Buy or build?

One of the first decisions you will have to make in your home search is whether to purchase an existing home or build a new one. Each approach offers unique advantages, and your individual lifestyle, financial goals, and schedule will determine which is best for you. Common reasons for moving up to a newly built home include:

• New homes are built with new materials and appliances, so they typically require less maintenance than resale homes.
• They often must offer more safety features and fewer health hazards in order to conform to current building codes.
• New homes are usually well-insulated due to better and newer windows, more efficient heating and cooling equipment, and greater use of insulation.
• They can be easier to customize than resale homes because you choose many details ranging from floor plans and paint colors to faucets and light fixtures.
• New homes are more likely to be wired with new technologies in mind, such as multiple phone lines, high-speed Internet connections and extra cable outlets.

Existing homes, on the other hand, are attractive to many buyers for the following reasons:

• Older houses and neighborhoods may have more character and charm.
• They typically have more land than newer properties due to changes in land-use patterns.
• The homes are often in older, more convenient metro areas rather than in outlying suburbs or surrounding communities.
• They tend to be less expensive than new properties and more likely to include items that may cost extra with a new home, such as blinds, landscaping, built-ins, etc.

If you do decide that a newly built home is best for you, remember that a construction project requires careful planning. To make sure yours goes smoothly, keep a few basic tips in mind:

• Decide the features you want your new home to have in advance. Consider whether you want to customize the floor plan or even order appliances through the builder.
• Check the builder's reputation. Your local Better Business Bureau, builders association, and newspaper all provide listings for builders. You can check out prospective builders by visiting their construction sites, getting references from previous clients, talking to real estate agents, or even hiring a general contractor for an assessment.
• Consider signing a written contract. Many homebuyers sign contracts with builders that detail the house model, building options, materials, payment schedules, timing for completion of construction and how to resolve disputes. Consult with your real estate professional and lawyer to help you through the contract and negotiation process.