Moving into the home of your dreams is an exciting stage of life. Unfortunately, finding the perfect home is often unattainable. Outside of cookie-cutter developments, houses can be incredibly unique.
The internal layout of one can be very different from the layout of another. When you have a very specific vision for your dream house, this lofty vision may not be possible with a home that has already been built. Even if it does exist, it may not be for sale at a price you can afford.
Perhaps you should consider building a new home altogether. Housing supply is often unable to keep up with demand in real estate markets across the country.
When you cannot find the right house for you, building a new one can be the ideal solution. You will have far more input on the design so that you can match your vision as closely as possible.
However, building a new house is not for everyone. Let’s break down the pros and cons of this particular real estate strategy.
Pro: Designing It Your Way
The biggest and most appealing benefit of a new construction is that the design is up to you.
Obviously, you have a budget to work with, and the design needs to follow certain building codes, but these restrictions still allow for plenty of customization.
As long as the construction company you work with can make it happen, the possibilities are endless for the design of your brand-new home. You can ensure that the house will meet the specific needs of your family.
Con: The Higher Cost
The main obstacle that prevents most buyers from investing in new construction is the cost. Not only are you paying for the land and the eventual house itself, but you will also have to pay for labor and the cost of materials during the construction phase.
The median cost of an existing home near the end of 2023 was about $387,600, while the median cost of a new build at the same time was $434,700.
Even financing is a little more complex than with a traditional home, as you may have to look up “What is a single closing loan?” to understand the types of loans that are available for new constructions.
Pro: Fewer Maintenance Issues
Although new constructions are rarely perfect in terms of repairs, you can generally bet on there being fewer repair and maintenance costs early on. The primary reason? Everything is brand-new.
HVAC systems, appliances, building materials, and everything in between are young in years, so the effects of normal wear and tear will not take hold for a long time.
Usually, you can count on lower repair costs in the early years of owning this home, though that does not mean that maintenance is entirely avoidable.
Con: Long Wait Times
When you buy a pre-existing home, it may only take a few months from the time you start searching to the time you can move into the new living space. Building an entirely new house takes much longer than that.
Although you could choose modular homes to cut down on construction time, it is still going to take a while to assemble the house.
This means you will be making payments on this house for a long time before you even get to move in and enjoy it, especially if the construction phase encounters any delays.
Is a New Construction Worth It?
That all depends on your current situation. If you have a lot of money saved up and can put down a significant down payment, then the higher cost of new construction may not intimidate you.
At the same time, you can design the space to your exact needs so that paying for upgrades may not be necessary for a long time.
You also need to consider how much more complicated the process is for building the home. You need to find reliable construction contractors to work with.
You have to come up with a design that works with the help of an architect. Then, that design needs to be executed during construction, with a lot of input from you throughout the process.
Whether or not all this is worth it depends on your patience and financial resources. Those with money to spare and a decent living situation where they can wait can benefit from the more complicated and expensive process once they move into their customized home.
However, those who were unsure of what they were getting into could become overwhelmed by the process even if they can afford it.
Do your research ahead of time to determine if a new construction home is the right path for you.