Build New vs Buy Existing
Build new? Maybe.
Many home buyers are considering it.
With the current real estate market in Denver, Colorado it may make sense. As the owner of GMH By Design, a residential architecture practice, it’s been my experience that building new vs. buying an existing home has some clear advantages.
Here are 7 reasons to build new instead of purchasing an existing home.
- Control – Obviously money will be a deciding factor. But when you build a house you have control over what building materials are used, if the house will include sustainable systems, and the orientation of the house. Most importantly, you decide what the layout of the house will be.
- Savings – Building new will require large amounts of supplies. This can be intimidating. But one benefit of ordering large quantities of building materials is the potential savings and discounts from suppliers.
- Insurance – Home insurance costs are higher with a preowned home than with a new construction home. Existing homes may come with features that are out-of-date, increasing the cost of insurance.
- No Remodeling Costs – When looking at existing homes you are always having to compromise on the layout of the house. Or you need to factor in remodel costs. If you build new these costs are non-existant. Maybe you can’t afford to build the exact house that you want. But with a little foresight, you can plan for the future. This will allow you to focus your buying power in the right place.
- New Appliances and Fixtures – While you can always purchase new appliances for an existing home, they need to fit the space provided. If you build new you can plan the space accordingly. You can select the appliances you want and build to fit. Fixtures like faucets are inexpensive. But when you start talking about replacing the existing pink toilet that gets expensive. And then you need to replace the matching sink and tub.
- No Bidding Wars – As mentioned above the real estate market is very competitive in Denver and surrounding cities. If buying an existing home, you are bidding against others buyers who may have more to spend or be bringing cash. There are no competitors when you build new.
- Choose a Contractor – In most cases, when building new, you get to select your contractor. In essence, you’ll have the contractors bidding for YOUR project.
I’m interested to hear other reasons why building new is better than buying existing.
If you have any suggestions feel free to comment.