Looking for a new home is a daunting prospect. With so much time, energy and money wrapped up in a decision, accompanied with the notion that this place may one day be your home, close consideration is a must before beginning this journey. But one of the first and most important decisions you need to make before you begin is if you want to purchase an existing home or build a new one. There are a number of factors that go into making this decision. Below are a few major ideas to keep in mind as you start to decide which home-owner path is right for you. hus

Location:

One of the most immediate concerns regarding your future home is where that home may will be. Do you want to live out in the countryside or maybe you prefer the suburbs? This will help narrow down your home building and purchasing options. In the suburbs, it may be harder to find the space to build a new home but there will be more existing homes for sale. In the suburbs, there may be fewer open lots and you may have to find an older home to knock down in order to build a new residence. But if you’re out in the countryside, it may be easier to find the space you want while the land prices may be more favorable for new construction. Knowing where you want to live can help determine what kind of home investment is right for you.

Timeline:

Another major factor to consider is how much time you have available before you need or want to move into your new home. Understandably, it can be a much faster process to purchase a pre-existing home than starting new construction. While searching for a home and negotiating terms of sale can be a complicated and lengthy process, it will likely still take less time than building a home from scratch. If however you have the time to wait for your new home, construction may be an option worth considering.

Cost:

Obviously, the most important aspect to consider in home purchasing and construction is cost. Having a firm understanding of your budget and what types of mortgages or loans are available to you will help give you a clearer picture of what is financially possible. Typically, an existing home will be a cheaper option than new construction. While there are plenty of costs associated with buying a home such as the list price, realtor fees, inspections and repairs, it can still come out to less than new construction. Moreover, you know ahead of time how much money the house will cost you. With building a new home, prices can shift as construction moves forward. From permits to RT crane rental costs to weather-related delays, building a new home comes with a certain degree of financial uncertainty. However, new construction affords you with greater decision-making power and control over the specifics of your home.