Building a Home or Buying a Home, Which is Better ?
Building a home vs buying which is better?
In 2021, the average cost of constructing a home ranged from 250 to 300 dollars per square footage, not including the cost of purchasing land if you do not already own one, which ranges from 80 to 200 thousand dollars depending on its size and location. Meanwhile, the typical cost of purchasing an existing two-bedroom single-family home starts anywhere from 300,000 to 400,000 dollars. As a result, whichever is cheaper will be determined by a variety of factors such as the present economic situation, the housing market, the property's location, the amenities you like, mortgage rates, your mortgage pre-approval amount and many more.
Pros of building a home
Now that we've discussed costs, let's look at the specific advantages of building a home:
1. Customization:
It's not always simple to find exactly what you're looking for in a pre-existing home. You will have complete control over the design of your home if you choose to build one. You can personalize the floorplan to suit your needs and those of your family. When you build a home from the ground up, you may customize everything from the layout, cabinets, and flooring to the sinks, lighting, paint colors, and doorknobs to fit your lifestyle and tastes. The granite counter tops and as well as the spa-like bathroom desire can all be added in your newly built home.
2. To avoid a bidding war:
Homes can sell rapidly in a hot market, making home-buying competition strong. Finding a home with the qualities you want might be challenging and frustrating depending on your location. When you finally discover the home you desire, you may find yourself on the losing end of a bidding war. When you build a home, though, you won't have to worry about outbidding other purchasers or dealing with the stress that comes with house hunting. With properties flying off the market at such a rapid pace, it might be difficult to discover the greatest existing property at the best price. However, if you already own the land on which you wish to build your home, you have no competition!
3. Lower maintenance and move in ready:
Even if it's only the color of the walls, even the most move-in ready homes may have a few things you wish to tweak. When you build a home, however, you get exactly what you want, from the flooring to the cabinet hardware. This means you can relax and enjoy your new house right away. You won't have to worry about major repairs or significant maintenance difficulties for the first few years because new houses are built to follow current construction standards and have cutting-edge technology. That means no leaky roofs, chipped floors or failing electricals.
Cons of building a home
Although it might be a thrilling experience to construct your own home, it may not be the best option for your family. There are other aspects to consider, including your budget and the amount of time you have set aside to settle into your new home. We already know that building a home from scratch is more expensive, which isn't such a bad thing if you're able to afford and budget for it. But, just to cover all bases, let's look at all the additional disadvantages of building a house:
1. Longer wait time:
Aside from the expense, the most significant disadvantage of building a home is the time it takes to complete it. A new house takes an average of seven months to build, not including the planning and approval processes. This implies you'll most likely have a period of transition between selling your old home and constructing your new one. As a result, you'll need to budget for the cost of renting until you can move into your freshly constructed home.
2. Stress:
You'll have to buy property, choose a home design, choose flooring, fixtures, cabinets, countertops, interior trim, exterior trim, and so on when you build a house. You must complete all of this while staying inside your budget. Managing all the details that come with home construction requires time and effort. Don't underestimate the amount of energy you'll need to get everything done correctly.
3. Hidden cost:
Those dollar signs on the sticker for countertops, fixtures, and appliances are merely the tip of the price-berg in terms of costs. Upgrades can quickly increase the cost of your new home, and they may or may not be included in your contract price. Budget for only those expenses that you can pay for with cash. Don't forget about the price of landscaping and small finishing once you have moved, they will sneak up on you as well.
There are several aspects to consider when deciding whether to purchase or construct a home. Before making such a significant decision, speak with a loan specialist about mortgage rates, mortgage pre-approval, and how much loan you can afford using our Jannou loans calculator. Let us guide you through the loan-buying process so you can make the best decisions possible.
