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PEI Real Estate Report - To Buy or Build?

You know you want to buy a home in the near future but you may be in a quandry over whether to buy an existing home or to build. This is a question many people mull over and find it difficult to come to a clear decision on since both options provide their own advantages and disadvantages. A good first step is to make a list of the advantages and disadvantages for each option. For example:

BUILD:

Advantages

You can customize your home to your liking.

You control (to some degree) when you take ownership of your home.

The home will be warranteed and should not be in need of immediate repairs.

You may pay less having your home built vs. buying the same home as a resale.

And the obvious one...it's a NEW home.

Disadvantages

In most cases, people go over their budget by AT LEAST 15%.

You are limited to where you can build based on land availability and price.

There are MANY decisions to make and it can be a stressful process.

 

BUY EXISTING:

Advantages

You can see what you are buying vs. trying to visualize a home based on a plan.

If buying a home in an established neighborhood, you know that your sightlines, surrounding homes, etc. will not change. (Albeit this is still the case if you bought a lot in an established neighborhood).

You know fully what your costs to purchase will be.

Disadvantages

You may pay a higher price for the home vs. if you were to build the same home as you will be paying realtor fees and for the appreciation of the home and neighborhood.

You may have to give up some of the things you want in the home because exactly what you want may not be available.

The decision making process to build or buy existing can be confusing. Enlist the help of your Realtor. He or she can provide insight into the process that can make your choice easier to make.

 

Do you have more questions about this topic? Our REALTORS are here to help you. If you would like more info on this or other real estate topics go to www.5662121.com and join us on facebook where we discuss in more detail.

 

 

Posted by Joel MacDonald on October 6, 2011
Tags: Real Estate Report Market Reports and Conditions
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