Potential homebuyers tend to spend a lot of energy and time looking for the “perfect” house before they pay anything or sign a contract. Factors like homeowner’s association fees, property taxes, market trends, property condition, and location all come into play when making this important decision. Also, most buyers will have a specific list of the needs and want for the home they plan to purchase.
Even though the home buying process is full of choices, one of the first decisions that must be made is if the individual or couple is going to purchase new construction or pre-built home. Both options have certain pros and cons. Keep reading to learn more about the difference between new build homes, pre-built homes.
Purchasing a Pre-Existing Home
There are two main benefits offered by purchasing a home that is already built. One is convenience. The other is cost.
After being pre-approved for a loan, it is possible to shop around and choose the home that best suits the buyer’s wants and needs. Next, it is time to make an offer.
Hiring a real estate agent can help to streamline this process and help a buyer find the best properties for their needs and budget. The real estate agent can also provide their services for negotiations and help with all related paperwork. After the offer has been accepted, it is possible to close the deal and move in within a few months. This is dependent on the specific circumstances, though.
While the process to buy an existing home does involve several steps, including financing, visiting the properties, making offers, different home inspections, and closing, many people like the ability they have to move in immediately once the sale is finalized.
Cost and Schedules
The need to purchase a move-in ready home is also important for buyers who have a tight schedule. For example, if someone is relocating for a new job or if they have children who are starting at a new school. There is also the cost to consider. In some situations, it is much more affordable to purchase an existing home. After a potential home is found, use a mortgage calculator to better understand what the total cost of buying the home is based on the current interest rates.
While it depends on the target real estate market, the cost of existing homes could be favorable. This is something to keep in mind when trying to make this important decision.
Customization versus Convenience
Another important reason that purchasing an existing home is if someone wants to move into an established neighborhood that is near their friends, school, family, or work. Usually, these properties will have well-planned and mature landscaping elements, which means there is no need to start from scratch. Also, if someone wants to live near town, they should consider existing homes, because this may be all that is available.
While all the above is true, it is also important to note the main disadvantage offered by purchasing a pre-existing home. A buyer can’t get everything they want. While the floor may be perfect, the half bath off the master bedroom may be problematic.
Some older homes are functionally obsolete. This means they are unable to meet the needs of modern buyers. For example, if someone were to find a beautiful four-bedroom home, it could only have a single bathroom, as this was considered standard in the past. The kitchen may also be too small, and there is no possibility of expanding it at a later date.
Unless someone can find an existing home that offers everything they want and that is in perfect condition, they should plan to spend money on decorating, landscaping, repairs, or remodeling. It is important to factor in these additional costs to the purchase price to know the full cost of the purchase.
Benefits of Having a New Home Constructed
Building a new home will not offer the same level of convenience that buying an existing one does. In addition to having to find the land, which may be outside of the perfect neighborhood, it is also necessary to consider the amount of time it will take to find the right builder or architect. It is also necessary to choose every element of the new construction.
One way to streamline this process is by purchasing in an existing development. However, this could limit the options. It is also necessary to consider the systems. For example, will the land provide access to municipal sewage and water? Does it require a septic system or well? Are certain environmental permits needed?
The main advantage of this is that a person is more likely to get just what they want. As a result of this, many people choose to build rather and buy. However, there are a few other advantages to know about, too.
For example, it is possible to have a more efficient home constructed. This is going to help reduce overall costs and do something good for the environment. It can also help the homeowner save money on their utility costs each month. Working with a professional home builder may make this decision a bit easier.
Making the Decision: Buy or Build?
Each person is unique. Therefore, there is no simple, black-and-white answer that will help someone decide if they should buy an existing home or have a new one built from scratch. While both options have pros and cons, a home buyer must consider the factors here to figure out what they want to do. When this is done, a person can enjoy the decision they ultimately make, regardless of if it is to buy or build.
Bright Homes is the premier home builder in the Central Valley. We started business in 1956, and our mission is to deliver superior craftsmanship, provide superior customer service and exceptional value to our customers.