A momentous stage in your life has finally come: it’s time to pack up and move to a new home! Whether you’re purchasing your first home or your seventh, this process never gets any less exciting! There’s something about moving to a new space and making it your own that is unlike any other experience.
When you choose to purchase a new home, you typically have two options: search the listings to find a home for sale that matches what you’re looking for, or work with a builder to build you a home to suit exactly what you envision.
Both of these options have their benefits and limitations, and there’s no “best way” to go about finding a new home. However, the main question that comes up when comparing the two options is: does it cost more to build or buy a house? To help you come to a decision, we’ve outlined the costs and money-saving aspects of both types of real estate.
Building: Money-Saving Perks
You choose what you pay for: When you take the time to research and build a custom home, you have the advantage of choosing your features and fixtures. This could include everything from the exterior features like brick colour, siding style and shingles to the interior fixtures like cabinetry, flooring and lighting. Like most builders, Sifton offers standard features and upgraded features, and it’s up to you to choose which ones you like best and, more importantly, which ones will keep you within your budget.
Building: Extra Expenses
Initial costs of labour and materials: There’s a lot that goes into building a new home: the exterior structure, fixtures and furniture, appliances, flooring, tiling, and so many other little details that you’ll find add up quite quickly! All of these costs all at once can seem like a lot and make many homebuyers second guess the new build option, but it’s important not to overlook how these selections may help maximize your investment and contribute to the overall value of your new home.
Schedules and timeframes: Choosing to build a home from the ground up is going to take a little longer than picking out a home move-in ready resale home. The builder will give you a timeframe of when the house is expected to be completed, but there’s always the chance of delays that are out of your control. Communication with your builder is key to ensuring you have clear expectations.
In some cases, you can pick from homes that have been built to a particular design, and because the process is well underway, the timeframe is significantly reduced. With Quick Closing homes from Sifton, you can enjoy a new build home on a move-in ready timeline!
Landscaping design: Building companies typically do not handle the landscaping of new developments, often going no further than laying sod and perhaps a simple front garden. Once your home is complete, you’ll have a beautiful new home to live in, but you may wish to add a bit more garden to enhance your yard. If you’re looking to beautify the front walk to match the house, you’re likely going to need to invest some additional funds.
Resale: Money-Saving Perks
What you see is what you get: When you purchase an established house from the real estate listings, you know exactly what you’re paying for. You’re given a total cost for the house and that’s that. You will be able to determine right away whether or not you can afford that house. With the proper inspection, you’ll also be aware of any repairs or renovations that’ll need to be factored into the budget as well.
Complete and total convenience: For the most part, when you sign the papers on a resale home, you know exactly what will happen next. You agree upon a move-in date, you have your mortgage plan set up, and you know when those payments are going to start coming out of your account.
Get ready to negotiate: Any realtor will tell you that there is often wiggle room on the set price of a house. Unless you’re competing with a high number of potential homebuyers, you have the option of negotiating a lower price which could save several thousand dollars.
Resale: Extra Expenses
Maintenance, repairs, and renovations: Sometimes, you’ll come across a house with extreme potential! But, to reach that potential, you need to be willing to Invest the extra dollars into it. Older homes in particular have a great deal of wear and tear and will require a little more TLC that costs not only money, but time and effort.
Appliances, utilities, and fixtures: When you purchase a resale home, you’re also purchasing the charm and quirks that come with the structure. This could include seriously outdated windows or a well-loved washing machine in the basement. If you’re not particularly keen on drafts and shaky noise-makers, it might be time to upgrade. New appliances can add quite the added expense to your newly purchased home.
Appraisals and inspections: Every home needs to pass an inspection before you can safely take ownership. Sometimes these inspections can come with a hefty price tag, especially if mold and mildew show their ugly faces at this time. Houses that have been standing for more than a few years have often encountered a problem or two and will need some extra (often expensive) love and care.
So, the big question: does it cost more to buy or to build a house? The reality is, each house is different and you’ll run into a significant price tags no matter which route you choose. Take the time to do your research, search the listings, interview builders, whatever you have to do to make sure you’re getting exactly what you want out of such a large and important purchase.