New Construction or Existing Home?

Which is Better: New Construction or Existing Home in Myrtle Beach?

With homes sales once again on the rise and builders back in the swing of building new homes not to mention developing new neighborhoods, potential buyers are once again asking the question:

Which is better: new or existing construction?

Here are advantages and disadvantages to take into consideration when trying to make your decision on whether to build a home or buy one.

New Construction Homes

Building a home can be somewhat intimidating especially if you are entering the home buying market for the first time. With considering new construction, there are two ways to go: 1) building a new home in a new development that offers pre-determined elevations and options from which you can choose fixtures, finishes and other extras or 2) building a custom home where you work with an architect, contractors and subcontractors to design and build your dream home. Both have similar advantages and disadvantages to consider such as:

Advantages of New Construction

You Get YOUR Custom Home. When building, you get to design the home you want from the exterior to the flooring in each room to the counter tops in the kitchen. Everything is what you want and the way you want it. Building a home gives you the opportunity to have your dream home.
Quality Construction. Building a home offers quality construction especially when it comes down to the materials and codes. New homes are built with the latest standards which brings a sense of security of owning a well-built home.

Neighborhood Amenities.

When deciding to build in a newly developed neighborhood, there are often excellent neighborhood amenities that are very appealing such as community pools, club houses, playgrounds, and more.

Incentives.

Builders in new neighborhoods offer discounts, free upgrades, money towards closing and other incentives to make building a home more cost effective.

Disadvantages of New Construction over an Existing Home

More Expensive.

More so when building a custom home, building a new home is more than likely going to be more expensive. Inevitably, issues come up like things costing more, and suddenly, you realize you have spent much more than you thought. On top of that, when building in a new neighborhood, you are going to have extra expenses such as homeowner’s dues to the neighborhood association.

Takes Longer.

Building a home always takes more time than expected. There are several delays that can impede the process including bad weather, delays in getting the right materials, contractors who have too much work on their plates, delayed inspections and more.
Time Consuming. Building a home is very time consuming when you consider meetings with contractors and the time you spend picking out everything for your home from paint colors to every fixture to even outlet covers.

Restrictions.

Restrictions and limitations come within new neighborhoods under development. You may find a great neighborhood then dislike the choices in elevations and floor plan combinations.

Timing.

Timing becomes a big disadvantage if the construction is delayed and your current home has been sold. If it is not timed correctly, then you are under the gun to find a short term rental in which to live until the construction is completed.

Buying an Existing Home

Buying an existing home is a much less all-consuming process. Yes, it can be stressful and engulf your every thought for several months, but if you do not have the resolve to endure the process of building, this is the way to go. Many home buyers find their dream homes without having to design and build it. Here are some points to consider with buying an existing home:

Advantages of Buying an Existing Home over New Construction

Ease. There is an ease that comes with buying an existing home. Once an offer is accepted, the rest comes down to getting loan approval (which you can do before hand) and fixing any issues found during an inspection. If you do as much as possible ahead of time, you can sometimes close within 30-45 days.

Location.

Existing homes are often located in older neighborhoods where there is no community or home owner association and the dues that come along with them. Additionally, older neighborhoods already have mature landscaping, large trees and lots of character.

Value.

There is more value to buying an existing home as it has already experienced an increase in home value. Plus, you have the opportunity to buy a “fixer-upper” at a good deal where you can renovate and remodel to be what you want.

Disadvantages of buying an Existing Home over New Construction

Renovations.

Many existing homes are in need of renovations and upgrades to plumbing, flooring, etc. This can involve extra expenses unless you are planning on them ahead of time.

Compromise.

Buying an existing home involves compromise. If you love a neighborhood because of its location and feel, you might have to compromise on what you want in order to live in the neighborhood.

Maintenance.

If the home is on the older side, there is more maintenance involved in terms of the appliances, wiring, heating and cooling and other issues.

Buy or Build?

The decision to buy or build is a big one. Each one has its own pros and cons which need to be thoroughly considered before making a decision. Once you have weighed everything and make your decision, you can be confident in knowing your decision is the right one.  It would be advantageous to have a buyers agent help you to weigh out the decision and to help represent your interests so you are getting the best value for you.  And the good news is that there is no cost to using a real estate acting as your buyer’s agent.  Check out this article to learn more here about Buyer’s representation when purchasing new construction in Myrtle Beach.