Building a New House – The Pros and Cons

Market Competition

Pros:

With the real estate market still booming, the national average for the number of days an existing home is on the market is only 30 days! That means you have to be ready to jump as soon as a home is listed for sale, and with that level of competition, your offer better be a sweet one. When you build a home, however, the competition component decreases considerably. Fewer people are in a position to build a home, so there are less people competing with you for land, building packages, and development building sites.

Cons:

Because building new homes means the necessity for available land, it might be tougher to find a parcel in your desired town or neighborhood. Housing developments may not be as plentiful in your desired area either. When you do find a development you like, the likelihood of there being a set realtor, builder, and home design that you must work with is high, so you may need to sacrifice the professionals you prefer to work with for the entities doing the development.

Whereas you can negotiate sales price on an existing home based on issues such as work and upgrades needed, when you build a home there is much less negotiation on price. Build packages are designed with very set margins, and even with a custom-built home, your contractor can only do so much to get you the details you want and still make the profit margin they need to stay in business.

Customization

Pros:

Customization of the house style, features, and other details is obviously a huge pro when you build a house. You can select and personalize all the details of your house when you build it from the ground up – the floorplan and layout, elements such as woodwork and flooring, and fixtures including appliances and door knobs. You can customize any and all of your home’s details to fit your lifestyle and tastes. The rooms can be painted to your preferred colors before you move in, and you can even have the landscaping completed to your liking immediately.

Cons:

When you purchase a build package in a development, you may have more restrictions for customization choices. The timeframe for making different selections is also usually very tight. The developer/builder is working on multiple properties at once, and time is money for a residential builders. You will likely have some opportunity for customization, usually in the form of options and allowances (a set selection of finishes within a specific budget that your purchase includes). Expect options including color choices (although they may be limited), flooring options, and certain finishes and landscaping.

For some, building a custom home represents too many decision to make. At every stage of the build, you will need to decide on design details, select finishes, and decide how to handle changes as they occur. This can be too much pressure, and require way more time and energy than some people have to give. Building a new home is a project – so be sure you are ready to manage all those decisions.

Timeframe

Pros:

When you build a home, you won’t be able to move in right away. The average new construction home take at least seven months to complete, and the more customized the build, the longer it will take to complete. You will have to plan time to do research and meet with your architect and/or builder, but you will have the opportunity to think through design decisions and make ones that are best for you and your family. You will have time to truly create the home of your dreams.

Cons:

The additional time required to move into your new home can be difficult for people. If you have sold your previous home, you may have to find temporary housing, and it can leave a family feeling displaced. It takes time to find specialty finishes, create custom woodwork, and achieve the finer nuances of design that you might want. The level of frustration with the process timeframe can build, and be too much for some people (and some couples) to endure.

Financial Implications

Pros:

If you are planning to build a new home instead of purchase a home already built, you can research the projected costs of the type of home you plan to build and save accordingly. You might have some extra time to find just the right loan package, and even wait for the interest rates to drop.

Cons:

Because of the extended timeframe before your new home is ready to move into, building a new home can be more costly. You will essentially be maintaining two homes during the building project, one that you live in, and one you are paying for as it is built. You need to be sure you have the financial stability to handle these extra living expenses, as well as the likely overages in the budget when you make upgrades (you will make upgrades!).

Emotional Resilience

Pros:

Building a new home can be an incredibly rewarding process. You can exercise all of your creative abilities into designing a truly inspired home built just for you and your family. Because you have built it from scratch, and participated in every step of the process, it will be unique to you, unlike any other home.

Cons:

Building a new home from the ground up isn’t for everyone. The timeframe can feel as if it is dragging on, making decisions about so many details can get frustrating, and communications and negotiations with your builder and other trades can get exasperating. Building budgets most often go over budget, due in large part to decisions you will make for unplanned upgrades and changing your mind mid-stream. These changes are par for the course and to be expected, but if you don’t plan for this budget overage allowance, it can add to the stress of building new. Because it is such an emotionally charged project, relationships will either get stronger or suffer. Being prepared ahead of time for the many challenges of building will go a long way to maintaining healthy relationships throughout the process.

At Nautilus Construction, we specialize in building custom homes. We work in partnership with our clients to design the home you are envisioning, and our expansive resources in the design and custom fabrication areas allow us to handle all the stages of building a house. Please contact us to discuss your ideas – we’d love to help you build your dream!