Homebuyers spend a lot of time searching for and designing the “perfect home” before signing contracts or laying down funds.A house hunt will usually consider the following factors: location, price, market trends and homeowners association fees. A buyer will usually have a list of specific requirements (the things they must have) and wants (“the features they would prefer but can live without, if necessary).Although there are many important decisions to be made when buying a home, buyers must first decide whether they want to buy an existing house or build one.Each route has its pros and cons. Let’s take a look at each side.
Five Benefits to Building Your Own House
You can save money and have many benefits by building a new home.
These are the benefits of building your own home.
- Ask for discounts on materials: When you work with suppliers like your local lumberyard, ask for a builder’s discount. HR Construction Solutions, a home-improvement expert, says that some suppliers will offer more incredible discounts for larger purchases. For lumber and millwork, expect a 10% discount. Lighting fixtures will provide higher savings.
- All things are new: There may be hidden costs when you move into an existing property. You might have to make significant home improvements that were not obvious during the purchase phase. For example, if you buy 1,600 sq. A Bangalore home measuring 1,600 sq. ft. and you need to paint the exterior, it will cost between $1,900 to $4,000 according to a survey. This online resource provides information about the house and home.
- Annual savings: A brand new air conditioner unit can be shaved for a few hundred rupees annually. According to HR Construction Solutions, you can expect to spend between a hefty changeable amount on a new unit if you buy an existing house.
- You can control the design of your home: This will ensure that everything is exactly what you want. A bathroom can be a cost-saving option for those who buy a new home. According to a survey, it can cost around $18,000 to renovate a full bathroom.
- It’s easier to entertain: New homes often offer an open floor plan for large groups. Older homes often have design choices that aren’t sensible, such as going through a bedroom to access a shared bathroom. This is not an option for newer homes.
Five Cons of Building Your Home
It’s possible that things will not go according to plan, even when you build a brand new home. Building your home can be costly, whether you have to wait for permits or face other delays.There are a number of websites you can find that help homeowners sell their homes. “I can’t tell you how often they have seen clients buy lots to build their home, give an architect a budget and then bid on the plans only to discover that the cost of building the house is between 30-40 per cent higher than the budget.
These are the disadvantages of building a home.
- Time: A home can take between four and six months to construct. It’s a long wait, and things could change while you wait to move.
- Limitations: There might be limitations to the type of home you can build in your budget. It is possible to spend a lot on upgrades and making many changes.
- Construction loan and permits: If the builder doesn’t do it for you, you might need to take out a construction loan. It’s essential to learn what is required to ensure that everything meets the code, even if the builder handles permits. You can hire an inspector to ensure that the job is done right the first time. This expense will be added to the price of building a house.
- Legal considerations: If there is a problem with your home-building process, the agreement between you and the builder could limit your rights. You may need to sue the builder. If you have any questions, carefully read the documents and speak with an attorney in your state.
- Temporary housing: While you wait for your home’s construction, you might need to live in temporary accommodation. This can lead to additional expenses, such as hiring movers or renting storage space. A few known websites provide information to consumers about products and services and estimates that storage unit rentals can cost between $40 and $225 each month, depending on their location.
Five Pros to Buying a Home
To determine if purchasing a house is the right decision, it’s essential to understand the pros and cons of this purchase.
Here are some of the benefits of buying an existing house:
- Possibility to flip your house: If you purchase a home that has been renovated, it is possible to convert it. This will allow you to transfer profits to a better home. A RealtyTrac report on single-family house sales for Q3 2016 showed that the average gross profit from completed flips was 47.1 per cent of the original purchase price.
- You can delay upgrading costs: A pre-existing house allows you to take your time and make improvements, allowing you to better budget.
- Ability to move quickly: Most buyers can move in immediately after closing. You don’t need to worry about temporary housing or waiting. You can stay in the property and get your renovation work done without any disturbance.
- You are familiar with the area: If you buy a house in an existing neighbourhood, you will already be familiar with the property values, neighbours and other details. You won’t have to think about the nature and other things of the people residing near you.
- It’s easy to see: The floor plan and layout of an existing home can be seen. It can be hard to visualize the structure of a home and make sure you can afford it.
Five Cons of Buying A Home
There are some downsides to buying a pre-existing house.
There are some cons to buying a home rather than building one.
- Buyer’s regret: Learning and accepting the peculiarities of the house you buy is essential.
- Upgrade costs: Moving into a house and making upgrades can be costly and time-consuming. Remodeling.com reports that even the most basic home remodelling project can be expensive. In 2016, the average cost for a major kitchen renovation was $119,909
- Layout: Preowned homes are stuck in their layout.
- Decorating costs: In addition to paying closing costs and other upfront costs, it might be necessary to spend some time and money updating the flooring, paint colors, or removing wallpaper. According to HomeAdvisor data, the average cost of a home repainting job is between $938-$2,442,
- Preowned homes have higher home insurance costs: Your home insurance will cost you more than a new one. New homes have modern and updated features, which is not the case with pre-existing properties.
You may decide to build even if your initial goal is to find the perfect property. You may choose to build but later find that an existing house is better suited for you. In either case, working with a qualified and experienced professional- whether a real estate agent or a general contractor like HR Construction Solutions who provides in-house turnkey construction solutions in Bangalore can help ensure the process goes as smoothly as possible.