To Buy or Build Your Home, That is The Question
Making the decision of owning your own home can be one of the most important decisions you make. Feeling ready to initiate the next chapter of your life and become a homeowner, but not exactly sure if buying or building is the best route for you? With so many pros and cons to each, it can be nerve wracking to come up with the right conclusion on your own.
From budgeting your money to find the right place, to allocating the right amount of time to the pursuit of the ideal space, there are a lot of factors that can influence this process. On the one hand, building your own home can cost you about 10-15% more per square foot, according to Home Advisor. On the other, finding the right home may require entering a bidding war, and incur unexpected costs involving home inspection and renovation. So how do you know which is right for you?
Especially if you are coming into this as a new homeowner, there’s a whole lot to consider. Let’s go over the key points to each option, so that you can come to your own conclusions and make the decision that’s best for you.
Pros and cons to building versus buying your home
Benefits of building a home
- You have full autonomy over what your home will look like. Starting off with a completely blank slate, you are in charge of designing the floorplan, choosing the materials, and every little detail that involves designing the house of your dreams.
- You do not have to worry about entering into ravenous bidding wars with other buyers. Not having to engage in tiresome back and forth negotiations, with no guarantee of success, can alleviate a lot of the stress that goes into acquiring a new home.
- Building your home grants you the freedom to build a home centered on sustainability. While this may result in higher costs upfront, it can save you thousands of dollars in energy bills, while also being better for the environment.
What to consider when building your own home
- Sticking to your budget is probably one of the biggest challenges you will face when building your home. From acquiring all the right building permits, approval of the floor plan, to adhering to state guidelines, there is a lot that goes into building a home.
- The amount of time you want to spend on building your home is probably the second biggest factor to think about. As the property owner, it is worth looking into the differences between going with a prefabricated home, a modular home, or a custom-built home. The first two options can take between 90 to 120 days to complete, while the third can take anywhere from 1 to 2 years.
Benefits of buying a home
- Save big on any major costs surrounding home building. No need to worry about expensive building permits, costly general contractors, and paying for what might feel like endless lists of building supplies.
- No need to worry about when you will be able to actually wake up under your own roof. Being able to just close the purchase and move in can be such a blessing. If you decide to do any touch ups to the property, you can do this in your own time as well.
What to consider when buying a home
- Make sure you have a thorough understanding of all current state of every major aspect of the house to avoid any hidden costs.
- In the case of entering a bidding war, know how much you are willing to pay, and when to back out. Bidding wars can be stressful, so keep in mind that there will always be more properties out there, and that you may find an even better option by not staying too attached to any one piece of real estate.
At the end of the day, there is no right or wrong decision between buying or building a home. There is only what works best for you. With time and money being your two biggest determining factors, make sure you do your research so that you can invest in the best option that works with both your watch and your wallet.