The home-buying process involves many important decisions. After determining budget, one of the initial decisions buyers need to make is whether to buy a new or existing home.
Most individuals start by spending countless hours and energy scouring the MLS listings in hopes of finding their perfect home. This can be a daunting exercise exposing frustrations around many corners. Or it can be a rewarding adventure leading you to that gem on your favourite street. The other option is simply building a new home or buying a new pre-built home. Most home buyers are unaware that building a new home can open the door to many positive possibilities and keep budget in check.
While every buyer generally has a wish list that includes wants and needs, some other considerations in the decision-making process include: Location, price, and design, features, quality and the overall general sense of the home. Each path has its advantages and disadvantages. Here are the top 15 considerations to buy a new or existing home.
Pros of Building a new home:
Options and customization:
Building new gives the home buyer a clean slate. You’ll get to personalize every detail within the design and construction of your home. From room sizes to paint colours and kitchen design, all elements of your home will have your stamp of approval on them. Starting with the land you’ll go through a design process which will cover all the customized components of your home. The look of your home, the floor plan, functionality and design features will all be covered in the planning of your new home.
The process:
Understand it won’t be a quick process waiting until move in day. As a result the anticipation may kill you, but the process should be a fun and rewarding experience. It should be memorable and like achieving any goal, well worth the efforts getting to the finish line. This is where working with a trusted builder who has your best interest in mind, will really pay off.
Hey, it’s a new home:
New homes are built to meet current building codes and have up-to-date technology. As a result you probably won’t have to worry about big repairs or heavy maintenance issues for several years—meaning no leaky roofs or failing HVAC systems! Plus, many homebuilders offer a limited warranty if something should break.
Technology and Innovation:
Like anything these days, New and Better is always just around the corner. Homes are no different. They can enjoy innovation and solid advancements in building technology as well. Your new home has the opportunity to showcase all the latest and greatest products, energy efficient advancements and smart home technology. Taking advantage of these can provide more comfort in day-to-day living and potentially save home owners hundreds if not thousands of dollars annually.
Home Warranty:
A new home will come with peace of mind through a New Home Warranty. Like all warranties, read the fine print and ensure you are working with a creditable builder who stands behind their work.
Cons about building a new home:
Duration:
Good things come to those that wait, and rushing things is never a good idea. Well a home takes a bit of time to build. . Above all, planning will set the stage for a successful project. Depending on the complexity, the pre-construction period can last 2 months to a year. Followed by the municipal approval phase and subsequently the build phase. As a result you should expect a minimum of 10 months to 1 year to complete your home. In the Fraser Valley, British Columbia we plan for a minimum of 1 year.
Stress:
Building a new home can be very stressful. Don’t underestimate the number of decisions you will need to make. Selecting interior trim design, countertops, fixtures and cabinets is one thing – and then weighing the budget and how they will all work together is another. A good build team will be able to prepare you and guide you through the considerations. In conclusion, building a new home is a grind, but well worth it in the end and the final decisions are yours to make
Costs:
A home is one of the most expensive purchases most people will ever make. Building a new home, if not careful, can morph into a house poor life. Upgrades can quickly drive up the price of your new home. It’s a good practice to budget a contingency of an additional 15% over the purchase price. Considering this will give you some cushion in your purchase. Likewise, it will provide some wiggle room for that designer light fixture you found during the construction. Over and above the contract price, don’t forget about the post completion costs like: landscaping, blinds, and fencing. These may not be in the scope of your contract price.
Pros to buying an existing home
Convenience:
After you know your budget, you can typically shop around, pick out a home, and make an offer. Working with a reputable real estate agent can really help you in this process. That individual will have a better sense of neighbourhoods and other important information to help in you decision. This can make the process quick and easy. Depending on the purchase agreement you may be able to make the move into your new home in as little as a few weeks.
Cost:
Generally, home buyers search for homes priced within their approved mortgage amount. They make an offer, and if accepted the price is firm. You know exactly what you’re buying and for what price.
Time:
Even though the process involves numerous steps—such as financing, viewing homes, making offers, home inspections, and closing—the convenience of being able to move in right away is compelling enough for many people to choose an existing home over building a new home.
Area:
An existing home may be a better option if you desire to be in a particular established neighborhood—near work, school, friends, and/or family. In addition, established homes will most likely have mature landscaping, and you won’t have to worry about starting a lawn, planting shrubs, and waiting for trees to grow.
Cons about buying an existing home:
Move in ready – Is it?
Your existing home may be a “make work factory”, requiring heaps of maintenance, upgrades and renovations. This may be a pro to some handy people, but non the less if you are looking for something move in ready and zero maintenance, a new build may be a better choice. If renovations are not your cup of tea, avoiding home improvement pitfalls may be a big consideration.
Not exactly what you want:
What sacrifices are you willing to make buying an existing home? It’s a question you should ask and more often than not, you won’t get exactly what you want. You may not be in love with the floor plan. You may wish the half bath on the first floor was a full bath or that there was another bedroom on the main floor. Be prepared to weigh the things you are willing to give up, or deal with.
Old:
Just the opposite of new is old, and no house lasts forever. Things break down and require replacement. With an older home there is no warranty and items like roofing, windows and flooring may just need to be replaced. These are no small expense and on top of that can be a huge inconvenience to your life if/when they need replacing.
Key points:
- It may be challenging to find a home that is in perfect condition, so if you are buying a home, you may need to factor in the costs of any updates or renovations.
- Building a new home allows buyers to customize every component of their home and put energy-saving measures in place.
- If you are on a specific timetable, buying a home versus building one, is usually a safer choice.
- Older homes, may be functionally obsolete, no longer meeting the needs of todays buyers. For example, an older four-bedroom house may only have one bathroom, or the kitchen may be too small with no room for expansion.
- Unless you find an existing home that has your exact wants and in perfect condition, you may be in for additional expenses. Additional costs can add up for: renovations, repairs, decorating, and/or landscaping. These additional expenses should be factored into the overall price, especially when comparing multiple properties or comparing the cost of building your own house.
In summary:
| Build New | Buy Existing | |
| 100% personalized | ✔ | |
| Exactly what you want | ✔ | |
| Engaging process | ✔ | |
| Peace of mind Warranty | ✔ | |
| New products / New technology | ✔ | |
| Energy efficiency | ✔ | |
| Speed to move into your home | ✔ | |
| Compromises required | ✔ | |
| Costs | ✔ | ✔ |
| Additional work required | ✔ | |
| Minimal maintenance | ✔ | |
| Convenience | ✔ |
Delonix Homes has been building new homes and completing massive home renovations for over 20 years. The question, should I build a new home or buy an existing one, is still an important 1st question to ask. The one thing that we can say for sure is that no home will ever, and always be perfect. So, after all this debate, yes, no home will ever be “The Perfect Home”. We all change and our lives and needs change too. Our ideal home today, will likely change in 10 years.
One bit of advice we can provide is to ensure all the decision makers have equal input into the final decision. Don’t rush this decision, and try to have fun. It should be an enjoyable experience. Your home should check all YOUR boxes. Don’t make decisions based on what others think, the latest trends or spur-of-the- moment ideas. Almost 30 years ago my father gave me advice which his father gave him – In the end, your home is what you make it. So, after building and renovating hundreds of homes, I still believe this advice to be true today.
Delonix Homes is an award-winning custom home builder in the Fraser Valley British Columbia. We can help you with your decision: Should you build a new home or buy an existing home?