Should I Buy a New Home or Should I Build One?

Posted by MoneyThinker in mortgage, real estate | 1 comment

I’ve been thinking a lot about houses lately, probably because I’m considering buying a house within the next couple of years.  And, with buying a home there’s a whole bunch of things that need to be considered: Where do you want to live? When are you moving? What can I afford? Here’s a question that has crossed my mind and probably the mind of so many other people: Should I just buy a home outright- or should I consider building my own?

Now, there are some obvious questions you should ask yourself when you consider whether you should build your home or if you should buy one outright. Use this as a guide to help you figure out the answer to that question.

-          How soon do I have to move? If the need to move is urgent, you may want to consider just buying a home. Your lease runs out in 2 months? There is no way that you are going to get a house built in that amount of time. But, if you are currently in a situation where you could stay where you’re at for awhile during the time that the house is going up, maybe building could be a potential option.

-          How much do I know about construction? If you’re a total idiot about building things, why are you considering building a house anyway? If you or your family members and friends know about construction, wiring, plumbing, and all of the other things that you need to put into a home, then you  may be able to pull it off for a lot less than you would have just buying an already built home. Best part? You get to customize it exactly how you want it!

-          What are land prices like? Oh right. To build, you have to have the land to build on. That’s usually a plus. Never fear! There’s lots of ways to research land, and a real estate agent can assist you in seeing whether or not buying land and building is a great idea with the current prices of land in your area.

-          Personal Contractor? In my area, I know several men who own contracting companies. Going to a personal contractor and getting a quote and a plan together can save you a lot of time, money, and headache in the future, and it’s a good comparison point.

-          Can I get financing? This is a good question to ask whether you are buying or building: make sure you can get the money to do so first.

-          What are the local laws and policies? Building policies and laws are extensive and strict. You have to adhere to codes and make sure that everything is in order before you can live in the home you are building. You may want to figure out if jumping through all of those hoops is worth it, or if you want to just buy a house that most likely already adhere to these regulations.

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