When it comes to finding a new home, you have two options; buy or build. Each has its unique advantages, but also some drawbacks. The option you choose will be based on various criteria ranging from market conditions, your timeframe, and personal preferences. Let’s take a closer look at the benefits and drawbacks of each home buying option.

The Benefits of Buying a House

The more typical option is to shop for existing homes on the market. This way, you avoid the details, management, and time commitment of construction. Purchasing a home also tends to be less expensive as down payment requirements and interest rates tend to be lower for a mortgage as opposed to a construction loan. Another benefit is that subdivisions and other existing homes are typically strategically located around convenient, developed areas with schools, shopping, and other infrastructure.

The Benefits of Building a House

When you decide to build a new house, you have a blank canvas, meaning you have complete control to make any customizations. Other benefits of building a new home may include less maintenance going forward, hopefully some energy savings and efficiencies, and no toxic materials. The experience may also be less stressful because once you buy the piece of land you aren’t dealing with other competing buyers.

The Drawbacks of Buying an Existing Home

Aggressive markets, open houses, bidding wars, and tense negotiations are all par for the course when it comes to shopping for an existing home. These days, it is not necessarily going to be easier to buy than to build. Additionally, since you are looking at pre-existing options you may have to compromise on home style or other design features. Once your offer has been accepted on a home, it is always important to do your due diligence during the inspection period. Depending on the age and wear of the house and appliances you may run into maintenance issues or potentially hazardous materials.

The Drawbacks of Building a New Home

While building a new home affords you all of the customizations and design features you could imagine, it does take a lot more time, effort, and typically money to build. Loans to finance the construction may be harder to obtain and typically have different collateral or down payment requirements compared to a traditional mortgage. Unexpected costs and delays may also be a concern, from the price of building materials to labor shortages or other unforeseen problems; there are more variables to consider when building.

Whether you are buying or building, the home shopping process begins with the right financing. If you are in the market to buy an existing home, the expert team of loan officers at Standard Mortgage (NMLS#: 44912) is here to help. Standard Mortgage offers a variety of loan products to help you with buying that dream home.