In considering building vs buying a home, you must review all of the advantages and disadvantages to make the right decision. This website has been devoted to the home building aspect and the attributes have been identified.
Let’s take this opportunity to review some of the benefits of building your own home whether you do it yourself or with a building consultant. They include the following:
1. You can save 20% – 40% of the construction cost.
2. You can select your own site to build your new home.
3. You can select your own house design.
4. You can personalise your own home with your own set of specifications.
Even if you choose to use a new home builder to build your new home, there are several benefits to that selection when considering the building vs buying a home issue:
1. You delegate the management of subcontractors and suppliers, obtaining of all permits and inspections, and scheduling of work to a third party.
2. Same as No. 2 above.
3. Same as No. 3 above.
4. Same as No. 4 above.
The information presented from this point forward will center on the advantages and disadvantages of the buying a home aspect of building vs buying a home question. We will separate buying new home construction from buying an existing used home. There are distinct benefits to both aspects of buying a home in considering the building vs buying a home question.
Let’s begin with some new home buying tips. Bear in mind that your ability to personalize your new home will be limited since the builder has already constructed the home. Your choices will, in all likelihood, center around the color of paint on the walls and the color of the floor covering. If you can live with that, that is good.
One of the new home buying tips is that you need to make an inspection of the quality of workmanship in each of the houses that you are considering. Specifically, look for the mitered joints on the casing around the doors and windows. There should not be any large gaps in the joints.
Look at the backsplash on the kitchen countertop. Does it hug the wall or are there gaps. The painter will have to use a great deal of caulking to fill in the gaps along the backsplash.
Another thing to look at are the kitchen cabinets. Are they plain or is there a design on the doors. Is the style (vertical space between the doors) large or are the doors close together. Remember, the greater the space, the cheaper the cabinet.
One thing that most people fail to look at when buying a home are the light fixtures. Are they good quality or are they cheap looking? I never liked the look of ceiling flourescent fixtures in the kitchen because that is how mobile homes are built. Recessed can lights distributed around the kitchen ceiling for highlighting work areas is preferred.
Look at the lights in the hallway and bedrooms. Are there ceiling fans in the bedrooms and living area? These are just a few of the items to check out when inspecting new home construction.
If you are building a home, this becomes a moot point because you have made the selections yourself. This is one advantage to consider in the building vs buying a home dilemma.
If you are inspecting a house that has a basement, another one of the new home buying tips is to look at the top of the basement wall as it meets the bottom plate of the stud wall on the exterior of the house. There should be a foam insulation sealer between the two surfaces to prevent bugs from entering the house and also to prevent cold and hot air from seeping into the house.
If there is a gap, as in most new home construction, you will have some problems later on. The correct procedure is to use a sill seal consisting of 3/8 inch thick foam insulation stapled to the bottom of the bottom plate of the exterior stud wall.
Another advantage for the building aspect of the building vs buying a home issue is that you do not have to concern yourself with this item like you would when buying a home. As you can see, there are many aspects of building vs buying a home issue that you have to consider.
You should hire a home inspector to check out the entire house before buying a home. He will check out the roof, foundation and mechanical trades as well as the fireplace and chimney. It is well worth the investment. Potential problem areas will be exposed.
If you have not resolved the building vs buying a home issue yet, this is one of the new home buying tips that you take seriously. When you build a home, you have inspectors provided by others who inspect the construction as it progresses.
Your selection of a new home should take into consideration the location. Is it in an area that will appreciate in value? Is it close to schools and shopping? Is the surrounding area well maintained? Is there a homeowners association and what are the covenants and restrictions of the subdivision. This is an important consideration when considering the building vs buying a home issue.
You can get some idea of whether the subdivision is increasing in value by looking at recent sales in the subdivision. Are the values increasing? You may want to consider employing a buyer’s agent if you feel uncomfortable researching all of this information.
Realty companies now have buyer’s agents on staff who are supposed to be working on behalf of the buyer. They also may be able to provide additional information pertinent to the building vs buying a home issue.
Of course you can narrow your search for a new home by utilizing the internet and you can see a virtual tour of many new homes that are available. Once you establish your parameters, you can narrow down the list of homes to consider based on location, number of bedrooms, baths and whether it is a ranch, two-story or cape cod.
For in-depth Home Buying Information and Tips, please check out BrandNewHomeBuyer.com for additional articles and resources regarding new home buying.
You can check out the new homes that are available in your area by researching your local Sunday edition of the newspaper or new home magazines that you can pick up at the grocery stores. Also, you can check out www.newhomesource.com to see what is available in your area.
You can also refer to the individual builder’s websites. If you find a very flexible builder, you might give a second thought to the building vs buying a home question.
Another one of the new home buying tips involving the building vs buying a home issue is to check out the financing options offered by the builder. You can save a great deal of money here. Many new home builders offer to pay a portion of the closing costs and can offer some attractive financing terms if you use their lenders.
You can almost purchase a new home with no money down. Yes, I said almost. There are numerous financing options available to you. You have to do your research to find them. This is certainly an important factor to consider when buying a home.
So far, our building vs buying a home has concentrated on new home construction. Before we leave this subject let’s consider two more items that relate to the reputation of the builder.
