Is it more beneficial to buy an existing home over building a new one?

When thinking of moving one of the first few questions that comes to one’s mind is whether to build a brand new construction or buy an existing home. There are some major advantages to buying an existing home and those advantages can certainly outweigh the advantages of buying a new construction.

1.    The first major advantage of buying an existing home is the amount of time overall from start to finish that it takes to find and move into your new property. If you are building a new construction, the time frame of getting approved for the mortgage, picking out the home, the build process, and then move in is far greater than if you go with an existing home.

2.    The next major advantage of buying an existing home is the overall cost of the home. The overall home cost potentially could be 20% higher if you are building a new construction versus buying an existing home. This is due to the fact that developer costs usually need to be added into the cost of a new construction, homeowners’ fees for the first year must be paid, and any major upgrades also add to the increased expenses for building a new construction.

3.    Another great advantage is the possibility of finding a home in the exact area you are looking for. Many times new constructions are in outlying more rural areas and not near downtown cities or established neighborhoods. Also take into account the school district that is most desirable for you. That may mean buying an existing home in a particular neighborhood.

4.    You might just stumble upon the gem you have been looking for with an established home. Newer constructions are built with only a few floor plans and most homes are pretty similar. With an existing home you can find a home that might be perfect in terms of what you are looking for in regards to floor plan and character. For example, you might need a four bedroom home with four bathrooms instead of the standard three bathrooms that many newer constructions have.  

5.    In addition to the advantages above, an existing home may have been built with superior materials. Brick homes as opposed to stucco, ceramic tile as opposed to linoleum, and sturdier roofing materials are all examples of how existing homes might be built sturdier.

6.    Then there is always the possibility of renovating the existing home to suit your needs. Many times renovation costs can be included in the mortgage application. This will give you the opportunity to upgrade appliances, knock out a few walls, or even just simply change the color scheme of the paint. All of which can be worked into the mortgage loan.

7.    Last, but certainly not least, is the fact that many existing homes already come with some pretty nice upgrades. Some of these upgrades can include a pool, other possible buildings on property such as a storage shed or mother-in-law suite, a finished room over a garage, or even a garage that could have been converted to a sun room or patio.

With all of these great advantages to buying an existing home, now is the time to apply for that mortgage. If you would like to apply for a mortgage for an existing home, contact us at Mortgage Options Inc. today!

Mario del Pino

NMLS# 938420