Kitchen Table Real Estate:
Should you BUY or BUILD?
Joseph Kateb
Okay, so you have been looking for a house in the Sioux lookout area for some time now. But there isn’t much on the market, and when what you’re looking for does become available, it is sold right away. Now you start thinking about having a house custom built.
Each path has its advantages and disadvantages. Let’s take a look at both sides.
Finding an existing home in Sioux lookout can be tough with homes flying off the market so quickly. But finding a builder available to build your perfect home can also be tough.
You can move into your new, existing house right after closing at the lawyer. There are many factors that will affect how long it will take to build a new custom house and it may vary from 9-14 months if you did your “homework” and plan well.
Managing all the details that go along with building a home takes time and effort. Buying an existing home is less stressful than building one. You will not need to purchase the land, worry about well and septic system along with all the permits. Deciding on a home design, flooring, cabinets, fixtures, paint color, interior and exterior trim … Can be exciting and/or stressful.
In general it’s cheaper to buy an existing house. According to the National Association of home builders, new homes are more expensive per square foot. Plus you have to pay HST, which makes the final price higher. Also new homes normally don’t come with exterior features like decks, fencing, landscaping, driveway, which can add more to the cost.
Seriously, there is nothing like owning something that’s brand new like a car or a home. And everything is clean and spotless, every detail, every appliances, molding, fixture was put there as per your specification to accommodate your special needs and desire. Besides being so spacious, it’s also energy efficient, so you will save money every month on energy expenses. Normally, a house recently built is easier to resell and has a good resale value.
The mortgage process for the construction of a new home is more complicated and often more expensive. What the bank doesn’t want is to see you not finishing the construction of the house. So you will be required to have more money at hand and you will need to have a good credit score. You will also need to purchase your own land to build your house on.
With all that said, every buyer is different. The biggest drawbacks to building a house tend to be the higher costs and longer timeframe, both of which can increase throughout the home-building process. The best way to choose the option that is right for you is to plan in advance and to talk it over with an experienced real estate agent. Your agent will help you decide whether building a house or buying an existing home will suit your needs best.
