9 Reasons To Build Vs Buy on Resale Market

When you begin searching for a new home, does it make sense to build vs buy? While speaking with customers over the past few months, many started their new home search with plans of purchasing an existing home on the resale market. 

However, many of them became frustrated with the process of touring existing homes that were new to the market and then needing to make a quick offer based on low inventory. The results were wrought with bidding wars, overpaying, negotiating on inspections, negotiating again, and ultimately walking away or losing the transaction after realizing the investment required to bring their “new” home up to current standards - whether those standards were decorative preferences or structural concerns.

If you aren’t considering new home construction, here are some things to keep in mind:

1. You’ll be the first to live in that home! A new home has never been occupied by anyone else (while this seems obvious, the thought of a home only belonging to you is important to many).
2. You can select your own layout, features, and interior selections and truly make the home uniquely yours (and without remodeling expenses, and living with a project).
3. Never find yourself in a bidding war! We understand today’s market and that many people are bidding over the asking price to ensure you “win the war” only to find you lost it - forcing you to start from scratch (as well as feeling the disappointment). You could even overpay for a house because someone drove up the asking price.
4. Select the location and lot that are perfect for you! Want to be closer to work but can’t find a home for sale where you want to be? Don’t want to move your kids out of their current school district? Or are you looking to increase your entertaining space by adding a pool for the kids or a walkout basement with a space to host guests? Your preferences and choices aren’t just limited to the interior finishes.
5. Building a home can allow you to stick to your desired timeframe. You won’t be at the mercy of the market or trying to ‘get lucky’ finding a home within your desired timeline. This also will give you time to sell your current home, which can sometimes take weeks, if not months.
6. Even if you buy a “newer” used house, you may not gain the benefit of updated energy efficiencies, building codes, and manufacturer warranties that true new construction offers and you’ll end up spending more money in the long run.
7. You get peace of mind that there will not be issues with your home inspections, repairs, and renegotiating the transaction due to existing defects that can cost thousands of dollars.
8. There are flexible financing options. You can lock in your interest rate up front with a construction loan, or purchase with a conventional end loan, giving the ultimate financial flexibility.
9. One loan, one payment, one interest rate. You’ll receive the benefit of one payment at historically low-interest rates, rather than paying out of pocket or getting a second mortgage for all the desired “updates and improvements” needed for existing homes.

There are many reasons why you should buy vs rent your new home. Construction is a popular option, but it might not always be the immediate reasons you think! We invite you to click the link below to see our move-in ready, in construction and coming soon homes.