Buy or Build?
A house is the biggest investment most people make. Most times, buyers in Burbank use up a lot of energy and time in finding or designing the “perfect home” before putting pen to paper on any contract. Price, location, Market trends development, homeowners’ association fees, property tax, and the property status are taken into account during the search for a home. In addition, every buyer usually has a wish list that has specific needs (the things which the potential home must have) and also wants (these are the features that the buyer would like to have, but if necessary, can do without). While the process of buying a home involves several important options, the first of many decisions that aspiring homeowners should make is whether to buy an existing home or to build a new home. Each of these choices has its own pros and cons. This post is to help you make a good choice by analyzing both options.
Should you buy an existing home or build one?
- Buying an existing home
Buying an existing home has two main benefits: convenience/comfort and cost. Once your lender has approved you in advance, you can check around, choose a house and then make your offer. A good real estate agent will help simplify the process by helping you in finding the right property, guide you through the negotiations and helping you with the documentation. Once you have your offer accepted, you would be able to complete the deal and move into the home within six weeks.
Although this process includes several steps, which include viewing homes, financing, making offers, inspection, and deal completion, it is the convenience of moving immediately that’s quite compelling to many people, which makes them choose an existing home instead of building a new home. This is the case for buyers who have a busy schedule, for example, those who are moving into a new neighborhood because of their new job or those whose children are to start in a new school.
Then you have to deal with the issue of costs. In many cases (although not all), it is quite cheaper to buy an already built home, this is according to information by the Homebuilders national Association. Once you have found a desirable home, you can use your mortgage calculator (you can get one online) to get an estimate of the cost of buying the home based on the current interest rates. Depending on the real estate market you’re targeting, existing home prices still may be quite low because of the financial crisis and the real estate crash, which caused a noticeable reduction in property prices across the country.
Customization and Convenience
Another reason why an existing home is a better option is that if you want to be in a specific neighborhood (maybe close to work, friends, school, and maybe family), chances are also that the house will have a mature landscape, so you do not have to break a sweat about starting your lawn, planting flowers or waiting for the trees to grow. And if you desire to live in or near the city, the best solution is buying an existing home, since all (or at least most) of the city center would have been built on.
On the other hand, a very big disadvantage of buying is that you do not get the exact structure you desire. You may not like the floor plan, maybe you want the bathroom on the first floor or another room downstairs. Especially old homes, they can be obsolete and no longer meet the needs of many buyers. For instance, a beautiful four-bedroom home could have just one bathroom, or maybe the kitchen is too small and have no provision for expansion.
If you can’t find a home with all the features you want, or the features in the homes you found are not those you want, you may have to spend money on repairs, remodeling, decoration, landscaping, etc. and these expenses must be included in the final cost, especially when you’re comparing several properties.
Building your home
Building your own home doesn’t offer this same ease and convenience as you get buying an already built home. Not only must you find a piece of land (that is probably not in an established neighborhood), but you must also factor in the search time for an architect or a builder and choose each element of your new structure. You should also think about systems, for example, does the land have access to water and sewage, or do you need a well and a septic tank, as well as environmental and several other permits?
The biggest advantage is that you are more definitely going to get the exact home you want. For most people, this reason alone is big enough a reason to choose the option of building a home. But that’s not all, there are other benefits too. There is more efficiency in a new home, for example, the energy codes are new, which includes better HVAC (i.e. heating, ventilation, and cooling), insulation and the air filtering standards.
Another advantage of building your home is that a new home could be better for you for some of these reasons. A new building is less prone to health problems or toxic materials from an older home such as lead paint, asbestos, mold, and so on. And you can build it with modern materials which makes it more environmentally friendly. Using green appliances or those rated star appliances, better plumbing features, more efficient toilet, and better electrical systems will help you build for the long-term future a more sustainable home.
Although initial construction costs may be higher, it may be easier to recover your investment.
If you build your home, you will make more profit when you want to sell it. New homes are more appealing than older homes and this can be a huge bonus when you want to relocate.
Also, a new home requires fewer repairs and less maintenance, and this helps you save money and even time. With a new home, you have a warranty, which means you are covered should anything go wrong.
Aside from money issues, when you build your home, there is a sense of emotional attachment, which comes from the fact that you are living in your home, the fresh smell and the feel that no one or pet has stepped into your home, let alone the private areas.
You get a sense of satisfaction that you created something which defines your personality.
The biggest challenge of building a home is the high costs and the longer period of time it takes to build, as either or both of these can increase during the construction process. In other words, you might need a reputable home builder to limit the risk of your home exceeding your budget, or take longer time than expected.
In conclusion
You might start your search for a home looking for a perfect already existing property, in the end, you may choose to build the exact structure you want. On the other hand, you may have had the intention to build and then decide that an existing house is better.
Your choice should be based on your taste, budget and time schedule.
In any case, you have to work with an experienced and qualified professional (whether real estate agent or general contractor), they can help make the process progress in the best possible way.
