Buying Vs. Building

Building Vs. Buying

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Getting a new home, in itself, takes a lot of time and is a lot to think about. Then you have the option to purchase an existing home or build a new one. Which is the best option? Which costs more? In today’s real estate market existing homes prices are becoming competitive to building a new home for many reasons. Many people get caught up in the idea that building homes will be more expensive when they are told by an agent that an existing home is a better value. So what should you do?

Our new home!

When looking at existing homes you need to look at all the potential issues you already have, and what issues are going to arise in the future. The lack of existing homes on the market is driving up their values making them more expensive regardless. Thus, making the argument about cost differences useless. Things that could make purchasing an existing home more costly down the road are, age of mechanicals, appliances, roof etc. When something can go wrong, it will. As soon as the home owner is in possession of the keys, if the air conditioning goes out, or pipes bust, it is now your problem. When a buyer has saved and put away money to cover the down payment, closing cost, and new home essentials, they are not going to be happy about having to shell out more money for repairs. Whereas, with new construction everything is covered and under warranty from the mechanicals, plumbing, appliances, electrical and structure of the home. One call and you can have someone out to your home and doing the repairs at no cost to you.

Basement in progress!

When clients walk through an existing home they are thinking about what changes they want to make to better suit their needs, and without a contractor there to see the project then there is no way of knowing if what you want to do is even possible or how much you will have to spend. “I always say, once you tear down an existing wall, this is when the truth comes out”. Has the home aged well? Or did you just find a leak that has been tearing away at the inside of the wall for years.

In relation to this, my girlfriend and I recently purchased our first home. Built in 1984, had age, but character. The home was flipped and
renovated sometime in the recent past. However, we’ve decided to finish half of our basement. Recently we have been overwhelmed with everything that goes into purchasing a home and renovations. While we have enjoyed becoming homeowners for the first time, it also came with a lot of stress unknowns. That is part of the adventure. Being an architecture student, it has help me to visualize a project from start to finish. Looking ahead, I think its is save to say we will buy purchasing land and building a house to our standards/preferences.

“Why Build vs Buy Existing from a Real Estate Agent's Perspective.” Home Builder MN | Woodbury, Eagan, Lake Elmo, Hastings, 26 Oct. 2017, www.michaelleeinc.com/build-new-vs-buying-existing-home-real-estate-agents-perspective/.