Building a brand-new home may seem like a dream come true. You get to pick your ideal layout and have a say in each design element. However, this process can be stressful if you’ve never done it before.
Here are a few pros and cons of building a house that will help you decide if this option is right for you.
Pros of building your own home
The biggest pro of building a home is that anything is possible: an in-law suite for when the family visits, a decked-out office for working from home, a farmhouse style, and so much more.
Start with a vision board. Check out websites like Pinterest and drive around snapping photos of homes that catch your eye. Think about how many bedrooms and bathrooms you need plus any bonus spaces you may want to live as comfortably as possible.
Choose where you want to live. Have you always dreamed of living by the water or having no neighbors in sight? Building a home lets you set up your residence just about anywhere you want. Talk with a builder before making a land purchase. Builders will help ensure the land is zoned for residential development and identify any issues such as connecting to utilities or developing the land before starting the build.
Another pro is everything is brand new. This means maintenance and repairs will be minimal or even nonexistent for a while. This can save you headaches and thousands of dollars!
Cons of building your own home
Building is an expensive investment and can cost more than buying a preexisting home. Several factors go into this expense: location, size, complexity, and design elements.
Usually, a builder can help guide the design process by starting with a schematic design to give you a perspective and an idea of a budget for what you want.
Construction loans can be complicated. They tend to be a little more involved than getting a traditional mortgage on a preexisting home. You’ll likely need a 20% down payment along with the usual financial documentation, project plans, costs, land value, and more. They’re typically short-term, covering the duration of the build. Once the home is built, you can pay off the balance or convert to a conventional mortgage.
Another con is building a new home takes longer. On average, it takes a minimum of three months to build a simple house, that’s if everything is planned and runs smoothly. Sometimes it can take much longer.
Talk with a builder and get a schematic perspective on what design you want and what it’s going to cost you. Set apart the pros and cons and make a decision based on your time frame and budget.