First, what type of warranties does he offer. Does he go beyond the standard one-year warranty to maybe a 10 year HOW (Home Owners Warranty)?
Second, does he take care of “punch list” items in a timely manner? These are items that have to be fixed within one year from the closing on the loan. This will give you an idea of his customer service policy.
Check with the neighbors to see if they are happy with him. Should you change your decision regarding building vs buying a home?
When debating the issue of building vs buying a home, you may want to consider looking at existing used homes. You can usually buy a larger home at a better price than you can with new home construction. However, you end up buying a home in an “as-is” condition. You do not have the choices available to you that you have in new home construction. You also will not have the financing options available that you see with new home construction.
One step that you must do before buying a home, especially a used home, is to hire a home inspector to thoroughly inspect all areas of this used home. There are too many things that could be wrong with the house including a failing foundation, electrical outlets wired backwards, leaky windows and doors, a septic tank that is about to fail, and a furnace and/or water heater that is about to fail. It is well worth the investment prior to actually buying a home.
If you decide to hire a buyer’s agent, be sure that he/she is willing to show you all the homes in your price range and not just the ones listed by his/her realty company. I had that experience and will not go through that again. They sometimes drive by some gems that you would consider. This is all a part of buying a home.
One way to narrow down your research is to use the internet. Check out www.realtor.com and look for new and used homes in your area. Then go look at the houses that you like and make a visual check of the exterior and the location. Remember, this is your largest investment that you will make and you do not want to make a mistake in your decision regarding building vs buying a home.
If you are a first time home buyer, you will not be debating the issue of building vs buying a home . Your choice should be to buy an existing home whether it is new home construction or a used home.
Single women and young adults are not usually equipped to handle the experience of building a new home. However, you have more options to consider. For example, you can choose between single family homes, condominiums, townhouses, foreclosed homes, and HUD homes. Please click on this link above for detailed information regarding buying your first home.
A word of caution. Be careful when you determine how much house you can afford. As mentioned above, it is a variable that you must address when considering the building vs buying a home issue. You can use the payment calculator in your local Sunday newspaper or one from your lender, but be sure that you can live with the mortgage payment. Remember, it includes principal, interest, taxes and insurance (PITI).
There are lenders promoting no interest loans now that can come back and hurt you later. The ideal mortgage is a fixed rate mortgage for either 15 years or 30 years. There are no surprises with this type of mortgage. Buying a home includes financial considerations as well.
There is a book that might be helpful to you. “Home Buying For Dummies” is available at your local bookstore or through Shop at Amazon.com If it is anything like the other books in that series, there will be a wealth of knowledge available to you. You need to arm yourself with all of the available information to make the right decision regarding building vs buying a home.
In most cases, you will be able to find a home with a mortgage payment less than paying rent. Mortgage payments are an investment. Rent is gone forever. There are several financing options available to first time home buyers and doing your research will benefit you in the end.
Buying a home with bad credit is a subject that is discussed repeatedly because of the mess that many of us have created with our credit. There is no building vs buying a home debate here.
Your choices are restricted when you have bad credit. However, you are not totally locked out of the home ownership market. There are two possibilities for buying a home that will be presented here.
The most common method of buying a home with bad credit is the lease-purchase with an option-to-buy program that is popular. It involves leasing the home for a period of one to two years with a portion of the rent going towards the down payment. This is agreed upon by both parties involved.
Then there is an option whereby you can purchase the house at a specified and agreed upon price. The price is usually established at the time that the lease-purchase agreement is executed so there is no problem when the time comes to exercise the option.
You are under no obligation to purchase the house. However, you have an option to do so if you choose. There is a fee paid to the seller for this option because he is removing the house from the market and is not trying to sell it. Of course, if you decide not to exercise the option to purchase, you forfeit the fee.
The terms for a lease-purchase agreement vary according what you can negotiate with the seller. This is a great way to repair your credit while locking in the opportunity to purchase a home.
There is an outside possibility that you could find a new home that has not been occupied and has been sitting for awhile. This could really inject another viable option in your consideration of building vs buying a home.
I am almost reluctant to share this second method of buying a home with bad credit because this was one of those weird financing techniques that came out of California in the 1980s. It is called “Equity Share” method of buying a home. It differs from the lease-purchase method because there is no leasing involved.
You find a close relative, friend or investor to agree to purchase the home together. Both of your names will be on the deed of ownership. Your relative, friend or investor agrees to put up the down payment on the home and you agree to make the monthly mortgage payments. The other party receives the tax benefits of interest on the mortgage and the real estate taxes that are paid. Both of your names will be on the mortgage, but you are really using the good credit standing of your relative, friend or investor to obtain the mortgage.
After an agreed upon time, say three to five years, you have repaired your credit and you are ready to go on your own, you sell the house and split the profits from the sale. The other party realizes the tax benefits and a generous return on his investment. You build up your credit and receive a portion of the profits that you can use to purchase another home on your own.
Some people took advantage of this financing technique by inflating the value of the home and it caused problems on the resell. If it is done properly and honestly, it can be a viable alternative to buying a home with bad credit.
You should have a wealth of information to review and consider before you make your final decision regarding building vs buying a home. Consult with professionals when necessary to assist you in making the right choice.