If you’re thinking about a new home, you have options, buy an existing home or build a new semi-custom or fully customized home from a builder. There are benefits to all choices, and deciding which one is right for you will be a personal journey. However, before you start this journey, it would be a good idea to talk to the folks at Revere homes. No matter what you decide, talking to the professionals at Revere Home is going to give you insight and knowledge that will be invaluable to you during this process. Talk to them and let their experience be a guide for your home buying journey.
Home prices are going up everywhere. Utah is currently ranked number three in the US for annual appreciation. In the Salt Lake Metro area, home prices rose 15.9% over the past year, and that looks to be a trend that will continue to grow. According to the National Association of Home Builders, the average price for building a new home is $485,128. According to the Department of Housing and Urban Development (HUD), the average cost for a single-family home that already exists is $408,800.
Houses are getting harder and harder to come by, with most homes staying on the market for no more than twenty days tops. Buying or building is not going to be cheap so, knowing which is best for you and your family, as well as the future of both, is essential. Here are some thoughts on buying an existing home or building a new, semi-custom home that will help you decide.
If you’ve already decided that the route you want to take is building a semi-custom home, contact Revere Homes. They have a number of floorplans that will surely fit your needs and dreams. Building a home is best when you work with an experienced builder who will listen and help guide you through the process. You’ll want to trust your future to a home builder that knows the area and can provide you with answers to all your question. If you’re building, contact Revere Homes.
If you’re still in the decision-making phase, here are some new home-building pros and cons.
Customization
When building a new home from scratch, you’ll have the advantage of some serious customization choices. These will be choices in personalized details that fit your life and your specific tastes. You’re looking at ground up options that include floor plans to flooring and cabinets, lights, fixtures, even doorknobs, and paint colors. Building a home is a complete expression of you. That can be exciting because you know your home is going to be unique and special.
Competition
In Utah, as it is all over the country, the housing market is highly competitive. People are paying thousands over asking price just to secure a home. Finding a house is difficult, and the demand is causing prices to soar. However, if you own the land you’re looking to build on, or the land is part of the building package, then you’ve effectively neutralized the competition.
Low Maintenance
New homes are built to meet the most up-to-date building codes and have state-of-the-art technology. If you build a new home, you’re most likely not going to have to deal with significant repairs or outrageous maintenance issues for a while. So, you won’t worry about fixing a roof or faulty HVAC systems right away, which will mean saving money and giving you time to prepare for when or if those issues do arise. Additionally, many builders provide a limited warranty if something does break.
Energy Efficiency
A new home built just for you will feature the latest in energy-efficient systems as well as building materials. In the long run, this means lower energy bills. And, as a bonus, you’ll have a more eco-friendly dwelling that you can feel good about.
It’s New
Now, this may seem obvious but, think about it for a moment. A house that has never been lived in, no pencil marks on the doorways, and no appliances have been used and worn. This is a blank slate on which you and your family can write their history fresh and new. Don’t underestimate the wonders of creating your life anew in a home built just for you.
Price
We’ve shown you the numbers with national averages, and there is no doubt that building a new home will cost more than buying an existing house. However, if you know this going in and you’ve done your budget, then this may not be an issue at all.
Wait Time
On average, it takes about seven months to construct a new home. This timeline doesn’t include the planning and approvals phases. This presents a few issues, the biggest being the gap in living situations between when you sell your existing home and entirely moving into your newly built home. So, you’ll need to budget the cost of renting until you can move into the newly built home.
There will most likely be storage costs as well as you’re not going to want to move everything into a temporary home and then move again into your newly built home.
This in-between time can be a bit disruptive; however, if you’re aware of it beforehand and you can make good plans on how to get through it, chances are moving into a brand new home will be worth the hiccups along the way.
Negotiating Price
Homebuyers usually go into the process with the idea that they’ll be able to negotiate, or their realtor will be able to negotiate for a better price. Find some wiggle room, some things to knock the price down. This isn’t usually the case when building a new home. There isn’t a ton of leeway regarding closing costs or purchase price when dealing with a home builder.
