So, you’re finally ready to own a home. You’re confident you can afford all the expenses and responsibilities that come with being a homeowner. However, the question is, would it best to buy a prebuilt home or is it better to build your home from scratch?
Each option has its pros and cons. By learning about the advantages and disadvantages of each one, you’ll be able to decide which one will best suit your needs.
Pros of Buying a Prebuilt Home
- Existing houses makes it easy for homebuyers to shop around for houses depending on their specifications like the number of rooms, toilet, and bath and garage size.
- Whether you choose to look for one with the help of real estate agent or not, you can find a home in your desired location and easily move in after a month or two after your seller approves your offer.
- Most prebuilt homes already have mature landscaping
- If you lack the funds, one can always apply for a mortgage to help you finance your home purchase.
- Usually, It is also much cheaper to buy a house than building a new one.
Cons of Buying a Prebuilt Home
- Many homeowners tend to find a house without the features they want in the first place
- Renovation and remodeling may be costly
- Depending on the location of the existing home, the house may be a lot more expensive than building a home from scratch.
- Since older homes are more prone to wear and tear, repair and maintenance may be costly
- Existing homes usually means dated features and wasted energy
- Some prebuilt homes may come with health issues and may not be as environment-friendly as projected
Pros of Building Your Home
- It lets you create your dream home and ensures you get and pay for what you want
- Those who need help financing the construction of their homes only need to qualify once for a construction loan primary residence.
- Building a house ensures you get what you want since you have the freedom to build your dream home
- One only needs to pay stamp duty on your land
- When your timing is right, like when you find developers offering lower prices during early stages of sales, you can grab a good deal which means it might be cheaper to build than buy
- Since you’re building a new home, most materials used are durable, eco-friendly and energy-efficient
- Most appliances will be under warranty and tip-top condition unless you pay for second-hand appliances
- Being there from the start till the end of construction gives you a greater sense of satisfaction, joy and emotional attachment to your new house
- You can create instant equity by building your house
Cons of Building Your Home
- Building a home from scratch takes time, which means you won’t be able to move in as quickly as when buying an existing house.
- Costs can build up over time which is why one needs to make sure to set a realistic budget and expect you’ll need more, get a reliable builder to work with you and make a detailed plan and timeframe
- The land where you plan on building your house may be costly depending on the location
- You’ll need to handle more paperwork when financing your home with a construction loan