Which Choice is Best for Me in 2022?

Today’s real estate market is seeing huge jumps in value and high demand from homebuyers and investors alike. Of course, homebuyers like the idea of moving into an already built home, but sometimes buying an existing home just doesn’t work either because of price, location, or property requirements. 

There are positives and negatives to both established homes and developing a home from scratch. Which option is right for you depends on your budget, property requirements, and perhaps most significantly your timeline.

Buying an established home (resale)

The resale market covers most of the inventory on the market. As a result, buyers get the advantages of convenience, cost and the choices from 100-year-old charmers to near new construction. These homes typically have mature landscaping and are complete from mailbox to back fence. In addition, buyers benefit from finding a property in their desired location near their preferred school, work, or other family.

When purchasing an established home, buyers will have a wish list of specific needs and wants. This list can be challenging to satisfy existing homes, particularly when the buyer’s requirements are extensive. The biggest disadvantage of buying an established home is that the layout and finishes may not be exactly what you want meaning buyers have to make compromises. Renovation costs quickly become costly with challenges like asbestos, lead paint, mould, or dated electrical.

With that in mind, the number one advantage to buying an established home in today’s market is that the cost is usually lower than buying land and building a house. 

Buying land for development

Building a new home may not have move-in ready convenience, you get the luxury of customization. It also gives you the convenience of selecting your ideal layout and finishes. Buyers are more likely to get exactly what they want in their home with new construction.

When you’re looking for land to develop a home, you’re on the hunt for a project. First, you need to find the right lot. One of the downsides of building versus purchasing an established build is that buyers often struggle to find land in their preferred area. Established neighborhoods rarely have vacant lots available for development. Therefore, you may have to settle for a less desired location. 

Another benefit of new construction is essentially the newness. Newly built properties are constructed to current building and energy regulations. As a result, they have energy-efficient appliances, water-saving toilets, and higher quality insulation. Therefore, these properties are overall more energy-efficient, require fewer repairs, and overall, less maintenance, thus saving homeowners money in the long term. 

Due to today’s materials and labor costs, the biggest downside to new construction is the cost. Owners pay a premium for their land and new fixtures, building time, and potential overruns. 

There are advantages and disadvantages to either buying an established home or purchasing land for new construction. The best option will depend on your property requirements, location, budget, and timeline. Consult with a local real estate agent who is confident in showing you both established and new construction options to decide which is best for you.