Finding your dream home can be an exciting but difficult adventure. You could buy a previously owned home, build a custom new home from the ground up, or buy a new production home from a builder. All three options come with many benefits, but also some disadvantages.
Custom New Home
Building a totally custom home from the ground up sounds like a dream! And this is the option about 25% of Gen X, Baby Boomers and Seniors choose. These new homes can be built to your liking and preferences. You can get the style of your dreams, bigger closets, more bathrooms, open or closed concept, choose each of your finishings – whatever you prefer. These upfront customizations will reduce the need for remodeling or updating. These homes will be built with new materials and appliances that are typically under manufacturer’s warranty, which means less future maintenance costs. A custom home can be built on any plot of land that you own or purchase, but this will need to be done before construction can begin.
The biggest downside of a custom home is that all of these customizations will come at a higher cost than either production or previously owned homes. These homes also tend to take the longest to build as they need to be designed and all materials need to be specially purchased before the building process can even begin.
Over the past 10 years, this new home option has become more and more popular, especially among millennials, increasing in preference from 28% to 41%. Production homes are built on the plot owned by the builder within a new community that they are creating. This eliminates the need for buyers to purchase land before construction, reducing costs. These homes will offer a limited library of floor plan and personalization options, but buyers will have some potential for upfront customization.
Within the builder’s new community, multiple of these homes will be manufactured at once, so materials will be bought at a higher volume. This creates a lower overall cost for the home. These homes are typically built fairly quickly, allowing the buyer to move in faster than with a custom home. Much like with a custom home, these homes will be built with new materials and appliances that are typically under the manufacturer’s warranty, which means less future maintenance costs.
Previously Owned Home
Buying a previously owned home is still the preference of 40-50% of home buyers across all generations. Previously owned homes tend to have a little extra charm and character than brand new homes, which adds to their appeal. There’s also a lot of opportunity to remodel and customize an existing layout, and typically just a few updates can completely change the space. These existing homes tend to be in more convenient, established metro areas instead of new outlying suburbs. These homes may actually have lower property tax rates, and when buying, there’s more room for price negotiations, and typically will be less expensive than new homes.
Older homes typically won’t come with manufacturers warranties, so if something were to break, you as the owner will be responsible for the cost of repair or replacement. These homes may also need different levels of TLC and upgrades right away.
Whether you’re considering a new home or putting personal touches on a previously owned home, consider FloorQuest. We’re the builder’s choice for flooring, countertops, and cabinetry - make us your choice as well.