The life-changing event of purchasing a new home can be both exciting and overwhelming.
I get this question consistently in my career as a REALTOR®.
“Should I Build A New House Or Buy An Existing One?”
I am living in my third home that I have purchased during my 40 years of home ownership. To some that may seem like a lot of houses, but I will bet that to others it may seem like I’ve just started.
The simple fact is we Americans move a lot… 7 or 10 times in a lifetime depending on whom you consult. Chances are you are going to purchase a house during quite a few of those moves and somewhere along the line you may have the opportunity to build a new home.
Should you build a new home?
Everyone has fantasized at some point about his or her dream house. You may want closets big enough to live in; a bathroom that doubles as a spa; a kitchen in which you could produce programs for the Food Network.
But, as in most fantasies, there is usually some epic journey required to achieve the goal. And building your dream house follows that plot line all too closely.
But isn’t it the dream that makes the quest worthwhile?
Yes, if you can weather the storms and battles along the way. And the determination to keep moving forward is usually a function of a strong will and a big heart. But it helps to use your head before you set off on your personal version of “The Lord of the Rings.”
“The Quest” for a new home.
It is likely that you have options when you begin the process of buying a home. There may be existing homes in the area that are affordable and that meet your needs. But there are always things about any property or house that don’t exactly meet with your approval.
In our area of the Rio Grande Valley, and in most of Texas, we do not have basements. But for those in other parts of the Country, the basement may not be finished.
The yard may be too small or the interior décor may have to be entirely redone. Finding a resale home that fits all of your requests in a home is virtually impossible. There will always be a compromise in someone’s want list.
Building new allows you to imagine, design and build the home that accommodates needs and amenities that are important to you… within a budget of course.
Will A New Home Cost More Than A Resale Home?
And that is one thing that must be considered.
A new home will be more expensive, on a cost per foot basis, than an existing one. That is due to the cost of land, the price of building materials and labor expense. You might also find that taxes are high as a new area is developed and the municipal authorities factor in the required infrastructure for a growing population and the need for services like education, law enforcement and recreation. You may find yourself subsidizing some of these costs as an area develops.
The ongoing costs associated with an existing house are more predictable. However, with an existing home there will likely be more maintenance expense than for a new house and energy costs tend to be higher with older properties because newer homes are more energy efficient.
Take control of your home’s temperature and acoustics by ensuring your contractor insulates with the correct R-value for your region.
Windows are often the largest single source of heat loss and heat gain in a home. Select vinyl windows with low-E glass and a high-performance glazing system that reduces heat transmission through the glass.
Prospective home buyers can save themselves from headaches by working with their builder on these useful construction do’s and don’ts:
Help prevent mold before it starts. Ask your builder to use vapor retarders in addition to insulation in your home’s walls. This helps prevent the growth of mold and mildew. Other vapor retarders can trap moisture in your walls, creating an environment that supports mold growth.
Think of the long term costs of buying a new home.
Commuting costs may be an issue. Developers must go further and further out to find enough land to accommodate a new subdivision. That may mean higher costs for commuting to work and to access other businesses and venues that may be closer to the nearest major population center. You should consider this from both a monetary perspective and to determine if you are comfortable with an additional investment of time.
If your new house is built in a subdivision there may be ongoing fees required. In addition, there may be covenants that are designed to protect property values that may apply serious restrictions on your ability to enhance your home and/or your property down the road.
A new home needs new landscaping. This may be included in the price of the home but there will likely be a limit to what is covered under the agreement. To landscape the property in a way that is truly satisfying may require an additional outlay.
Delays, Noise, and Price Values.
Beware of construction delays! Building contractors are sometimes hindered by the weather. Many times deadlines are missed and this does create problems with promises Builders can’t keep. Make sure you do some thorough research about the builder and his track record before you commit. Weather is always unpredictable and will have an effect but that should be factored in from the start.
A new subdivision can be a hornet’s nest of building activity. If you move into your home early in the process be prepared for hammering, sawing, trucks, mud and general chaos for quite a while as the subdivision progresses. This is a lifestyle issue and is a temporary inconvenience. But some have found this level of activity disconcerting and disruptive especially when they are settling into their “dream home” and trying to savor the experience.
If you build new be prepared to stay for a while. With new construction all around you it would be difficult to compete with the rest of the properties available for others who want to build a house from the ground up. You would have to make it worth their while and that usually means a compromise in price.
All this being said (and trust me there is more that could be said) there is nothing quite as satisfying as showcasing the house to family and friends that you designed and built and that reflects your unique vision and personality. If you survive the journey, you will likely have turned your fantasy into reality.
There is a saying in the Real Estate Industry. “Building a new home is the greatest test of a couple’s strength in their marriage.” This comes from the fact that building a new home demands so many decisions from the new owners. There will be a huge demand on two people agreeing on so many details, that it will stress any relationship. If you think disagreements are rare in your relationship now, then be aware that being the new owners of construction from the ground up will be challenging.
It will be tough, but SO WORTH IT!
Where to start? Contact me for a list of New Home Builders in the Hidalgo County area. If you live in another part of the Country, start with your local agent that works with Builders and knows their quality of construction.
Remember to always have an agent represent your interests and work for you. If you need to talk to me about representation, I would be honored to have a free consultation with you.
The builder pays my fee, and you get representation.
With that I hope that this article was valuable to you.
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