Nowadays, it seems like everybody’s out to buy a new home, and even though the real estate market has substantially cooled down compared to a few months ago, people are still being priced out, with existing home sales falling by 2%. As a result, more and more people are entertaining building a new home instead. They are warming up to the idea of property development due to the not-so-pleasant housing supply situation that’s currently running amok in the real estate market.
However, despite the apparent benefits of building a new home, many first-time homebuyers fail to see that purchasing an existing home is a lot more convenient, affordable, and efficient in the long run when we compare the costs of the investment over time. And so, to help spread awareness and offer sound financial advice to first-time homebuyers, we’ll be going over the benefits of purchasing an existing home and the situations wherein building might be better.
The Convenience Far Outweighs The Customization Aspect
In the first place, the convenience factor alone makes up for a considerable chunk of the argument behind existing homes because the last thing you’d want to incur is more financial stress and anxiety when buying a house is spread over a more extended period. Getting that dream house of yours should be a fun and fruitful experience, not something that you’ll dread or worry over for the next few years, especially during a global pandemic.
- Shorter Waiting Time And Move In Quicker: Number one, after you’ve chosen a home, made the purchase, and signed all the necessary documents, your cumulative waiting time is much shorter compared to building a house that would take substantially longer to complete. Therefore, you can move in quicker, set yourself up, and ease yourself into the place sooner, giving you much more freedom to feel it out.
- Renovations And Remodeling Are Always An Option: Number two, while a lot of people like to make the argument that customization is much better when building a house from scratch, let’s not forget that renovations and remodeling are still on the table. So, if you ever find anything that needs changing or a little uplift here and there, you’re more than able to fix the place up with the right investments to design.
- Increased Chances Of Finding Or Landing Better Deals: Lastly, during a time when being frugal and smart with our money is non-negotiable, you’ll have a much better chance at finding a great deal through existing homes than building one yourself. Yes, you will encounter moments when someone bids against you, but if you buy a home instead of building one, you won’t have to think about the building materials, layout, zoning, and other construction-related expenses.
Of Course, There’s Nothing Wrong With Choosing To Build
Although purchasing an existing home is objectively better in most cases, that’s not to say choosing to build is inherently bad. Sure, you will have trouble trying to compete on price and convenience, but if both these advantages don’t matter to you, the customization aspect will always win out. So, the decision to buy or build a home is still up to you.
- More Control Over Your Dream Home: Firstly, building your dream home gives you more control over what the finished product looks like and what other features you’d like to find in your house. You see, existing homes won’t always live up to your expectations, and even if you might like one aspect, there will be many others that don’t meet your criteria. However, building from scratch blasts away all these problems because you get to influence the final design.
- No Bidding Wars So You Can’t Get Priced Out: In addition to the customization, you won’t have to worry about being priced out of a good deal because you won’t have to bid against anyone else for your house. Yes, the overall cost will come at a price premium instead, but it will save you the hassle of negotiating a final closing deal, and you can expect everything to be clear-cut.
- Can Be Designed For Long-Term Cost Efficiency: Branching off the price argument, although you will be paying a price premium, you can invest in materials, appliances, and other home features that guarantee long-term cost efficiency. For example, your home design could facilitate energy savings with natural ventilation, plus you could also install solar panels right at the start to offset utilities.
Location, Situation, And Weighing Your Options
In conclusion, everything boils down to location, situation, and weighing your options according to your current circumstances. And unless you’ve got deep pockets ready to take on home construction and don’t mind the waiting time, then you might want to reconsider looking through those property listings again.