The Pros + Cons Of Building New VS. Buying An Existing Home

There’s a laundry list of things to think about whenbuying a home. One of the first and most difficult choicesyou’ll have to make is whether to build new or buy anexisting home. Each option has its own set of pros and cons.It’s a good idea to weigh the benefits and drawbacks ofbuilding a new vs. buying an existing home, in order to decidewhat’s best for you and your family. 

Building a New Construction Home  

Who doesn’t love the idea of building their dream homefrom the ground up? You get to pick out everything yourself —from the floorplans to the floorboards. You can even choose thepaint colors for each room, the kitchen countertops, and cabinets,as well as the lighting throughout your home. The options forcustomization are endless. However, this also means you’llhave a lot of decisions to make. If you’re an indecisiveperson, the process can be overwhelming. Additionally, all of theseoptions come at a cost. It’s typically more expensive tobuild a new construction home than it is to buy a comparableexisting home. Part of the “extra” costs of a newconstruction home includes buying a plot of land for it to be builtupon.    

Another drawback of building new vs. buying an existing home isthe amount of time it takes to complete. On average, it takes 7.5months to build a new construction home, Realtor® magazinereported, based on data from the U.S. Census Bureau. It can take upto a month of waiting just for the permit process to start, whichis required to build a new construction home. After that, it cantake up to 6.5 months to build, depending on the weather. If youlive in Florida and it is hurricaneseason, adverse weather can also blow out construction timelinesand projected completion dates. 

On other hand, when your home is built, it will meet currentbuilding codes, feature a more current design, and is likely to bemore energy-efficient. Also, you shouldn’t have to worryabout any big-ticket maintenance items, such as a roof repair. Ifyou move into an existing home and the roof hasn’t beenreplaced in 20 years, that bill (and the water from the leaky roof)might fall into your lap. 

Here’s how to tell if building a new construction home isfor you:

You’ll love it if:

• You want customization  
• You don’t want to foot the bill for big-ticketmaintenance items upon move-in
• You want a home that meets current building codes, features acurrent design, and is made from energy-efficient materials
• You don’t want to compete with other homebuyers

You should leave it if:

• You need to move in right away or quickly
• You’re on a very tight budget

Buying an Existing Home

You don’t know what you like until you see it.That’s one of the greatest benefits of buying an existinghome. If you’ve done your research, you know exactly whatyou’re getting. You can see the home, touch it, and walkinside of it.  

However, there still may be issues you can’t see, which iswhy a home inspection is so important. An experienced home inspector can identifyproblems with the house before you buy it — and provideinsight that will help with upkeep after you do. 

Of course, there are more options for customization whenbuilding a new vs. buying an existing home. But you may be able toleverage the findings from the inspection to negotiate having thehomeowner make repairs or upgrades before you buy the house.Additionally, homeowners often make updates to their property justbefore putting it on the market. This could include buying newstainless steel appliances, adding a backsplash to the kitchen, orinstalling new wood floors. As a result, you may benefit from theserenovations without having to play a part in the process.

Lastly, unless it's afixer-upper, an existing home might be move-inready. The time it can take from looking for a new home to move-independs on a number of variables. Generally speaking, it can take afew days for the pre-approval process, several weeks to months tofind the right home and up to 45 days to close. You’ll beable to post a photo of your new home on Facebook in no time.  

You’ll love it if:

• You want to move in quickly
• You’re looking for a deal 
• You like seeing a finished product before you buy it

You should leave it if:

• You have a clear picture in your mind of the exact home youwant to buy — down to the detail — and haven’tfound it after looking for years
• You don’t like competing with other homebuyers
• You don’t want to deal with maintenance upon move-in

Whether you decide to build new or buy an existing home, makesure to do your research. You can also ask people you trust abouttheir own experiences, which can help you avoid costlymistakes.