Working with a new home builder may seem like a privilege reserved only for the very wealthy, but having a home custom built may be more affordable than you think, and it may actually be the more cost-effective and better financial choice, all things considered. If you're in the market for a new home and aren't sure if you should work with a homebuilder or shop for a home already built, note why the new home may actually be preferable.
1. Size of the home
When you work with a custom home builder, you can create a home that is the right size for you, and this means not just the number of bedrooms but the actual size of every room as well. This will keep you from having to purchase a home that has more square footage than you really need; in turn, you won't spend as much money on heating and cooling the space. A smaller home also means a smaller roof, less insulation, fewer floor tiles, and all other materials that eventually need replacing and which then add to the cost of long-term home ownership. Even if you trim the size of a home by just a few hundred square feet or meters, this can add up to tremendous cost savings over time.
When you buy a home already on the market, it will probably need some updates when you move in so that it fits your own particular taste. This might mean installing wood floors where there is carpet, putting in new kitchen cabinets, or replacing the lighting throughout the home. While these changes may seem small and just cosmetic, they can add up to thousands of dollars when you consider the cost of materials and labour. In turn, you may spend more money to make a home suit your taste than if you had a builder add in the fixtures, flooring, cabinetry, and other items you prefer when the home is built.
3. Equity and resale value
Your home's equity may be used for loans or as collateral for investments or a new business. The newer the home, more likely it is that it will have equity the minute you buy it, as it may be easier to resell than a home already built, and for a higher price. If you think you might ever resell the home or will want to use its equity in the near future, investing in the new home may be the better financial option.