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Pros and Cons of Building a Home

Have you ever had your home built? Or have you only purchased existing homes? If you want to build your own home, you have options. Lots of them. If you want to have lots of choices and options, but not have to make every decision, purchasing a new construction home in a master-planned community may be perfect for you. You can choose the lot and floor plan that work for you, and then have input on colors, design choices, and more. The other option is to start completely from scratch including finding the lot, hiring an architect to draw up plans, hiring contractors, making all of the design choices, and so much more.


If you are considering building your own home, there are pros and cons that you should be aware of before you start the process. This can help you decide if it is right for you and taper your expectations should you decide to move forward with building your own home.


Pros of Building a Home

  1. It Can Be Whatever You Want: You start with a completely blank slate (especially when going completely custom) and you can add in rooms, designs, features, and more exactly to your liking and specification. Two important things to consider from the very beginning - make sure you hire a great builder from the start, and stick to your budget (more on that later).

  2. You Can Build Almost Anywhere You Want: If you're building your own home, you have the option to look for land wherever your heart and budget take you. Before buying land, it is critical to get your builder's input on the feasibility and cost of building on that particular plot of land.

  3. New Homes Typically Have Less Maintenance: With everything being new, more energy-efficient, and having the latest technology, new homes typically come with less maintenance and less concern about appliances, home systems, and more breaking. There is no such thing as a maintenance-free home - every home comes with some maintenance, like yard upkeep.

Cons of Building a Home

  1. Building a Home Typically Costs More than Buying an Existing Home: Talking with your builder about cost is critical. It is also recommended you budget more than you think. The factors that most impact cost are materials, size, location, complexity, and design elements.

  2. Construction Loans Can Be Complicated: Construction loans are considered high-risk, so a 20% down payment is required. According to a realtor.com article, "Along with the usual financial documents needed for your loan application, you need to provide project plans, costs, and land value. You also need a signed contract or purchase contract with the project’s plans, specs, and budget details, and a timeline for the construction." In addition, construction loans are usually shorter term and can have higher interest rates than a traditional mortgage. The good news is after the home is completed, you can either pay the loan off or convert it to a conventional mortgage.

  3. Building a Home Takes Time: Generally, the larger and more complicated the build, the longer it will take. Additionally, delays are very common, so having flexibility is key.



Source:


https://www.realtor.com/advice/buy/how-to-get-started-building-your-own-home/?identityID=5b61da44b0162aca25000040&MID=2021_0413_NL_Multi_Article&RID=5526101382&cid=eml_promo_Marketing_NonPRSL_MultiArticleNL_cons.12650302_2021_0413_NL_Multi_Article-article5-blogs_buy

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