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2016-02-23 15:14:42
Buy vs. Build: The Pros and Cons of Each

If it's time to stop paying rent and start building equity, you are likely asking yourself an important question: Should I look for a 'used' house or build a new one? A recent survey notes that, for the same price, two of five Americans prefer new.

 

If you're buying a home in Utah, you'll want to weigh the pros and cons of buying vs. building.

Shopping for a house can be time consuming and confusing. The best way to begin a home search is with a list of items that you consider 'Must Haves' and a second 'Wish List,' features that would make your heart sing. Both are important, whether you're looking at existing homes, talking to builders, or just exploring options.

Buy Existing: The Pro Side

  • What you see is what you get, although remodeling may be an option.
  • If the house is well-maintained and landscaped, move-in costs are minimal.
  • You can pick a neighborhood based on specific location, amenities or desirable features.
  • Quality and condition are apparent, or can be determined.
  • You might be able to negotiate a great deal.

 

On the other hand, chances are that no existing house is going to include all the features you might want. Be honest about what you're willing to give up without suffering from 'buyer remorse.' If it's your first house, you can consider it as a learning experience. Living in your own home will help crystallize your ideas about features that are truly important. And because the average American moves about 11 times, 'moving up' is a definite possibility.

Building New: What's Not to Love?

The biggest drawback to building is the time it takes. Whether you contract with a builder for a stock design in a brand new development or work with an architect on a custom plan, building new can span many months. You may spend as much time getting the plans right as it takes to actually complete the construction. You will have many decisions to make along the way in terms of materials, finishes, colors, fixtures and appliances. It is, in some ways, a full-time job.

Then there is the cost: Price increases, extras, adjustments and change orders during construction can all add up. Be prepared for contingency costs that might be substantial if you don't have a way to control your building 'appetite.'

 

The Pro Side of Building

New is new; and modern products are not only stylish, but they are apt to be sustainable, durable, energy-efficient, healthful, designed to conform to modern codes and enhanced performance standards, and exactly what you want.

The trick is in knowing exactly what it is you want.

Either way, though, buying a home in Utah is a good investment, for your present and for your future. Equity-building through real estate is a way to assure financial security. The market is strong and prices are trending upward. Interest rates are still low, so the timing is right; owning your own home is still a large part of the American Dream.

 
Blog Archive
2016-02-26 10:35:24
5 Things to Look For in a Utah Realtor

2016-02-23 15:18:05
The Path To Homeownership

2016-02-23 15:14:42
Buy vs. Build: The Pros and Cons of Each

2016-02-19 17:55:04
With or Without a Realtor: Pros and Cons

2016-02-16 15:29:04
Prequalification vs. Preapproval: What to Know

2016-02-09 18:01:02
What Credit Score Is Needed to Buy A House?

2016-02-04 14:38:51
How to Find Out What My Home is Worth

2016-02-02 15:09:32
Am I Ready to Buy a Home?

2016-01-28 13:50:41
How Can I Prepare to Buy a Home?

2016-01-26 10:50:48
Will I Lose My House If I File Bankruptcy?

2016-01-21 15:32:18
3 Things Most Realtors Won't Tell You


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