Even with countless viewings of available houses for sale, you still can’t get closer to finding your dream house than when you began. Perhaps opting to construct your home is the way you want is the way to go. Definitely, through building your own home, all your needs will be completely fulfilled, but remember, the process of creating your prospective house has its fair share of challenges; thus, it is important that you weigh both the merits and demerits of building a home versus buying before you take the plunge.
This may be the biggest purchase you will ever make in your lifetime. Therefore, you need to weigh your options well. Before you start, as you check out and evaluate the potential real estate agents, you must also vet the builders and architects. Before you sign with anyone, it’s important to talk with previous clients who bought a house. Also, check references from those who choose to build their homes.
As you get started, we have made a comprehensive guide to help you through it. Check out these advantages and disadvantages of buying a house vs. building a home.
Advantages of Buying Existing House Compared to Building
When considering the option of buying an existing home, there are several key advantages to consider. These benefits make it an appealing choice for many homebuyers. Below are some of the main advantages of purchasing an existing home.
Convenient
One of the biggest advantages of buying a ready home is the quick turnaround time. If you compare the time taken to build a home from scratch and the overall time taken to begin the search process to owning that home, the time taken in the buying process of a ready-made house is significantly lower. Buying an existing house can take even less than two weeks. You only need to shop around, find the one you like, do your inspection of the house, and make an offer. If you have very little time, this is the best option.
Buying A House is Cheaper than Building
Based on the housing market you are looking for, sometimes it’s cheaper to buy an existing home. You can save money on labor, materials, and permits with no construction costs or delays. Plus, existing homes usually have established value, making it easier to get a fair price.
Some areas that may have been affected by the housing crises may be having the best deals on the houses.
Preferred Location
You have a better possibility of getting a house in your preferred location. It also allows you to choose from an established neighbourhood.
Additionally, you can evaluate the surroundings before making a decision, ensuring the location fits your lifestyle.
Constructing your own house means you must ensure that your preferred location has available land you can purchase. If there is no available land, you will have to settle for an alternative location. Besides, there is a wider variety of choices of where to purchase a house compared to places with available land for sale.
Established Neighborhood
In many cases, areas with available land for construction are in new subdivisions, mostly at the end of suburbs. Sometimes, the newer neighbourhoods are not in the most attractive areas and have no basic amenities such as good schools, hospitals, etc. Buying an already-built house means the place has already developed and has all the required facilities.
Ready Houses To Move In
Once you purchase an existing home, you will likely get a house you can readily move into. You can even get a house with everything in it, for example, an expatriate who may be moving back to their country or a retiree who wants to go back to the rural areas. Of course, there is a possibility of renovating the house later to suit your preferences or those of your family.
Disadvantages of Buying an Existing House Compared to Building
While buying an existing home can be a great option, it also comes with certain drawbacks. These disadvantages can impact the overall value and long-term satisfaction of your investment. Below are some key challenges to consider when purchasing an existing home.
You May Not Get What You Want
Even though there are many benefits to purchasing an existing home, you can never have everything you want. For instance, if you get an older, affordable home, the little luxuries you want, like luxurious bathroom style or the latest technology, may not be there. Worst still, for various reasons, sometimes the additions and renovations you might wish to make to your new house may not be possible.
Changes May End UP Costing More
Changing what you don’t like in your newfound property may cost you more than rebuilding. Before you settle on purchasing an existing home, calculate the cost implications of renovating. This includes the cost of hiring job specialists such as engineers, contractors and quantity surveyors.
You Must Compromise
Another disadvantage of purchasing an existing home is that there is a higher possibility of you compromising. You may get your preferred perfect neighbourhood, but the house may not be your preference or vice versa.
Or else, you can get a house with a big table room and a tiny kitchen. Thus, depending on your preference, try also to be open-minded so you may not be frustrated with the whole process.
Unseen Problems With the Existing Home
If not thoroughly inspected, an already-built home may have hidden problems. It could be built on public land or encroach on government land. This can make you lose your property or cost you more on reconstruction. Therefore, before you make your payment, ensure you do a thorough inspection of your prospective house.
