Buy or build? That is the question many folks have when considering the possibilities for their new dream homes. So what factors should you consider when weighing this decision? Let’s look at some of the top pluses and minuses of each.
Building a Home
- Pro: Newness. Beyond the joyous feeling of stepping into an untouched space that’s all yours, there are practicalities to consider. A brand new home means a new roof, new plumbing — new everything that won’t need repairs for a long while.
- Pro: Customizable. Whether you go semi-custom with some design say or full custom for total control, building a home means you have a hand in creating the exact place you want to call yours.
- Pro: No bidding. With strains on supply and high demand, bidding wars are common in today’s housing market. Which can be costly if you win and disheartening if you lose. You can steer clear of all of that by building.
- Con: Cost. Building a new home is often more expensive than buying an existing comparable one, and that’s usually the case in the DFW market. But not always. In some cases, it could be cheaper to build a home.
- Con: Time. Be prepared to wait if you’re building a home; the most recent U.S. Census data estimates that it takes an average of almost twelve months to complete a new construction home from start to finish.
Buying a Home
- Pro: Speed. Compared to building, buying an existing home is usually an expedited process. The mortgage software leader Ellie Mae Inc. calculates that it takes an average of 47 days to close on a home with a standard mortgage. But 30 days or even less isn’t unheard of.
- Pro: Location. While new construction is limited by available land, buying an existing home gives you the freedom to live just about anywhere you like.
- Pro: Upgradable. Renovations on a brand new home are almost unthinkable, but lots of people buy existing homes with changes in mind. This may run from a full revamp of a fixer-upper to renovations such as a new kitchen to improve both the use and the value of your new home.
- Con: Unexpected costs. A pipe could burst. A foundation could crack. Even after a home for sale passes a scrutinizing inspection, needed repairs and maintenance are likely down the road.
Whether you choose a loan tailored to construction or from a range of Texas mortgage programs for existing homes, First United is here to help with the financing. Call us today at (972) 591-3097 or contact us online.