So you’ve finally decided to take the next big step in your life - get a home of your own. You’ve connected the mortgage brokers, you’ve set up a budget, and you’re ready to start the process.
You are probably well aware that things are not as they were in your parents’ day. Owning a home is by no means a given in today’s world. So if you’re bold enough to take a risk and live an independent life, there’s probably a question that’s plaguing your thoughts.
Should you buy an existing home or build a new one from scratch?
This article will list new builds vs existing homes pros and cons.

Pros of buying a new build

A new build saves money on maintenance

Buying a home is a long term investment. That means that long term costs and expenditures are also a huge part of the equation.
A newly constructed building will come with all bonuses and perks that contemporary engineering has to offer. And we’re not talking about smart appliances and intelligent jacuzzis here.
We’re talking about the bare bones basics - a new construction will have better plumbing, electrical wiring, insulation, energy efficiency, and other utilities. It will be built in accordance with the latest building codes and using contemporary technology.
More than 80% of new homes are rated A or B
And it’s exactly here where an old home can easily surprise you with some hidden out of pocket expenditures down the line. An older home’s essential infrastructure is, for one thing, worn out. The other thing is, people have just gotten better at building homes in the past decades.
Reducing maintenance costs - a major pro for buying a new home.

A new home is a blank canvas for you and your family

A new home means a fresh start. An unfurnished house is an opportunity for you to create a new life story from scratch. Your choice of tiles, your choice of kitchen accessories, your own sense of style, and choice of amenities.
Customizing your newly built house to fit your exact needs is sometimes a daunting task, seeing as how much work, effort, and money needs to be poured in. However, if you plan on spending the rest of your life in the home, there’s no better investment in your life.
Of course, overdoing certain aspects of the build to suit your tastes can lower the resale value of your property. That’s especially true of some upgrades that are hard to uninstall. The next owner will have to include redoing your work into the price, which will likely lower the cash they will be prepared to give you.

Newly built homes are usually better designed

Modern floor plans are made with modern living in mind. The floorplans are much more open, which suits the current trends in home styling.
Newly built houses are more bright and welcoming. The ceilings are taller and generally provide the sense of spaciousness that is so sought after. Old homes tend to have more tiny rooms connected by narrow hallways. These are all walls you will have to pay to be demolished if you wish to remodel the home.

Cons of a buying new build

Building a new home carries many risks

Building a new home costs more and takes more time.
It also causes many different layers of stress to the homeowner.
Dealing with contractors, broken deadlines, and unforeseen expenses, these can all add up to a tiny nervous breakdown in the first time homeowner.
Our advice is to make a ‘lump’ deal with your contractor before starting the build. This means that the build will cost a fixed price and that any overheads and expenses that come up are on the builder’s burden, not yours.
The key to a successful build is proper communication with your builder. Do a background check on your contractor, check out their previous work, establish a good rapport, and most of all - be clear about what you want.
Some things are irreversible once done, and some are way too costly to be tampered with.

The new home premium

The moment you buy a new home, it depreciates in value. It is no longer ‘brand new.’
Successfully flipping a newly built house is near impossible. That’s why if you’re looking to buy a new home, make sure it’s a property you’ll be willing to spend an extended period of time in.

Pros of buying an existing home

That old school vibe

Like a well seasoned pan, older homes are already ‘settled in’ to their surroundings. Owning an older home means owning a part of history, and some of the designs and architecture choices are simply timeless.

The neighborhood

Existing homes are already a part of a community. While a new home is probably built in a newly developed area, buying an existing home means you’re not starting a whole new world.
If you’re a communal and neighborly person, you’re much more likely to find new friends next door when buying a prebuilt house rather than starting a new build.

What you see is what you get

When buying a pre-existing house, you already have the finished product in front of you.
A new build can go one way or the other, but a house that’s already there shows all of its flaws and advantages right there.
Of course, it sometimes takes a trained eye to spot the potential problems. Make sure you bring an expert who can see hidden flaws.

Latent potential

Sometimes, fixing just a few details on an existing property will create the perfect home for your family.
That means a small investment and some elbow grease could be the only thing between you and your dream house while still paying the lower price tag that’s usually attached to a pre-existing home.

Cons of buying a pre-existing home

Becoming a link in the chain

Previous owners come bundled with an existing home. You become the last link in the chain of owners.
This can bring stress into the buying process.

Maintenance and energy efficiency

Older houses usually require more maintenance. While they are cheaper to buy at the outset, you can set yourself up for paying dividends in the future.
For example, older houses are usually much less energy efficient than new builds. That means that your energy and heating bills will be higher on average.
If you’re not careful when buying a new home, you can set yourself up for some nasty surprises down the road.

Renovations can be a rabbit hole of expense

You may think the house just needs a kitchen redo and some new carpets. However, these expenses can quickly add up and create headaches.
Make sure you know what you're doing when buying a pre-built home - take a professional with you before signing the papers. They will know exactly what to look for in an old house in order to avoid unforeseen expenses.

Conclusion

There’s no right or wrong when deciding whether to buy an existing home or choose to go for an entirely new build.
What’s most important is to know your budget, your desires and to hire a professional broker or consultant who is privy to the pitfalls of each approach to buying your very first home.