Seven years ago, my husband and I built our own house. We had thrown around the idea of buying as well, but we always came back to building. Luckily our builder made the process fairly painless. Our stress came in the form of financing.
We were both making a decent salary, had very little debt and quite a bit in savings. We could make a 25% down payment. There was no reason that for us not to be approved for the loan that we needed to build our dream log home. And yet we had to go to four different banks before we found a lender that was willing to give us the loan.
It seemed like the banks in the rural area where we live had no idea how to deal with a construction loan (or they were very leary of dealing with them). This doesn't seem to be the case typically, but in our experience it was.
So I suppose building your own home will inevitably come with some kind of stress.
Let's talk about the pros and cons of building vs buying.
Buying An Existing Home- Pros
- this route is typically cheaper than building a home
- move-in date will be shortly after purchase date
-opportunity to negotiate price
- house will potentially have more character
Buying An Existing Home- Cons
- added cost of additions and renovations
- may require a lot of research
- you may find a home that you love and lose it to a competing buyer
- financing might be more difficult
Home Construction Pros
- you can completely customize your home for your needs and wants
- potential lower energy costs
- may be easier to get approved financing through your builder
- fewer maintenance costs
Home Construction Cons
- building a home is generally more expensive
- you're starting from scratch (landscaping for example)
- there will still be things that you wish you had done differently
- you will not be able to move in as quickly
-potential higher taxes
- home might be "cookie cutter", especially in more populated areas.
Whether you decide to build to buy, make sure to weigh the pros and cons carefully. This is not a decision that should be made quickly or lightly. Get together with your partner, and write a list. What have you always dreamed of having? What are your worries? Your hopes? What is your wish list and what are the features that the home MUST have?
Once you have your must have list, ask yourself: Is it possible to get these wishes easily through home construction? Through home buying?
Whatever you decide to do, enjoy it. Even though in the moment it will seem like the home buying or home building process will drag on forever, before you know it 5 years will have passed by. Then 10. Try not to be stressed by the whole process and simply enjoy it. Good luck!
