Benefits of Building a new home
A home is usually the single largest investment that a person makes. Most buyers end up spending lots of time and energy either searching for or designing "the perfect home" before signing any contracts. Location, price, market trends, property taxes, homeowners association fees and the condition of the property are factored into the house hunt. Also, each buyer typically has a wish list that includes specific needs (the things the buyer absolutely have to have) and wants (the features the buyer would like, but could do without if necessary). While the home-buying process involves a number of important choices, one of the very first decisions buyers need to make is whether to shop for an existing home or build a new one. Each path has its advantages and disadvantages. Here's a look at both sides.
Buying an Existing Home
There are two primary advantages to buying an existing home: convenience and cost. Once you are pre-approved by your lender, you can shop around, pick out a home and make an offer. A qualified real estate agent can streamline the process by helping you find appropriate properties, guiding you through negotiations and assisting with the paperwork. Once your offer is accepted, you may be able to close and move in within a month or two.
Even though the process involves numerous steps – such as financing, viewing homes, making offers, home inspections and closing – the convenience of being able to move in right away is compelling enough for many people to choose an existing home over a build. This may be especially true for buyers on a tight schedule, such as those relocating for a new job or whose children will be starting at a new school.
Then there's cost: In many (but not all) cases it is cheaper to buy an existing home according to data compiled by the National Association of Home Builders. Once you've found a prospective, existing home, use a mortgage calculator to get a better estimate of the total cost of purchasing that home based on today's interest rates. Depending on your target real estate market, prices for existing homes may still be quite favorable in the aftermath of the financial crisis and housing bust that significantly lowered real estate prices across the nation