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Buying vs. Building

Purchasing an existing home. By far the most common purchase is that
of an existing home purchased from a previous owner. One attraction of an
existing home is its immediacy; these offers abound, and once you find the
home you want, you simply need to sign a contract and arrange financing.
You may be able to move in within a month or two of first seeing the home.
Purchasing a new home from a builder or developer is another option.
Rather than choosing every tile, cabinet, and finish, a basic package has been
determined for you, although you can often upgrade specific components
and the framework allows for expansion down the line. This keeps costs and
delays down, while allowing you some control over the finished product.
Purchasing a lot and hiring a builder to build a custom home. The sky’s the
limit in terms of customization and flexibility, but all that uniqueness will have
to be paid for, making this the most expensive option for most people. While
an existing home may require some renovations or upgrades, when building,
there is always the temptation to add in numerous upgrades and personal
customizations, all of which quickly add up.

Also, because you have complete control over every element of the
construction, you will be involved in choosing everything from cabinet
hardware to appliances to paint colors. Some people love these decisions,
while others find them overwhelming.
Be prepared for a wait before you move in; construction takes time, and
anything from inclement weather to labor shortages can slow it down.

To build your dream home, you will need to finance two steps: the purchase
of a lot, and the construction of the house. This will require either large cash
reserves, to buy your lot free and clear, or impeccable credit and income
to qualify for loans to cover both of these investments. Overall, building a
custom home will usually be your most expensive option, but may be worth it
to you in terms of the flexibility and customization it will afford you.

New homes go up almost daily in Lakewood, but there are also many buyers
who opt to purchase a resale house. Here are some considerations to factor
into that choice:
‹ Is somebody in your family handy? Newer homes are likely to need less
maintenance and repairs than older ones.
‹ Who are the developer and builder of the new construction? The
developer, who is backing the project, needs to be someone that you
trust will not cut corners. The builder who is actually executing the project

58 | 2020 Lakewood Home Buyer’s Guide