New Homes: Should you buy it or build it?

A new home is typically the largest purchase that anyone will make during their lifetime. Some will spend a lot of time looking for or creating their “dream home” before they even think about signing a contract. There are a lot of factors to think about when hunting for your perfect home. Price, location, property taxes, condition of the home, and homeowners association fees are all things to keep in mind when searching for new homes in Ontario, CA. You may even have a particular list of things you wish your home to have and will be searching for those as well.

carpenter working a new house

You have a wide range of important decisions to make when purchasing a new home, but one of the first things you have to decide is whether you are going to purchase a home that already exists or if you are going to build one yourself. Buying and building a new home both have their own sets of pros and cons. Let’s take a look at both so you can compare and contrast and see which method is best for you.

Buying a Home that already exists

Convenience and cost are two main advantages that you get when purchasing a home that already exists. After you have been pre-approved for a loan, you are able to look around for a new home and place an offer on the one that best suits you. If you hire a real estate agent, they will be able to help you make the process a bit easier by helping you find homes to view, walking you through negotiations, and they can also help you with paperwork. Closing for a home will typically take about a month or two once your offer is accepted. Buying new homes in Ontario, CA involve many steps so the convenience of being able to move into an already existing home is a pretty nice advantage over building.

The next thing to think about is cost. According to data that the National Association of Home Builders put together, often times, but not always, it is less expensive to purchase an existing home. Once you have found an existing home you really like, you should use a mortgage calculator so you can get a better idea of just how much you will be spending, interest rates and all.

Convenience vs. Customization

If you want a home in an already established neighborhood, then this may be another reason why buying an existing home is right for you. Chances are that the home will already have landscaping too, so you won’t have to worry about planting anything or waiting for things to grow.

On the opposite side of that, the largest disadvantage of buying a home that already exists is that you may have to sacrifice exact things that you want. There may be parts of the home that you are not completely in love with, or you may wish that certain parts were slightly different. In particular, the functionality of some older homes may not meet the needs of most buyers. For example, a home with four-bedrooms may only have one bathroom or parts of the house may be too small and with no room to expand.

You are most likely going to have to spend extra money on repairs, remodeling, and redecorating unless you get lucky and find an existing home that has everything you want. You need to factor in all extra expenses when financing so that you know exactly what you will be spending.

Building a New Home

Building a new home isn’t always as convenient as buying a house that already exists. You will need to find the land, find a builder or architect, and you will also have to design every element of the new structure. Chances are, too, that your new home will not be inside of an already existing neighborhood. If you join an existing development of new homes in Ontario, CA it may limit what you are able to choose. You will also need to factor in different systems like municipal water and sewage as well as any permits you might need first.

The biggest advantage of building a new home is that you are able to build your exact dream home. Some people see this advantage as the main reason to choose building over buying. Although the initial costs of building can be greater than buying, it may be a better investment as you will have fewer repairs and less maintenance.

Time and Money

The biggest disadvantage to building new homes in Ontario, CA is that the time frame is longer and the costs are higher. However, you are able to limit the risk of going over budget by having a proper contract in place. Additionally, the contractor building your home should be able to help you reduce costs. They should be able to provide you a list of things that will save you money like suggesting cheaper materials that look just as good.

In order to save both time and money, you are going to want to keep in good communication with your builder and contractor so that you can guarantee that you are content with everything design wise before building starts. It is not a good idea for you to change your mind about anything after building has already started.

The Main Point

Regardless of if you start your new home search by looking for an existing home, there is always the possibility that you could choose to build instead so that you are able to build your perfect dream home. Alternatively, you may have decided to build but then changed your mind and decided to search for an existing home instead. Either way, make sure you hire the right people to work with through the entire home buying or building process, that way you can make sure that everything goes as smoothly as possible.