Buying a home vs Building a home



Do you want to buy an existing home? Do you want to buy new construction? Do you want to build a home? There are a lot of things to think about before you make your decision and pros and cons to each of the options. There are several ways to go about purchasing a home: Buying an existing home, Buying new construction, Building a home.

Buying an existing home


Pros

 1. The home is complete and ready for you to move in. Barring any repairs that may need to be done the home is complete and ready for new owners to move in as soon as the sale of the home has closed. There's no waiting for construction to be completed.

2. The neighborhood is often established. You know what is on the lots next door, across the street and behind you. You have trees and established lawns.

3. The home itself is "settled". Having a previous owner allows any oversights in construction to have time to come to light and be repaired. Often times you don't know how a roof will perform until the first rain and many foundations actually settle and if there are any issues with the foundation they will have time to be discovered.

Cons

 1. Other people's styles. Often times one owner's favorite wall color will not be the next owner's favorite. There may be wall paper to deal with.

2. Updated construction styles and efficiency. Improvements in efficiency are always happening, an older home may not have the most energy efficient windows or insulation. Floor plan designs also change frequently, an older home may have a more traditional floor plan whereas a new home may have more current "open concept" design.

Buying new construction


Your area may have new neighborhoods that are being developed by one or more builders.

Pros

 1. Everything is new = warranties! Your appliances, your roof, your entire home basically will have a warranty. This affords some reassurance should any unexpected issues occur.

2. Updated floor plans. Builders try to stay current with their designs, it's part of how they stay competitive. Regardless of your style (contemporary, farm house, Tuscan, etc.) you can find a floor plan that is current. Sometimes you can even choose some of the finishes if the builder hasn't completely finished construction.

3. Energy efficiency. Buying a home is expensive, builders know this. Builders are constantly looking for ways to help the buyer save money in the long run and utilities are a great way to do this. Tankless water heaters, energy efficient insulation and windows, solar panels, you name it - there's probably a way you can save money over the course of home ownership.

Cons

 1. Time. New developments are often a little farther from town. How do you feel about a longer commute time? Speaking of time, some new developments will have lots of homes ready for move in, but sometimes buyers may have to wait a bit for their home to be build. Are you prepared to wait a little longer to move in?

2. New developments will have changes to utilities as they become more established. Be sure to verify if there is good internet. You may start out on a water coop and later be moved to city water as infrastructure improves.

3. These neighborhood developments are often on smaller lots. You can find new developments on larger lots, but they also come at a premium price and can be even farther from town. You will also have to wait for your grass, trees and landscaping to become established.

Building your home


Pros

1. You get to choose everything! You will review floor plans. You will review actual flooring. You will review finishes and paint colors. You can build your dream home!

2. You get to choose your location. Lot sizes aren't necessarily predetermined by the neighborhood.

Cons

1. You get to choose everything! Many people find these details a bit overwhelming. Sometimes we don't think about how many decisions have to be made in order to get a home built. You can purchase new construction in a planned development and many of those decisions are made for you (minimum square footage, siding type, set backs, etc.).

2. Time. It will take plenty of time to have your new home be ready to move in. If you need to sell your existing home in order to finance the building of your new home you will need to consider where you will live during that time. If you are renting, will the landlord be flexible if you need to stay longer due to construction delays?

3. Did you think about utilities? You will need to make sure all utilities are brought on to the property of your choice. If you aren't going into a planned subdivision these will be your responsibility. There is always a cost with bringing all utilities onto a property, and these costs can vary widely depending on where you are as well as how easy it is to access the land. You may even be responsible for upgrading the road or driveway before these utilities can be brought in.

4. Financing. If you are wanting to purchase your own lot and build on it you may be looking at two separate loans. These are financed very differently than your usual home loans and you will want to talk at length with your loan officer about this. Many times you will need to get a land loan and then a separate construction loan. These can often be combined, but not until all construction is complete, and the property is still subject to an appraisal just like existing homes.

Just a couple of final points:

 1. Get your inspections. Even if your builder is amazing, they cannot be everywhere all the time. They hire subcontractors to do the work, and everyone is human. An inspection may not catch everything but a licensed inspector knows what they are looking for (they look at homes every day) and can help you get many things checked off your punch list.

2. Don't forget to take your Realtor® with you even when you are buying new construction or building. Most builders welcome Realtors® to help with the sale of their homes. The sales consultants who work for the builders are there to work on behalf of the builder, as the buyer you deserve to have the peace of mind that you have someone working on your behalf as well.

I would love the opportunity to help you navigate all the decisions that are involved in purchasing a home! If you would like to talk more about this & how to get ready to purchase give me a call!



Michelle Peacock, Realtor®
TM5 Properties
979~220~8033
michelle@tm5properties.com


Location: College Station, TX, USA

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