Housing Market Presents a Difficult Decision

April 25, 2012 / Russell Legato, Residential Property Analyst

Many people find it hard to make this decision. Is it better for me to build or buy a house? The housing market is starting to pick up. There are existing homes with favorable listing prices. A mortgage can still be obtained at a surprisingly low rate of interest. There is what you may call a surge of activity compared to the last five years.

Housing Market Presents a Difficult Decision

This is an important decision. It effects how much you spend on a home. But, it also affects whether you will get the exact home of your dreams or not. Price is a major consideration. There are still bargains to be found among existing houses and, especially for those first time buyers, this may be the optimal choice.

Regarding building a home to your specific taste, it will fulfill a dream you may have had for years. There are even times, during the building process, that you can add or delete a portion of your original plan. This is not always the case with tract houses. These are groups of homes that are built in very similar style, often in an entire neighborhood or subdivision.

These are more economical to build because of the similarities keeping the final selling price down. Another consideration is energy costs on a new house versus an older, already built home. Insulation will be better, making the family more comfortable and monthly bill lower.

Disadvantages include having to purchase the land in addition to paying new construction costs. You may have to wait longer to move in. Often the estimated finish date is moved ahead due to unforeseen delays in construction. For example, the weather can cause a significant delay in working conditions.

Experts, when assessing the existing conditions, for example, availability of homes at low listing prices, think the average person can get more home for their money when purchasing one of the homes already on the market. The woodwork and other charming features to be seen in older homes cannot be duplicated for any affordable kind of money today.

Therefore, consider the existing housing market. Adding to those reasons are, the need to buy appliances for the newly built home, the final interior decorating such as painting and the exterior finishing touches such as landscaping. It is a much better financial decision to buy an existing home.

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