Most people looking to move into a home of their own shop for an existing home. Building a home is an option as well though. Which is the smarter move? Let’s compare the benefits and drawbacks of building a home vs. buying an existing home.
Reasons to Consider Buying an Existing Home
- On average, it is less expensive to buy a home than it is to build a new one (there are some exceptions, however).
- Many existing homes are ready to immediately move into and enjoy. Everything is in place, including the landscaping.
- While buying a home may seem complex, it is a simpler and faster process than building one.
Are there any drawbacks? Well, you cannot fully customize an existing home from the ground up, though you can certainly modify and upgrade it later.
Reasons to Consider Building a Home
- The biggest reason to build your own home in most cases is because you can customize every square inch of its layout and design. It truly can be your ultimate dream home.
- You do not need to compete for the home, only for the land—and competition is usually less steep for land.
- In some cases, it is possible to build a home for less than you would buy an existing one for, especially if you choose a prefabricated building system.
- You can design your home to be energy-efficient, which can help you save money in the long run and reduce your carbon footprint.
- So long as your employ a skilled team to build your home using quality materials and construction techniques, your home should require little maintenance for some time to come.
As far as drawbacks go, there are higher costs in most cases. Additionally, the process of building a home and financing new construction is a complex one involving many steps. It can be more challenging to be approved for a new construction loan than a mortgage to buy an existing home, so you will need a competitive borrower profile, along with excellent documentation of your construction plans.
You also will need to navigate the local building code requirements and zoning ordinances so you can apply successfully for your building permits.
So, you will need to decide whether the benefits of building a home outweigh the extra hoops you need to jump through to make it happen.
Build or Buy a Home With Competitive Financing
As you can see, whether it is “better” or more affordable to buy a home or build one very much depends on your specific situation, the opportunities available to you, and your goals for homeownership. To decide on a path forward, you will need to assess the pros and cons of each option and determine which will be right for your needs.
If you are ready to get started, please call (248) 788-0800 to schedule your consultation. We can help you buy a home or build one in Farmington Hills, throughout Michigan, and in 14 other states.
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