Should I Build a Custom Home or Buy a Pre-Owned Home?

Should I Build a Custom Home or Buy a Pre-Owned Home?

What are the benefits and drawbacks of buying a pre-owned home?

• You can move in as soon as you’ve signed on the dotted line and the previous owner has moved out. If you’re starting a new job or don’t fancy waiting for builders to craft your dream home, purchasing a pre-owned home may be the more practical option.
• If you want to live in the center of a busy city or town, you’ll likely need to purchase a pre-owned home.
• Older houses sometimes come with charming period features.
• You can move into a well-integrated neighborhood and an established school district.
• You may be able to add value to the home with cosmetic upgrades and renovations.

• You may end up spending weeks – or even months – trawling real estate listings without finding a home that suits your preferences.
• Recently renovated properties may be more expensive compared to new builds.
• Purchasing a pre-owned home is a competitive game. You may need to produce a very high offer if your desired home is popular with other prospective buyers.
• The home may contain issues you failed to notice before the purchase. For example, problems with your roof or heating system could cost thousands in repairs.
• The home’s design will not be personalized to your tastes and requirements.
• Older homes tend to be less energy-efficient than new builds, meaning you’ll pay high utility bills.

Assessing your financial situation before making a decision

Researching local real estate markets to find the best deal

• Population and job prospects
• Rental property trends
• Quality of life rankings in your desired area
• Average property prices in your desired area
• Neighborhood quality and nearby amenities

Weighing the pros and cons of building a custom home

• You can craft a floor plan around your needs. Whether you’re looking for a large, open-plan living space or smaller rooms for increased privacy, you can call the shots with a custom build.
• You can have as much influence over your exterior and interior designs as you like. If you want lots of creative agency, your builders will work with you to select finishes, features, and fixtures. However, if you’re very busy or unsure about what will work, you’re free to leave certain decisions up to your contractors.
• Your home will be fitted with the most energy-efficient appliances, structures, and fittings to lower your energy bills and reduce your carbon footprint.
• The maintenance costs of new homes tend to be lower than pre-owned buildings. If you’re a first-time buyer, you’ll certainly appreciate having fewer repair bills.
• You’ll likely have warranties on parts of the home, such as plumbing and electrical systems, appliances, and certain building materials.
• You can install smart features, such as cutting-edge thermostats, locking systems, lighting arrangements, and more.
• You can control the budget by tracking your spending closely. Plus, you won’t be outpriced by other buyers.

• You’ll need to pay higher upfront expenses than you would with a pre-owned home.
• You’ll need to wait for your contractors to build the home before you can move in. Most homes take at least four months to complete.
• You may have to compromise on location, as you’ll need to build on fresh land. As such, you may need to travel further to get to work or local amenities.

Getting creative with financing options for building your dream home

• Sell your existing home and move into temporary rented accommodation while building takes place.
• Explore your financing options, including construction mortgages and self-build loans. You may need to do your homework before meeting a lender. Prepare to show them a construction timeline, carefully estimated costs, and details about the house.
• Plan for things to go wrong by setting aside some emergency money. You never know when you might need it!

Seeking professional advice from trusted professionals in the field