There comes a time in every renter’s or homeowner’s life when they realize it’s time to make a change. Lack of space, subpar location and life-changing personal events are all valid reasons to re-evaluate your living situation. When you’re ready to move into a new living space, should you build or buy your next home? Every individual case is different.
Keep reading to learn more about some pros and cons of buying and building so you can make a decision that reflects your financial situation and your future aspirations. There’s a lot to consider, from a homeowners insurance quotes comparison to mortgage, timeframe, renovation costs, and more! Researching the costs of building versus buying your next home can help you make a decision that works for years to come. CoverHound is here to help you protect your home, whether you opt for a custom build or move into an older home.
Building a Home
If you’re someone who has a very specific idea of what you want—down to the matching walk-in closets in the master bedroom and the custom-built movie theater in the living room—then you may be leaning toward breaking ground with new construction. Building a custom home allows for flexibility in your vision, and even choosing a tract home provides some wiggle room on personalizing the design. According to the U.S. News & World Report, “new homes also have the most up-to-date technology and building materials. They are more energy-efficient than older homes, which helps keep electric bills low.”
Building a new home may prevent classic “dream house turned nightmare” scenarios, like this case of a leaking oil tank outlined in This Old House. Though a home inspection turned up a “slight leak,” the proud new owners of a Dutch Colonial Revival house couldn’t have known that oil had seeped under their neighbor’s home, thus voiding their homeowners insurance coverage. Eventually the buyers made it work, but it took years of back-and-forth, hefty legal fees, and a completely new basement. Some homeowners simply don’t want to risk outdated systems leading to headaches down the line, and want to build a new dwelling.
Buying a Home
Horror stories aside, buying a home can be a rewarding, efficient and cost-effective experience! According to Census, the median sales price for a new home was $312,900 for January 2017. The median existing-home price for the same period was $228,900, per the National Association of Realtors. First-time homeowners or growing families may simply not have the funds to shell out for a brand-new home when they can get a better deal on an existing structure.
Besides paying less, here are some top reasons why people prefer existing homes, according to Trulia:
− To have traditional features (like original wood floors, woodwork, stained glass, etc.)
− To live in an established neighborhood of older homes
− To live in a home that has history
− To undertake remodeling and home-improvement projects
Building or buying your next home is a decision you will have to live with for years to come. Protect your new or new-to-you home with a homeowners insurance quotes comparison that narrows down the best coverage for your needs. Happy house hunting!