You May End Up Buying Someone’s Problem
Even though you may thoroughly check everything out before buying the house, there is still a possibility that it might develop a few issues once you move in. Of course, this can happen even with new construction. Nevertheless, an already-built house will require more replacements and renovations than building a new home.
May Lack Modern Features
An existing home may lack modern features commonly found in newly built homes. For instance, it may lack things such as open floor plans, energy-efficient appliances, or smart home technology.
Older homes might have outdated kitchen designs, fewer storage options, or smaller bathrooms, which can require costly renovations to update. Additionally, they might not include the latest eco-friendly materials or sustainability features, making it harder to meet current lifestyle or energy-saving preferences.
Advantages of Building A House As Compared to Buying
While building a home can be an exciting choice, it also comes with several advantages that make it a popular option for many. These benefits can enhance your living experience and ensure long-term satisfaction. Below are some key advantages to consider when deciding to build a home.
Building a House Enables You Get What You Want Unlike Buying
The biggest advantage of constructing your house is that you can customize anything according to your preferences, interests, tastes, and specifications. Unlike buying an already built house, you’re not stuck with someone else’s choices.
You will turn every dream you have into a reality. You have the freedom to create a home that perfectly fits your family and how you live. Whether it’s a new design or a modern finishing you saw in a property magazine, you will have it all done for you. Your house will have your touch.
Little Maintenance Will Be Required
A newly constructed house will require little maintenance once you move in. Given that everything is new, it will save many costs that keep popping up trying to repair broken fittings and fixtures. You get a chance to enjoy your new space without worrying about constant upkeep.
Easier To Re-selling
Suppose you want to resell a new house, assuming your house is in a desirable area. In that case, it will appeal more to a potential buyer than an old house.
Additionally, many people prefer the energy efficiency and customization options that come with a newly built home.
That said, in some areas, it might be hard to recoup the entire construction cost when reselling, especially if you resell too soon.
You Can Incorporate New/Latest Technology
When you build a new home, you can design and incorporate the latest technology like alarm systems, UPVC windows, CCTV, alarm systems and others. Since you will use the newest materials, you can use energy-efficient equipment and appliances, translating to lower utility bills.
New House is Much Healthier
Building a new house is much better since you have the option to build using better materials that are less toxic than those used in an older house. You can choose less reclaimed lumber, toxic natural materials, or low-VOC paint for your home. Also, a new home won’t have any toxic dangers such as dangerous substances such as lead paints or asbestos or alleges and moulds.
Gives A Sense of Ownership and Pride
Building your own house makes you feel really proud and like you own it in a special way. It makes you feel really good because you made it just how you wanted, from the first drawings to the last little thing. It makes your house more than just a place to live; it shows how hard you worked and makes you happy for a long time.
Lots Of Assurances on Buying Than On Building a House
With the new constructions, almost every appliance will be covered by different warranties for the first few years. The ready-made house may be constructed using substandard materials you wouldn’t have approved of if you had a choice. But by buying a parcel of land and building your home from scratch, you go for the quality materials available.
Better still, the inspectors will ensure that everything is done to meet the local building code required.
Preferred Location
If you opt to build your house, you have the upper hand at buying land in your preferred area. It often gives you more choices about where you want to live. You’re not limited to houses that are already for sale. This means you can find the perfect spot for your family, whether close to work, in a good school district, or near family and friends. Choosing the right neighborhood is a key advantage of building. This freedom allows you to select an area that perfectly suits your lifestyle and preferences. Hence, giving you a deep sense of belonging and long-term happiness in your chosen community.
You Move At Your Own Pace
Since you will be undertaking one of the crucial projects in your life, you will enjoy every step along the way- a brick at a time. You’re not rushed by a seller or a closing date. You can take your time with each step, from planning to finishing touches, ensuring everything is done right and how you want it. This gives you more control over the whole process.
You Choose your Architectural design
Every young person has an imaginary image of the dream house they wish to build once the right time comes. One way of making this dream a reality is by purchasing a piece of land and getting the best architect to incorporate the classic design in line with your dream. You get to choose the style you love, whether modern, traditional, or something completely unique. This means your house will reflect your personal taste and become a unique home.
