Should I Build A New Home Or Buy An Existing Home?
For many people there is no replacing the feeling of being the first to live in a brand new, energy efficient home, while others want a home with character and a landscaped backyard with established trees.
Whether you sit firmly on one side of the fence, or are keeping your options open, we compare the pros and cons of buying a new home with an existing older home.
Advantages of Buying a New Home
The biggest advantage to building or buying a new home is the ability to customize the home to meet your needs. New homes are often built with open living floor plans, and offer bedroom and bathroom configurations to meet the future needs of a new or growing family. Empty nesters often prefer to downsize into a new home or apartment with minimal maintenance.
In a new build you get to personalize how your home will look when it’s completed. Here are a few ways a new home can be customized your home:
Insulated windows and walls
Energy efficient HVAC system
High end kitchen and bathroom cabinets
Granite counter tops
Tile or wood flooring
Cons of Buying a New Home
While some homeowners over build their new home so that the end result is above current neighborhood values. The resale value of a home from a new housing community or apartment building are competitively priced and should reflect current market value if you need to sell it within a few years.
Allow at least 120-150 days to build your new home. Depending on the location, weather and building certificates for each stage of construction could delay progress.
Advantages of Buying an Existing Home
If you are looking for a home with certain charm and characteristics, such as Arts and Crafts woodwork, or a Craftsman bungalow with a wide front porch and multi-pane windows, or a modern midcentury ranch, you can search specifically for these features in an existing home. Also, when you buy an older home, the neighborhood will more likely be established with tree-lined streets, schools, shops and other amenities.
It usually takes 45-60 days to close and take possession once a purchase offer is accepted on an existing home. That timeframe is considerably less than the average time to build a new home, which ranges between 120-150 days.
Cons of Buying an Existing Home
Potential health hazards including moisture, mold, asbestos, radon and homes built prior to 1978 in all likelihood have some presence of lead paint.
If an existing home is in your ideal location and offers good bones, you may be faced with renovation expenses to make the home fit the needs of you and your family. While you can negotiate repairs with your offer, consider getting a renovation loan that can be rolled into your mortgage to finance renovations.
Qualifying for a new home loan
Starkey Mortgage has loan officers in 13 states who can qualify you for a new construction home loan or a mortgage on a turnkey property. Find a loan officer in your region who will work with you throughout the entire process.