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BUILD A NEW HOME OR BUY AN EXISTING HOME?

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This question pops up from time to time in real estate. There is certainly no replacing the feeling of walking into a brand, outstanding new home but again the warm feeling of an existing home loaded with natural charm and character is unmatched. This doesn’t make the decision any easier, however, knowing the pros and cons of each option can go a long way.

What is a new home? One that has never been lived in before. Not necessarily one that has not begun the build phase. One main advantage of a new home is the ability to customize the home to your exact preferred wants and needs. In a new build, you control exactly how your home will look when it’s completed; an obvious benefit to building a new home. Ever heard people say, ‘there’s nothing like the smell of a new car’? Well, the same can also be said about a new home. Foul odours are one of the top things that scare buyers away from an existing home. With a new home, you do not have to deal with odours such as smoke, pets, garbage, or any other unpleasant odours which is clearly desirable.

A value of a home that needs to be strongly considered when deciding whether to build a new home or buy an existing home is the resale value. Generally, the resale value of a newly built home is less than the cost of building the home itself, although, in certain situations, the resale value can be significantly less.

Now to a few cons of building a new home. Although building time may vary from builder to builder, it can take a significant amount of time for a new home to be built. Again, if you decide to build a new home, make sure you are prepared for any unexpected costs that can arise at any time which is an obvious drawback to building a new home versus buying existing home-excavation costs for example.

What is an existing home? One that has been lived in before no matter how old the home may be. One remarkable benefit of an existing home is that you can get a larger home, updated home and a home in a prime location thereby giving you more for your money. In addition to the above, an existing home is very likely to be in an already established neighbourhood with all the basic social amenities.

One downside of buying an existing home is the fact that you are not likely to find a home that has absolutely everything you are looking for. Be ready to make sacrifices when buying an existing home. It may be the location of a dining room or the size of a closet in a bedroom. Honestly, with an existing home, you cannot determine all the details of the home. Be prepared to make certain desired changes and as you may be aware these desired changes come with costs. Truth is, after buying a home, many buyers don’t have tons of money remaining hence money may not be available for the desired upgrades and renovations.

The above pros and cons to both options; that is, buying an existing home or building a new house should be able to aid you in your decision. However, whichever option you choose, be ready for an exciting experience.

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