: 

  •  Updated floor plans 
  • Large bedroom suites 
  • Central air 
  • Updated finishes  

 Customizations like these allow the buyer complete control over the final aesthetic, especially regarding color palettes and personal touches like countertops, appliances, and more. Building a new home can also be time-consuming, so be mindful of your projected completion date. Weather and other unexpected conditions can delay the building process.  

 It’s also important to check in with your builder to ensure you’re both on the same page; after all, they are crafting the home of your dreams— don’t be afraid to speak up if it’s not meeting your expectations. If all things go as planned, you won’t have to lift a finger. So why are people becoming more interested in new construction? Well, according to a 2020 NARS report, 39 percent of buyers choose new construction to avoid costly renovations or electrical or plumbing problems. 

 How to Know Which Is the Right Choice for You 

Figuring out which home is best for you is all a part of the home buying journey. Embrace the possibilities while weighing the pros and cons of each. There isn’t a right or wrong choice, just one that will take some thoughtful consideration. Remember to enjoy the process and happy home buying! 

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