Hidden Costs
You’ll see the cost of standard items like countertops, fixtures, and appliances; those are going to be transparent when you’re working with a reliable builder. However, keep an eye open for upgrade costs or costs to changes in things. Those may not be as transparent, and they could add up. Also, you’ll want to be sure to budget for post-move costs such as landscaping. Some hidden costs could quickly sneak up on you and blow your budget.
Cost
As we have seen through national averages information, the cost of buying an existing home is going to be less than building a home. Those costs will vary again depending on where in the United States you’re buying and where within the city you’re looking to live.
However, once you’ve been approved for financing, you’ll know your budget so you can streamline the process and spend time looking only at houses that fit within your budget. All numbers are out in the open once the purchase price is agreed upon, making it much easier to plan financially. The lower cost of purchasing an existing home is attractive to buyers, especially first-time buyers.
Convenience
When you buy an existing home, chances are you’ll be able to move in within a month, maybe two tops. Finding the perfect house to meet all your needs and wants might take a little time; however, once you’ve found it and your offer is accepted, it won’t take long before you’re settled in.
Landscaping
The landscaping situation will depend on the attentiveness of the previous owner, of course. However, most times, as a seller is trying to put his best foot or yard forward, you can count on having the landscaping already in place and in good working order. Maybe you’ll want to change or adjust things but, you’re not starting from scratch, and that is going to save you time, money, and effort.
Nothing is Perfect
You may get lucky in your home shopping and find everything you need. But, chances of that are slim, so when buying an existing home, you’ve got to be prepared to make compromises. A good idea is to make a list before you start shopping, so you know what you’re willing to give a little on and what things are complete deal-breakers. Be clear when heading out, know what you’re just not willing to compromise on, and this will help you avoid some ill feelings when you do purchase an existing home. Stay firm in what you want, it may take time, but you’ll find it.
Remodeling
This will depend on the state of the house you’re purchasing and what you’ve had to compromise when buying. You may want to or have to do some remodeling to get the home exactly how you want it. Big task or small, as a buyer, you’ll want to factor in remodeling costs when you’re looking at purchasing an existing home. Some things you may be able to push off for a while, but other things you may want to address immediately after moving in. Make sure you’re budgeting for it.
Underlying Issues
This will hinge on the age of the house you’re buying and how well the previous owners maintained it. There are chances some unforeseen issues may arise down the road that you’ll have to deal with. They could be anything from cracks in the foundation, roof problems, or even plumbing problems. An older house may have more problems; you really have no idea. The best you can do is know that eventually, you will have to face these problems and make sure you’re ready financially and emotionally. If you’re prepared, then you won’t be taken by surprise, and you’ll be better able to handle the problems when they arise.
There are pros and cons to both situations; however, the reality is that a con may not be a con at all; it depends on your situation.
Decide before you make any serious financial decisions. Do you want to build a home from the ground up with an experienced builder like Revere Homes, or are you looking for an existing home with some life-lived and older bones? It all depends on what you want now, in the future, and what suits your lifestyle and family best.
Buying a home is an important life choice, and it is certainly not one size fits all. Talk to people who have done both, purchased a newly built home, and ones who have purchased an existing home. Do your financial homework, make your must-have lists and take the time to make the best-informed decision for yourself. There will be a lot of information and advice coming your way from friends and professionals. Be clear in what you’re looking for, and ultimately, you’ll make the best choice for yourself.
Imagine a pristine home, never before dwelt in, where you create all the memories, all the pencil marks on the walls, all the laughter, and life that fills the rooms is yours alone. At Revere Homes, we pride ourselves on being experienced, creative, detail-driven home builders that listen and care about the people we’re building a new home for. From floor plans to finishes, you get to personalize and customize your home to suit you and your family. Ready to make your dream home a reality? Contact us today to get started.
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