Is It Better to Buy a New Home, Build a New Home, or Renovate?

Homeowners looking to upgrade their homes have a few options. They could sell their home and buy a new one, have a contractor build one, or renovate their current dwelling. This article will discuss the pros and cons of each option.In this unstable economy, selling a home could take months or years. If a homeowner is choosing the option of selling their current home and buying a new home already built, they would need to include a contingency of selling their home before they could proceed with the purchase of the new home.Many builders won’t or just can’t wait for a contingency that could drag on for months or a year. As they’re waiting, their bank is charging them interest on the construction loan to the tune of $2,000 or more per month. They need to sell quickly!A homeowner could list their current home and sell it before they start looking, but they may not find the domicile they want after waiting for many months.The second option, having a custom home built, has many advantages over the first. The homeowner sells their home and moves into a rented condo while their builder constructs their new home. They are paying interest during the construction period, but they’d be paying for that anyway when buying a new home. The interest paid by the builder is included in the sale price.The time needed to build a custom home would be about 6-8 months, which is one disadvantage, but the homeowners would have a home exactly the way they wanted it.The third option, renovating the current home has advantages and disadvantages. On the plus side, you wouldn’t need to go through the headache of listing and selling your home. And you would avoid the time and stress of finding a perfect fit in a new home. The new home inventory is still quite low.Another advantage of renovating your current home is you remain in your neighborhood. This is a plus assuming you like your current neighborhood. Maybe your kids have established friendships and adapted to their local schools in your current location. Renovating your home would keep you in that favored neighborhood.On the negative side, renovating a home can be a stressful experience. Depending on the extent of the remodel, your entire home could be ransacked and a mess for several months. Subcontractors and workers would be coming and going from 8 to 5 every week day.If the remodel is large, some homeowners opt to move out for the few months of construction. This does add to the cost, but sometimes it’s money well spent and can save your sanity and your marriage!To summarize, I believe having a custom home built is the best option for these reasons:
It’s the least stressful.
It costs about the same as buying a pre-built home but you get exactly what you want in a home.
You don’t have to deal with the mess and inconvenience of a renovation.