Disadvantages of Building Your House Compared to Buying
Building a home is an exciting journey. However, while there are many advantages, it’s equally wise to be aware of the potential challenges that come along the way. Understanding these challenges upfront will allow you to plan accordingly, manage your expectations, and minimize potential stress during the building process. This is what you need to know.
You Spend Much Of Time
Building a new home will take longer than buying an existing one. You will have to deal with construction issues, frequent inspections, and unnecessary delays due to bad weather or delivery issues. Also, you will have to be committed throughout the process. However, you can decide to hire a project manager, but it’s advisable to visit the construction site frequently.
More Expenses
First, you will have to acquire land where you will build a new home. And before you enter a purchase agreement, you will have to deal with the whole process of acquiring land such as title searches, verification process, etc.
Cost Overruns
This is a common challenge in homebuilding. Think of it like this: you create a budget for your new house, estimating the cost of materials, labour, and everything else. However, during construction, unexpected expenses often arise. Maybe the price of lumber increases, or you discover a problem with the land requiring extra work.
Perhaps you decide to upgrade some finishes or add a feature you hadn’t initially planned for. These unforeseen costs can push your total spending beyond your initial budget, leading to a cost overrun. It’s really important to have some extra money set aside in your budget, just in case things cost more than you expect. This “extra money” is called a contingency fund, and it helps you avoid money problems if surprises pop up during the building.
Many Limitations When Building Compared to Buying a House
You may experience limitations due to financial constraints when building your house. Thus, you will only have to adopt a style that matches the amount of money you have. Also, sometimes it’s hard to acquire land in a perfect location, such as near the road or with basic amenities.
Besides, It can cost more than you plan, and things might take longer than expected. It’s also a lot of work and can be stressful. Finding good builders and getting all the right papers can be tricky. Even though you get to choose what you want, you still have limits on money, where you can build, and what builders can actually do.
Lack Of Skilled Personnel
Getting a competent contractor and skilled workers can be a real hassle. According to a report by NCA, only 30% of construction workers are qualified in Kenya; the rest are semi-skilled. It’s no wonder many buildings are collapsing now and then in our country. Thus, you will need to search for an NCA-approved contractor to oversee the construction process.
Unpredictable Resale Value
When you build a house just how you like it, it’s great for you, but think about selling it later. If your house is too different from what most people want, it might be harder to sell, or you might not get as much money. So, it’s good to make some choices that other people will like too, so your house is worth more when you want to sell it.
You have Limited Control (Sometimes)
Even though you’re building your dream home, you don’t always have complete control over everything. You rely on other people, like builders, plumbers, and electricians, to do their jobs well and on time. Sometimes, things go wrong or take longer than expected, and you might be unable to fix it quickly. So, while making the big decisions, you have to trust the professionals you hire, which means giving up a little bit of control.
It is a Hard Learning Curve
Building a house is a big learning experience, especially if you’ve never done it before. There are many new things to learn, like what all the different building terms mean, how to get permits, and how to work with contractors. It can feel like learning a whole new language! You’ll probably need to ask many questions and maybe even hire experts to help you understand everything. It’s exciting, but it can also be overwhelming to learn so much at once.
Potential for Disputes
Building a house can sometimes lead to disagreements. You might have a different idea from that of your builder, about what you want something done. Also, maybe the person selling you the wood doesn’t deliver it on time. Sometimes, neighbours complain about the noise or how long the building takes. These disagreements can cause delays, cost extra money, and even lead to bigger problems. It’s important to be clear about what you want from the beginning and try to talk things out if there’s a problem.
Bottom Line On Whats Better Between Buying Or Building A House
As you have seen, building your home or buying an already-built house will depend on a whole lot of factors. The type of home and the size you are interested in will play a big part in your chosen location. Each one of your choices will have its challenges and advantages.
Thus, you will have to weigh the pros and cons of every option. You must ensure you have acquired all the relevant information and made an informed decision.
In either case, working with an experienced and qualified professional real estate agent or a general contractor will help you relax, knowing that you have someone to help you make the right decision. The best decision you can make is choosing an informed one, whether building or buying.
At Bluman Properties, we understand the importance of making an informed decision when it comes to buying or building a home. With our experience and expertise, we can guide you through every step, ensuring you choose the best option for your needs. Trust us to help you navigate the process and make the right choice for your future.