Are you thinking about purchasing or moving into a new home this year? If so, you may be wondering if it’s better to buy an existing home or build a new one. Both older homes and new construction homes have their benefits and as a new home buyer, it’s important to be aware of the pros and cons of each option.
Below, we’ve provided a detailed comparison of the two options and discussed the advantages and disadvantages of each.
Should New Home Buyers Buy an Existing or New Construction Home?
Whether you should buy an existing or new construction home all depends on your situation. Every buyer’s finances, desires, and limitations are different. So really it all comes down to what’s best for you, which may be something entirely different than what’s best for someone else.
When weighing your options, it may be helpful to consider the pros and cons of both choices. Buying a home is a big decision and it’s important to be realistic about your situation. Comparing the advantages and disadvantages of each option can help you figure out which one aligns with your goals the best.
Buying an Existing Home
Here are some of the pros and cons of buying an existing home for new home buyers.
- Usually, you can move in faster
- You may be able to negotiate the price with the seller
- You can build equity fast by making home improvements
- Older homes are usually built on larger lots and have more spacious yards
- You’ll be moving into a community of people
- Prices are currently high for existing homes due to a shortage in supply
- There’s usually more maintenance involved
- Someone has lived in the home before you
- The home may not be exactly what you want
Building a New Construction Home
Instead of buying an existing property, new home buyers can also go the route of building a new construction home.
- You don’t have to fend off competition from other buyers
- New homes are usually more energy efficient
- You shouldn’t have to worry about any major repairs or maintenance for at least 10 years
- Your home can be customized to make it exactly what you want
- Supply chain issues have driven up the cost of building materials
- Building a new home is often more expensive, which can be challenging for first-time homebuyers on a budget
- You might not have many neighbors at first and there will be a lot of construction
- It takes longer to build a home than move into an existing one
- Upgrading your home through a builder can be expensive
Get Advice from an Expert
When deciding whether to buy or build a home, it can be helpful to talk to an expert who can thoroughly explain your options. Call Mortgage Solutions Financial today to get new homebuyer advice and speak to an expert about financing your home purchase.