A home is one of the single largest investments that you will ever make.
When you first start your home buying journey, one of the first questions you may ask yourself is if you want to buy a home or build a house yourself.
While buying a home comes with its own set of challenger, there are many pros and cons to building your own home. Here is what you should understand what building a home entails.
Pro: You Don’t Have To Worry About Repairs
It is no secret that when you shop for a home, potential repairs to the house you want is on your mind. Will it need a new roof? Are there any underlying issues that will pop up later?
When building your own home, you do not have to worry about repairs since the home will be brand new. As such, you can focus on what features you want and any appliances and systems you get will be new and under warranty.
Con: Be Prepared For Higher Costs
When you build your own home, be prepared for higher costs and not much room for negotiation when it comes to closing costs or purchase price.
Because you will be working with contractors, you will need to understand what is included in the base price and what the costs will be at closing. Getting these estimates will go a long way in helping you create a budget—especially since the average cost to build your own home is $223,000, according to Realtor®.
Pro: New Homes Are More Energy Efficient
Because new homes are built with up to date codes and can easily incorporate modern technology, they are often built to be more energy efficient. This is great in helping reduce your energy bills, keep your home more comfortable, and help the environment.
Con: You Won’t Be Able To Move In Immediately
Building your own home is a long process and you won’t be able to move into the home immediately. That means if you sold your previous home you must be prepared to rent a place you can stay until such time you can move in.
Pro: You Get The Features You Want
Building a new home is an exciting prospect in that you can get the features you want in your home right off the bat. You can pay for what you want and not be saddled with features you dislike.
That way, you can get that kitchen island or game room you’ve always wanted.
Always Work With An Experienced Agent
As always, work with a real estate agent that is experienced in working with new home builds. They will be able to guide you through the process and they know the local market. An experienced real estate agent will keep you up to date with any information you should know, including costs and any other information you need to know, including answering your questions.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply. Always consult an accountant or tax advisor for full eligibility requirements on tax deduction.