Buying A Home vs Building A Home in Mississippi
Buying a home vs building a home. When you’re in the market for a new home, you have more options than you may realize. In this article, we’re outlining the pros and cons of buying a home vs building a home.
Buying A Home vs Building A Home
With home prices continuing to rise, the conversation around buying a home vs building a home is extremely relevant. You may be surprised at what you can afford if you build your home in today’s market. Buying a house, however, is an attractive option for most homeowners who aren’t as particular about their new home’s features. No matter what you decide to do, we’re arming you with the information to make the best decision.
Buying A Pre-Existing Home
For many home buyers, a pre-existing home makes a lot of sense. Because the process is such a standard one, it’s simply easier. We’ve outlined the pros and cons of buying a pre-existing home below.
Pros of buying a pre-existing home
- Negotiable Price – Everything in real estate is negotiable, but especially home prices. When you’re buying a pre-existing home, the price is determined by what you and the seller is willing to accept. If you can find a motivated seller, you may even be able to get a killer deal on your home.
- More Financing Options – With programs such as FHA financing, VA Loans, and first time home buyer incentives, there are more financing options for buyers who are looking to buy a home vs build a home.
- Move in Quickly – Buy a house today and move in tomorrow, right? Well, it isn’t quite that simple but the closing is much simpler with buying a home vs building a home. Working with an experienced agent will streamline this process even more.
- Upgrade Costs Can Be Delayed – Some homes will need upgrades. When you buy a pre-existing home and you want to make upgrades, you can do it on your own time. Upgrading your home means that you can take your time and prepare a budget.
Cons of buying a pre-existing home
- Design & Location Limitations – When buying a home, you weren’t considered in the conversation about what to build and where to build it. If you like a home, but don’t like the neighborhood (or vice versa) you either have to pass on the home or make a compromise.
- Upgrade Costs – Upgrades can be expensive. It can be extremely draining (mentally and financially) to have to make upgrades on your home as soon as you move in. Major upgrades and remodeling projects can be thousands of dollars that weren’t originally factored into the price of the home.
- More Maintenance Liability – New homes don’t require as much maintenance as older homes. When you’re buying a pre-owned home, you’re looking at older infrastructure in the home. With appliances, plumbing, heating and air conditioning, there’s just a higher chance that something is going to need attention.
- Higher Home Insurance – Home insurance is also typically higher with buying a pre-owned home than with building a new home. New homes come with features that are new and up to date, unlike most pre-existing homes.
Building A New Home
For many people on the market, building a new home just makes the most sense. You’re given a lot more control with building than with hoping that the market has what you’re looking for. You can build what you want, where you want. We want you to consider all of the pros and cons of buying a home vs building a home.
Pros of building a new home
- More Design Control – Most people love the option of building a home because they can finally live in the home that they’ve dreamed about. When you build a house, you get full control over the design of the home.
- Build Anywhere You Want – Home builders aren’t restricted to certain areas. When you build a home, you can build anywhere that there is land.
- Everything is New – When you build a new home, all of the appliances and features are new as well. Skip the worry that comes with older homes. HomeAdvisor, a nationwide site for home improvement, says that the average cost to install a new AC Unit alone is north of $3,000 and can be as expensive as $10,000.
- Annual Savings – Because new homes are more modern and energy efficient, you can save hundreds if not thousands of dollars a year in heating, cooling and water costs. In addition, you can save money by not having to worry about having to replace anything, as most home builders offer home warranties.
Cons of building a new home
- Time of Construction – If you want a custom house built, it has to be built. You have to wait for it to be completed before you can enjoy your new home.
- Temporary Housing – While you’re waiting for your home to be built, you have to live somewhere. Two common solutions are to postpone the sale of your current home or new find a place to stay while your new home is being built. Regardless of what you do, adjustments have to be made.
- Not as Many Financing Options – While there are several programs to buy existing home, New-home construction loans are a specialized niche in the lending industry and nowhere near as widely available as standard mortgages.
- Delayed Gratification – When building, you won’t receive the immediate satisfaction of walking into your home until everything is completed. While many top builders have spec homes, there is a certain level of imagination that has to come with building a custom home.
The Happy Medium – Buying A Newly Construction Home
If you’re torn between buying a pre-existing home and building a custom home, buying new construction homes is an excellent blend of the two. New construction homes haven’t had any previous owners, as compared to buying a pre-existing home and you don’t have to wait for them to be built, as one does with building a custom home.
Pros of buying New Construction Homes
- Everything is New – Same with building a new home. The home, and the appliances that come with it, are typically brand new. Most new construction homes also come with a home warranty.
- More Financing Options – There are more financing options for home buyers. This goes for buying pre-existing homes and for new construction.
- Move in Quickly – Skip the wait time that comes with building a custom home. In reality, you may be able to move into a new construction home faster than a pre-existing home. You don’t have to wait for the old owners to move out.
- Annual Savings – New homes don’t require as much maintenance as older homes. When you’re buying a pre-owned home, you’re looking at older infrastructure in the home. With appliances, plumbing, heating and air conditioning, there’s just a higher chance that something is going to need attention.
Cons of buying New Construction Homes
- More Expensive than Pre-owned Homes – New construction homes cost more per square foot than pre-existing homes in the neighborhood.
- Design & Location Limitations – With buying a pre-existing home, what you see is what you get. When you buy a home that’s already been built, you limit your ability for input.
- Minimal Landscaping – New construction homes typically come with minimal landscaping. If you’re looking to customize your home’s greenery, it could cost you some extra green.
- Neighborhood May Not Be Fully Developed – When you buy new construction, you’re typically surrounded by new construction. While you’re already moved into your home, you may have to deal with the fact that homes are still being built in your neighborhood.
Whether you buy a home or build one, the gulf coast is an amazing place to live. With sandy beaches and world-class food across the coast, it’s is one of the best kept secrets in America. If you have any questions, be sure to comment below or reach out to us directly.