A home is not simply a roof over our heads but also a statement of our individuality. A house can define us. It expresses our personality, interests and even our beliefs. Considering these factors, it is not surprising that buyers are torn between whether to buy an existing home or to build one themselves.
There are pros and cons to buying an older home versus building a new one. Some of the benefits maybe obvious and others can be easily overlooked. So, when it comes time to buy, which will be a better choice for you – buying vs. building?
The Appeal of Building Your Own Home
Perhaps the strongest factor supporting the construction of a new residence is in the fact that the homeowners have complete freedom to design the home to fit their lifestyle, architectural bias and current design trends. Buying an existing home is often a matter of deciding which undesirable aspects a buyer is willing to live with. Not so with the construction of a new home.
A new house is generally maintenance free for several years after construction. Because it has been built based on current construction techniques and with modern technology, a homeowner can rest easy knowing that there should not be any structural, safety or mechanical concerns for many years to come. New homes also tend to hold their market value longer than older existing homes.
An honest evaluation of building a new house must also include a realistic view of the length of time and the amount of energy needed to see the project to completion. It is not as simple as choosing a floor plan and designing the kitchen. There are often delays and problems in obtaining permits, inspections, selected materials and getting contractors to keep to the construction timeline.
Why Buyers Choose to Buy an Existing Property
Cost is often a deciding factor supporting the purchase of a pre-built home. The cost per square foot of an existing property is usually much less than the cost to build. This is even true with homes that are less than five years old. Purchase price, however, should not be the only consideration. Often older homes are in need of repairs, maintenance, upgrading or even a complete renovation. The additional monies, if not careful, can quickly drive the total price of the home over the market value.
Often buyers can see beyond undesirable features – such as an ugly kitchen or worn floor coverings – and see the home’s potential. If the general floor plan meets the family’s needs, often a few improvements are all it takes to make it their home.
Buying a home is quicker than building one. Even if the property is in need of some repairs and updating, this will often take much less time to complete than building a new home from the ground up. Another reason people consider buying a home versus building one is caused by a scarcity of vacant land. If a buyer wants to build a new home in a fully developed city such as Berlin, for example, finding available land can seriously affect their ability to build. Often the only available vacant land will be located in either undesirable neighborhoods or on the outskirts of the city. This can, in the end, affect property value and the ability to sell the property down the road.
In instances where there is a shortage of available land, some buyers have opted to buy old, dilapidated buildings and either tear them down to gain the vacant land or completely gut the interior and start fresh. This is one way to work around land shortages. Building vs. buying is a very personal decision and must be weighed by each buyer individually. If a buyer is intent on living in a specific neighborhood and has budget limitations, buying an existing home may be a better decision. If location is not a factor, but individuality and condition are important, then building a new home may be their ticket to a successful home purchase.
