Should You Build if You Can’t Find What You Want on the Market?

With limited inventory on the market, some home buyers who have been shopping for a while may start to wonder if the only way to find the “right home” for their family is to build one. It can be frustrating to know exactly what you are looking for, but struggle to find it on the market, or lose-out because someone outbid your offer. But is building a home better than keeping up your search of pre-existing homes?

There are some pros and cons to building a home, so it pays to take everything into consideration before you decide to secure a builder and break ground.

The pros:

• Everything is new: Moving into an existing property can come with hidden costs, since you might need to do a number of renovations and upgrades to get the home that you really desire. Some of these renovations might not be entirely obvious while you are in the buying process. Something as simple as repainting the exterior, can cost you between $2,300 and $5,400 for the project.
  
  
• Your Personal Style: You help with the design of the home’s features-from kitchen cabinets to lighting, from carpets to ceiling fans, so everything is where and how you want it. You won’t have to spend additional funds remodeling the home after you purchase it.
  
  
• Added Savings: New appliances, your furnace, and central air simply function more efficiently when they are new. This can save you on energy bills, but also save you on unexpected repairs within the first few years of owning the home.
  
  
• Your Floorplan: Older home can have rooms that are very closed off and compartmentalized. Entertaining is easier in new homes because they often have an open floor plan that supports large groups. You can decide the floorplan that best suits your lifestyle and family. It can be quite expensive to change a floorplan in an existing home.

The cons:

• It Takes More Time: It can take anywhere from four months to seven months to build a home. Be certain that you have this time to spare. It may require moving into a month-to-month rental until your home is ready for you to move in.
  
  
• The Budget: Perhaps it is going to cost a bit more to build new rather than buy an existing home. This means you may have to make some compromises on the style of home you can build within your price range. You might also find that you need to make a lot of purchased upgrades from the builder in order to really get what you want, and those upgrades can really add up.
  
  
• Dealing with a Construction Loan and All the Permits: You might be required to carry the construction loan on the building process if the builder does not do this for you. Even if the builder handles the permits, it’s a good idea to understand what is needed to ensure everything is built up to code.

There is a resurgence in new homes that are under construction, so you might be able to find a builder who is marketing a whole development of new homes for you to choose from. This gives you more options in lot size and usually puts you in the hands of a qualified, experienced builder. Weigh your options and needs carefully. If the house-search is not turning up what you desire it may be time to consider building your new home.