Construction Loans: What are the Benefits of Building from Scratch?

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When it comes to buying a new home, Primary Residential Mortgage realizes you have many options. Part of our responsibility is educating you regarding those options. One of the first big things you need to decide when feeling that new home itch, is whether you want to buy an already existing home, or build one. Building a home takes much longer, but there are some real benefits to building versus buying. So, what are the benefits of building from scratch?

Build it How You Want it

By far, the most significant benefit to building from scratch is to get a home exactly how you want it. Do you have a large family and need a huge formal dining room? No problem. Maybe you want a three car garage but only two bedrooms. No problem. You can design it and build it exactly the way you want. Sometimes, when you add up the costs of remodeling an existing home to get it the way you want it, you might as well start from scratch.

It’s important though, that when designing a home from scratch that you try to stay logical. If you over customize it, you might end up spending way more on building than you would on buying an existing home, so you have to be able to exercise a certain level of self-control. Also, you might want to consider resale value. That giant jacuzzi tub in the middle of your master bedroom might not appeal to some more conservative buyers, and someday you might need to sell the home you’re building.

Time it Right and it Might be Cheaper

It might be cheaper to build from scratch, but it depends a lot on when you buy, where you buy, and your level of self-control. Can you stick to your budget, or are you the type of person that when picking out carpet, you always want the newest and greatest trends?

Large developers often have a quota of properties they need to sell to meet their financial obligations. That means you may be able to find more favorable prices if you get in early in the first stage of development, but be careful about all their upselling techniques.

New Homes are More Energy-Efficient and Environmentally-Friendly

Newly constructed homes are made from brand new materials and utilize the latest technologies. Plus, they generally come with state-of-the-art new appliances that are and more energy-efficient, which costs less and helps protect the environment.

If you are still weighing the pros and cons of building from scratch, give Primary Residential a call. Our helpful loan professionals will patiently answer all of your questions and help you make a sound decision. We’ll explain all of your options and help you choose a unique loan for your current situation. Contact us today.

 

Note: Opinions expressed are solely my own and do not express the views of my employer