Should You Buy an Existing Home or a New Build with Your MO Vet Home Loan?
When it comes to buying a house, you have several options available to you. You could buy an existing home, you could buy a newly-built home, or you could even build a home yourself. The options can be confusing, but they don’t have to be. Here, you can learn more about buying an existing older home versus buying a brand new build as well as the benefits of each.
Reasons to Buy an Existing Home
Many of the homes you’ll come across in Missouri were built anywhere from 1920 to current, and they offer you more flexibility than a brand-new build in a few different ways.
- Cost – Resale properties are almost always more affordable because they’ve been lived in and may not be as high-tech or as efficient as their brand-new counterparts.
- Flexibility – Because resale homes have existed for years, you can’t really customize much outside of post-sale renovations, so be sure to keep this in mind.
- Repairs & Renovations – Older homes often require repairs or renovations to make or keep them energy efficient. After all, saving money on a monthly mortgage payment won’t make much difference if your utility bills are sky-high.
- Costs of Ownership – This is yet another important consideration, and utility bills are only part of it. You also have to think about things like property taxes and, in some cases, even HOA fees. Don’t forget about frequent repairs and maintenance based on the home’s features and be sure to consider the age of everything from the wiring to the HVAC system.
Reasons to Buy a New Home
On the other hand, you may prefer to look for a brand new, never-before-lived-in home. Some of the things that you might want to think about include:
- Cost – The purchase price associated with a brand-new home will almost always be higher than that associated with a resale home. They’re newer, and they typically utilize newer (and more expensive) building materials.
- Flexibility – In some situations, if you buy a not-yet-built property in a new development, you get a little say-so in the design of your house. For example, you may get to choose between three bedrooms or four, a finished basement or unfinished, or even an eat-in kitchen or a standalone dining room. This is not always the case, though.
- Repairs & Renovations – Unless you plan to finish an unfinished basement or create an addition, you won’t have much to worry about in terms of repairs and renovations for quite some time, and that can be incredibly relieving.
- Costs of Ownership – Again, you’ll need to consider things like HOA fees and property taxes, which can be more expensive for new builds because they tend to have a higher overall value. This may be offset, though, by reduced utility bills thanks to good insulation, better wiring, efficient heat, and newest-generation windows.
As you can see, there are plenty of benefits associated with both existing and new build homes. It’s up to you to balance value, preference, need, and cost to come up with the best possible solution for you and your family, but don’t be afraid to ask your lender and your real estate agent for help.