Sell with full-service agents for as little as 1%.
One of the greatest assets that a person can have is a home. For those who are ready to make this type of investment, they have a lot of options and many decisions to be made. Many first time home buyers are interested in buying a brand new home. Which puts them in a position to have to make an important decision. Should they have their home built or should they buy a newly built home? The answer to this question is going to depend on a lot of personal circumstances as well as the pros and cons that come with both of them.
Having New Home Built
This is a big undertaking and it takes a lot of knowledge in order for it to be a complete success. If the homeowner wants to be proactive in the home build. There is always the option to just place this task in the hands of a new home builder. Although the majority of new homeowners like this want to ensure their wants and needs are met.
The Advantages and Disadvantages of the New Home Build
Before deciding on the new home build it is wise to become familiar with the pros and cons of this. There are a lot of preliminary decisions that have to be made before the construction even begins.
Everyone will have some idea as to what area they want to live in. Then it is a matter of determining whether there is land available in the area for new home construction. There is much more flexibility when it comes to choosing where one would like to live with a new home build.
Another big advantage is getting most of what the new homeowner wants. They can play an active role in the design of the home getting it close to their wants and needs. This allows them to plan for the future with their new home as well.
Overall it may be more expensive initially to have a custom home built. But in the long run, it can be cheaper. New technology can be used for the construction of the home which can bring in some major cost savings. These are applicable to utilities and energy saving. Plus the superior quality products used help to extend the longevity of the home and create fewer repairs.
If all of the criteria are met for financing a new home built many homebuyers find that they will have options when it comes to arranging the financing that is needed.
Although most contractors are pretty good at setting a time schedule for the new home build there are circumstances that can arise to delay the build that is out of their control. A move in delay can be hard financially on the new homeowner. Perhaps it will create extra costs for accommodation to fill in while the new home is completed.
It can be difficult to determine the actual cost of a new home build. Close estimates can be determined but there is usually a need for contingency funds to cover unforeseen costs. In addition, there are often hidden costs that may arise that the homeowner was not expecting.
There is a lot of extra decision making to be carried out with a custom home build. Many new homeowners find this to be too stressful.
Buying a New Home Build
Another option for the homeowner that wants a new home is to buy one that is in a new subdivision. This too comes with some pros and cons.
Cookie Cutter Style
Continuity is an advantage for some homeowners, especially when it comes to resale. The majority of the homes in a subdivision are basically all the same. This retains the continuity of the homes in the neighbourhood, which is important when it comes time to sell the home.
For some, the small property size is seen as an advantage. There is less time needed for maintenance and upkeep.
Some subdivisions have extra security measures built it which gives the homeowners a greater sense of security.
Many find that they have fewer decisions to make when it comes to buying a home in a new subdivision. The builder has set the terms as far as size, construction and costs are concerned.
Many of the homes that are built-in new subdivisions are made with quality and energy-efficient materials. This brings extra savings to the new build homeowner over a period of time.
When buying in a subdivision the prices of the homes are predetermined and usually there is not much room for negotiation when it comes to the selling price.
The add ons that are optional with many of these homes are nice to have but they can really escalate the mortgage which is felt when it comes time for the mortgage payments.
Trust is another factor that can be a bit scary. Homebuyers here have to rely on the integrity of the builder.
No real property can be another downside to this type of home purchase. In subdivisions, the size of the property is very limited.
No uniqueness is another pitfall. Most of these homes are cookie-cutter styles, with a few options available for changes in the interior.
Each of these options for buying a newly constructed home has its own pros and cons. What might be important to one home buyer may not be an issue with another. This is where personal preference comes into play.
In any event, before making any final decision it is important that the home buyer is informed about both of these wonderful choices.
The trademarks REALTOR®, REALTORS®, and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. The trademarks MLS®, Multiple Listing Service®, and the associated logos are owned by CREA and identify the quality of services provided by real estate professionals who are members of CREA. REALTOR® contact information provided to facilitate inquiries from consumers interested in Real Estate services. Please do not contact the website owner with unsolicited commercial offers. Not intended to solicit properties currently listed for sale.