I hear it from buyers all the time, “For that price, I should just build my own dream house!” Maybe you should. But building a house comes with its own set of woes that may not be suitable for your current situation. Let’s take a look at some of the pros and cons of building a house.
- The number one reason for building a house is so that you get exactly what you want from a house: floorplan, number of bedrooms, architectural style and design… right down to each and every last finish.
- Because the house is new, it will have met all the latest building and safety codes so as an owner, you can be less concerned about the foundation, pipes, wiring, etc. Plus, you will get brand new appliances and not be so concerned with having to make repairs to an older home.
- In certain markets and scenarios, building a house can be cost effective but it requires the owner to be fastidious with the budgeting and accounting.
- There are a number of additional costs that need to be factored in, i.e. the carrying cost of the land during the construction, the construction loan, rent for the current abode, and more.
- Very few construction projects are completed within the proposed timeline. Plus, there are issues that come up that are beyond your control, such as delays in city inspections or permitting. When the project is delayed, it costs you money and, most likely, stress.
- Can you wait 18 months or 2 years for your dream house? Will your needs and wants have changed in that timeframe?
- Chances are, you work and have a family. Building a house is an enormous strain on your time. Do you have the time or the patience to select all the finishes? Even if you hire a designer to help with those decisions, the designer will still need to meet with you to obtain your approval. What if you and your spouse don’t agree on fixtures and details? Can your family bear the anxiety and stress that comes with managing a construction project?
Now, buying a house is a relative cake walk to building especially if you’ve put together a good team of people to help with the purchase, i.e. your Realtor, your mortgage broker, lender, etc. The issue is that you are stuck selecting in current inventory and generally, every house has flaws that you can’t quite reconcile. And truth be told, a pre-existing house will never be 100% your taste or vision, so you are likely to embark on a construction project of some type even if you buy. Then there’s the frequent issue of not being able to remodel to your liking because of HOA regulations and restrictions or dilemmas presented by the home’s original structural engineering. All these scenarios are likely when it comes to buying an existing house.
So should you buy or build? It just depends on… you.