If you’re in the market for new construction, you may be debating between buying or building your home. Buying a move-in-ready abode can allow a buyer to become an owner quicker, but lacks the complete customization that comes with building your own home. Knowing which option is better is entirely up to your situation. Let’s take a look at a few items to consider and the pros and cons of building a house before making the final decision.
Convenience or customization?
A big perk about building a home versus buying a new build is you will have a say in the building process. For instance, you can decide where the bathrooms go or what materials are used. This allows you to build your dream home without having to do any minor (or major) renovations after move-in. However, this process can take a lot of time and may not be a great option if you need to move to a new place ASAP. Buying a home already built is a more convenient option when it comes to timeliness, but keep in mind the home may not come with the features you want and need to add down the line.
It’s no surprise building a custom home means a later move-in date. While you can move into a ready home right after closing, a custom home needs time for planning, construction, and any revisions. The average amount of time it takes to build a custom home is between 6-12 months, but some experts reveal it can take up to two years. The longer timeline is based on any weather delays, shortages in supplies, permit delays, and site conditions. If you don’t have upwards of two years to dedicate toward customizing your own home, or you simply do not want to wait that long, a readily-available home may be the better option.
According to HomeAdvisor, the national average to build a custom home is $306,102, while the national average to buy a home is around $227,000. This means you’re likely to spend a lot more out-of-pocket on a customized home than a home you can move right in to.
It makes sense when you think about it, though. With a customized home, you choose all of the fixtures, amenities, rooms, and any additional gadgets you want in the home. While the price tag of a move-in ready home may seem appealing, you should consider the features most important to you. Would you rather pay for them up-front and move into a home that fits all your needs, or would you rather spend your money over time and add customizations as you go?
In addition, keep in mind for a custom home, you may also have to buy your plot of land on top of the build price, adding to the overall cost of the home and more money you’re spending upfront.
The buying process
Not all buying processes are created equal. In fact, the process of buying a home versus building your own is vastly different.
If you want to build your own home, you may compete with other builders and developers for land, so your first step is to hunt down your perfect plot of land and secure it. From there, you’ll have to choose your contractor, which can mean hours of interviewing prospects, who can help make your vision a reality. Finally, unless you’re planning to do an all-cash purchase, you’ll need to secure financing. With a new construction loan, typically you’re provided financing for the construction first and then a permanent loan following the construction period.
With a move-in ready home, there are fewer hoops for a borrower to jump through. Once you find your perfect home, you need to decide what type of loan you want (conventional, FHA, VA, USDA, etc.) and work with your OVM Financial loan officer through the approval process. From there, inspections will commence and then you’ll move onto closing. Finally, you’ll be handed the keys to your new home and you’re ready to move in!
The bottom line
When it comes to deciding which type of home is best for you, consider all factors of your situation including the features most important to you and your timeline. No matter what you choose, OVM Financial can help you finance the move-in ready home you’ve fallen in love with or your very own custom-build perfect for you and your family.
As always, we’re here to answer any questions you have and help guide you through the process! Give us a call or start your application today.