Once the decision has been made to buy a home, buyers have two options. Either purchase an

Once the decision has been made to buy a home, buyers have two options. Either purchase an existing home, or build a new home. New construction homes are appealing for many reasons. On the other hand, the process of building a home can be frustrating and a bit overwhelming. But, the building process can be very rewarding. Before contacting a builder and discussing home plans, consider the advantages and pitfalls of new construction homes.

Advantages of Building a New Home

- Customizable and Modern Features - After purchasing an existing home, many buyers spend thousands of dollars upgrading and making improvements to the property. On the other hand, if constructing a home from the ground, the buyer can choose wall color, wallpaper, flooring, cabinetry, and so forth. Homes in perfect move-in condition are typically more desirable than those needing a makeover.

- Less Problems - A new home is likely to experience fewer problems than an older home, especially with respect to items such as electrical, plumbing and roof.

- Rising Property Values - Because newer homes are usually built in areas experiencing growth, the home's value often appreciates. The equity built up can be used to finance other projects. Moreover, the buyer may choose to sell the property and use the equity to purchase a more expensive home down the road.

Disadvantages of Building Home

- Longer Process - If eager to buy a home and move into the property, constructing a new home may not be appropriate. On average, construction on a new home is six months. Any problems arising may delay construction (inclement weather, financing troubles, etc.).

- Higher Asking Price - Newer homes often have higher price tags than existing homes, especially if purchased in areas of growth or expansion. Higher prices for the home mean that buyers will need a larger down payment and pay more closing costs. If unable to meet these expenses, an existing home may be preferable.

- More Complex Process - If contemplating building a home, be prepared for a more complicated process. A new construction home involves finding an affordable lot, choosing a floor plan, selecting a builder, acquiring a construction loan, and making myriad decisions on the improvements in the home.