When looking to move into a new home, many people first consider the option of buying a home. Of course, buying an existing house comes with some advantages and disadvantages, as does building a house. We’ll lay out the facts about both options so you can come to a decision based on what matters most to you. Below are the upsides you should be aware of when buying an existing home. If you’re hoping to move quickly, buying an existing home is probably your best option. Construction projects will require some time to complete, and that’s the same whether you’re building a home or buying a fixer-upper.Pros Of Buying An Existing Home
Move-In Condition
Fewer Risk Factors
In general, you’ll likely find it cheaper to buy an existing home, but market conditions always affect home prices. A home loan is less risky than a land loan and typically comes with a lower minimum down payment and a better interest rate.
Home Renovation Options
Purchasing a home rather than building one doesn’t mean you’re necessarily going to be stuck with a home feature or two that fails to meet your needs. You can make upgrades and customizations to the home when you have the time and money, creating a house that’s your ideal abode or somewhere close to it.
Established Landscaping
An existing home will likely have some landscaping, eliminating that expense. If you like mature shade trees and rhododendrons for days, you might want to stick to buying a home over building one. It could take years for new landscaping to match the beauty of mature plantings.
The Room To Negotiate
There’s not much negotiation you can do when you build a home. When you’re purchasing an existing home, however, you have the opportunity to negotiate with the seller on a different home price. If it’s a buyer’s market, you’re likely to have some real negotiating power.
Cons Of Buying An Existing Home
Of course, buying a home also has some drawbacks, which we’ll discuss next.
House-Buying Stress
Searching for the right home can be time-consuming and stressful. Depending on when you buy, the real estate market could belong to the sellers, who could field multiple clean offers above asking price within days of listing their home. In that case, buyers could face high prices, bidding wars and multiple rejected offers.
It’s not necessarily going to be easier to buy than to build. If you do choose to buy an existing home, working with a good real estate agent can help make the process easier and quicker.
The Need To Compromise On Home Style
Finding a home you like and that reflects your tastes can be tough even when you have a wide variety of choices. When there are few homes for sale versus the demand for homes, you’re unlikely to find many options that meet all of your desires.
Possible Maintenance Issues
With older appliances, plumbing and electrical systems, you may run into major maintenance issues sooner rather than later. One possible solution? Consider a home warranty. With a home warranty, you know exactly how much to budget for home repairs and who to call if a problem arises.
Less Energy Efficiency
Older homes are more likely to be less energy efficient, which can lead to higher energy costs. You’ll likely not be able to achieve the same energy efficiency you could get with a new, sustainable home, but you can take various steps to reduce your older home’s carbon footprint.
The Potential For Hazardous Materials
An older home may present health hazards from years back, and it’s possible the owner may not even be aware of them. Homes built prior to the 1970s, for example, might contain lead paint. If you have children, you’ll want to take this into consideration before buying an existing home.
