Building a Home vs Buying a Home: which is the better option in todays real estate market?

Buying or building a home, several considerations apply to both. The financial aspect certainly takes precedence over the emotional one. But, when analyzing this decision and its intricacies, it pays to take into account both what makes sense economically and what feels right to you.

Purchasing a home already in existence is the quickest and surely the easiest option. From a practical standpoint, you should hire an inspector to review the building’s structure and any major amenities, such as HVAC, plumbing, electrical systems and appliances. This process helps nail down any potential costs you may face after purchase. Of course, this relies heavily on the seller’s truthfulness and disclosure of the condition of the home.

Constructing a home is without a doubt more complex and longer than simply riding a wave of previous investments. Strict deadlines for completion need to be honored or else the costs can easily spin out of control. It’s important to weigh whether the freedom to customize and create your dream home is worth the headaches and hustle involved. It’s not as simple as it looks on HGTV, and fighting city planners and contractors can become tedious.

Closing costs, down-payments and taxes are nearly always negotiable with pre-existing homes. If the pool of inventory is low and the real estate market is favoring buyers, you too might have the upper hand in negotiations. Alternatively, if the market is hot, you may be competing with many others, possibly more than the home is worth.

Building a home can also be a great way to save money by controlling an estimable bottom line. You have control over your materials, if you’re willing to take on the efforts of researching, finding and obtaining them yourself, thus having the ability to cut costs. People increasingly choose to build now, too, because of the most recent advances in green home construction that not only improve efficiency, but also reduce cost and make rooms more enjoyable.

Purchase options are no longer a mystery, but it’s important to note that the process of building a home is much less common. To get the most out of the experience, you will want to thoroughly research existing codes and regulations, including zoning requirements, permitting processes and proper materials for the conditions. You will want to ensure that you or your builder has access to optimal and quality subcontractors that meet the expectations of any required inspections.

When budgeting for a new home, one must consider estimated living expenses over 5 to 10 years: energy costs, insurance, property taxes, land improvements, mortgage expenses and various extras. With all of these elements combined, you’ll have a better idea of whether building a home or buying one is right for you. 

Nobody can deny that energy efficiency and living green are important considerations in today’s market. Advancements such as solar panels, more efficient appliances, and dual-pane windows have made building and customizing one’s own home attractive. Because of this big change in trend, green build components and cost of construction must also be taken into consideration when determining the ideal home buying approach.

The goal of any renovation or construction project should be to enhance the environment and the lifestyle of its occupants. No matter what option you decide on, it’s always best to look for ways to improve the energy efficiency of your home. Besides its physical appearance, the most important aspect of a home is how it functions regarding overall comfort and air quality.

Finding a happy medium between cost-effectiveness and quality is another key consideration. It’s important to do your homework when it comes to products and prices. The saying, “you get what you pay for” certainly applies to establishing a secure and comfortable home. It’s important to note that not all renovations or construction projects increase the value of your home. 

Secondary rooms such as home offices, extra bathrooms, or entertainment centers do not necessarily influence a home’s value, so it’s best to ensure that the location of the home is favourable enough that these amenities won’t be wasted investments.

Style is also a consideration when making the decision to buy a home versus build one. Building a custom home allows you to design the home’s exterior and interior. If you have a strong set of skills and a functional budget, it’s possible to make a truly unique home that stands out among the others. It also offers a chance to add fringe features like decks, garages, and landscaping. 

From cupboards to woodworking, budgeting, and flooring, when building a home there are countless features to be considered. Making the decision to design and create a unique, custom home is a great goal to strive for, however, it takes patience and the ability to be flexible with any unexpected setbacks that may arise.

The good thing about buying an existing home is that you don’t have to tackle all of these elements by yourself. You don’t need to understand the codes, hire workers, or buy or rent heavy machinery or tools; these tasks are for professionals. With a pre-existing home, those big ticket items such as exterior and interior finishes are essentially done for you, and effort only needs to be put towards small renovations or decoration.

Energy efficiency, styling, cost and convenience are all elements to consider when choosing between building and buying a home in today’s real estate market. Are you practical and budget-minded, or do you have the luxury of spending freely on aesthetics? Do you prefer a custom home opened to endless possibilities with the coordination of many professionals and your own hands, or do you favour the simple solution of purchasing a pre-existing home?