Pros and Cons of building a home
If you’re considering building your next home, but aren’t completely sure of your options, here are the pros and cons you should weigh before making a decision.
PROS
1. Inventory - The inventory of existing homes is currently down by 40.6%. leaving homebuilders are rushing to meet the demand. Chances are if you’re looking to buy in 2021 you’ll be considering new construction. With new construction you won’t have to fight other buyers in a multiple offer situation.
2. Fewer maintenance costs - During the first few years, you’ll save money on appliance repairs and maintenance costs. You can trust your HVAC system or roof will stay intact for at least a decade. Less maintenance will save you time and money down the road.
3. Location - You’ll get to pick the location of your home! One of the first steps is shopping for a lot to build your home on. Some lots may be more expensive than others, but you’ll have the choice of a lot with a view, a wooded lot maybe even one near water.
4. Exterior and interior customization - Most builders will allow you to customize your home. Some will let you move walls. You can pick your flooring, cabinets, appliances, paint and any number of other features.
CONS
1. Longer timeline: While an existing home is generally move-in ready, a new build can take several months to complete. To top it off there are several things that can delay the process, including: weather conditions, delays in shipping or human error. Be sure to include a timeline in your contract and communicate with your builder throughout the process.
Sometimes you’ll have a gap period between the selling of your old home and moving into your new home. You can plan for the gap period by finding a rental to live in during the interim.
2. Limited flexibility on price: There’s not much room for negotiations on new builds. You can ask the designer and contractor for cheaper alternatives to your floor plan and building materials. Do your research and hire professionals who can give you the best price for your new build.
3. Unexpected out-of-pocket expenses: The first thing you’ll ask is “How much does it cost to build a house?” The answer is… the more you customize your home, the more money you’ll end up paying. Before signing the contract, ask your home builder what the base price includes. Then set a budget for what you’re willing to spend, and stick to your budget when making your selections.
4. Missing Landscaping: Chances are you probably won’t get the lush landscaping that you would with an existing home. But at least you can plant what you want once you move in to make it your own!
Bottom line:
Building a home is a personal decision. Each person will feel differently about the pros and cons listed above.
We generally find our clients experiences buying new construction have been a positive ones. To figure out if building is the right choice for you, be sure to do your research, and know what you want in a home. We also recommend bringing an agent to meet with the builder’s sales person so that you have someone to advocate for you.