Pros and Cons of Building a New Home
Pros of Building a New Home
Your Dream Home Comes to Life
The upside of building your home is knowing you can move into a brand new home that has everything you’ve ever imagined. Picture your dream home’s design, and then imagine watching it come to life in stages. While some homebuyers do purchase their forever home without building it, they often need to renovate extensively in order to make it their dream home, sometimes spending more than originally planned.
If you’re building your home from the ground up, you’ll have full control in dictating your home’s specifications from the start. If you have very specific design ideas for your home’s interior, including aesthetics of features in kitchens and bathrooms, it may make more sense for you to start from scratch. An existing home may come with some updated features, like granite countertops and stainless steel appliances which may boost the home’s purchase price, but those may not be your style or taste
A Fresh, Snag-Free Start
Roof damage, outdated plumbing, faulty heating systems, and electrical problems are some common issues that you may encounter with any already-built home. With a newly-built home, however, you may not have to spend money on these renovations for quite some time. Home maintenance is not cheap, and some of these repairs can cost you thousands of dollars. For example, Home Advisor suggests that a typical roof will generally cost $7,000 or more in materials and labor to replace. Now, that’s not to say all renovations will be as expensive. According to Home Advisor, minor repairs can cost less than $500 (if done properly).
Newer homes tend to be more energy efficient. Not only can this translate to more affordable utility bills, but being energy efficient is also better for the environment. The U.S. Department of Energy suggests, “Before you design a new home or remodel an existing one, consider investing in energy-efficient appliances. You'll save both energy and money, and your home will be more comfortable and durable. The planning process is also a good time to look into a renewable energy system that can provide electricity, water heating, or space heating and cooling.”
If you are specifically looking to build a home for the energy-efficiency aspect, search for a builder that specializes in those types of new construction homes. Brite Homes, for example, a home builder in Orlando, Florida offers the highest standards of energy-efficient homes at a surprisingly affordable price. These homes are powered by solar panel technology and provide homeowners the peace of mind that comes from clean, green living. Their homes are not only convenient and sustainable but also quite luxurious.
Cons of Building a New Home
Probably the biggest downfall to building your home can be the higher cost associated with building. Generally, constructing a new home tends to be more expensive than buying an existing one. The cost of the land, architectural plans, labor, and even the cost of materials may vary based on your location. If you decide to build, you’ll (especially) have to be sure you pay close attention to the contract details and be extra cautious not to go over your budget.
Although the cost of building a new home will most likely be one of your deciding factors, don’t forget to include the time it will take to plan and then construct a new home. If you’re building a home from the ground up, you have to go on a time-consuming scavenger hunt for builders, find and purchase the land and set aside time to customize all the components and unique features you’d like in your dream home. Aside from this, you’ll also have to pencil in the amount of time it will take to actually build your home.
The Census Bureau’s Survey of Construction reported that the average length of time from start to completion of a new single-family home is just over 6 months, but can often take much longer. Compare this number to current data from Ellie Mae that shows the average amount of time it takes for homebuyers in the U.S to close on their home purchase. As of February 2019, leading mortgage software company Ellie Mae reports that the amount of time it takes homebuyers to close on home purchases (across all loan types) is 42 days. If you have well over six months to spare as you wait on your dream home to be designed and built, perhaps this is not necessarily a negative factor, but for those individuals who don’t have all the time in the world or a place to live throughout that lengthy process, purchasing an existing home may just be the better alternative.
Buy or Build?
Most people decide whether to build or buy an existing home after comparing the cost between the two, although affordability isn’t always a concern for everyone. You can certainly find your dream home by searching existing homes; it all depends on the time, money, and commitment you’re willing to dedicate toward this type of investment. Purchasing an existing home can save you a lot of time and money while building a new home generally appeals to those with very specific preferences and no time limit.
If you need help deciding which option is more suitable for you, we’re here to help.
At DLP Real Estate Capital, we are experts in both home buying and home building and would be pleased to help you find your dream home. We’ve built hundreds of single-family homes, townhomes, and twins, completed over $100 million in redevelopment work, and we have a portfolio of nearly 10,000 rental homes. If you decide to purchase an existing home with DLP Realty, you’ll be in good hands with our team; we’ve been named in The Wall Street Journal as one of the top 15 real estate teams in the U.S.