Building a New Home Vs. Adding On
Are you in desperate need of another bedroom due to an impending arrival? Maybe you can no longer make do with an apartment-sized kitchen. Regardless of the specifics, if your current home is no longer meeting your needs, it’s time to make a change. But is the solution to build an addition to your home? Or is it better to just move to a different home altogether? The build an addition or move question has troubled many a homeowner. Below, we’ll help you evaluate the pros and cons of adding-on to a house vs. building a new construction home.
Remodel Vs. New Construction– 5 Key Questions to Ask
Moving can be difficult, so many people ask themselves “Should I add on to my house?” if they think it will allow them to avoid a move. But adding-on to a house isn’t easy either. When deciding whether to build an addition or move, there are several factors to consider. Here are five questions to help you decide whether to build or remodel:
1. What Do You Need?
Make a list of essential features you must gain from build or remodel. What’s working for you at your current house? What’s not working? Answering these questions may help you determine if adding on is actually the best way to move forward.
2. What Is Possible/Allowed?
Once you know what you need, you’ll want to figure out what you can actually do. There are a number of possible limiting factors here, such as:
- Local zoning laws
- HOA and historic building restrictions
- Space limitations – you only do so much with your existing lot
- Structural issues, especially with older buildings
Determining what’s physically possible and legally permitted can help you determine whether you should build an addition or move.
3. What Can You Afford?
Aside from the physical and regulatory limitations, there’s the matter of money. In general, additions and renovations cost less than building new, but costs can escalate quickly, especially when you run into unforeseen complications. This is especially true in older homes, in which a relatively simple addition could wind up turning into a major construction project in order to bring existing systems and structures up to code.
4. Could You Get a Return on Your Investment?
Even if you can afford it, is it worth adding on to your home? As a general rule of thumb, you don’t want yours to be the most expensive house on the block. Put another way, you don’t want to pour money into a home that you will not be able to get back when you sell. Certain improvements, like adding a second bathroom or upgrading the closet in the primary bedroom tend to have a better ROI than adding a sunroom or a garage.
Building a new construction home is often a better investment, especially if you build in the right neighborhood. According to RCLCO, location is one area where buyers are least likely to skimp on, so relocating is often the better choice.
5. Can You Handle the Time and Stress Involved?
Finally, there’s the matter of how adding on or building a new home will affect your lifestyle. If you choose to build an addition on the house, you’ll need to either put up with the noise and dust of your construction crew or find another place to stay. This requires the added expense of paying rent on top of your mortgage payments. On the other hand, building a new home may take longer than renovating, but it’s much less disruptive.
Reasons to Build a New Home vs. Adding On
As you consider the above questions, it’s important to take into account the potential advantages of each option.
Reasons to Add-On or Renovate
Some homeowners choose to renovate for these reasons:
- Potential ROI – A two-story add-on could get you a 65% return on your investment.
- Lower upfront cost – Add-ons and renovations usually cost less upfront than whole new constructions—as long as nothing goes wrong, of course.
- Less time – Renovations usually take less time than new home builds, so you could save some time, if that’s important to you.
It’s worth noting that while renovating can be a good idea in the right circumstances, you need to go about it carefully. Some additions could make a home harder to sell (depending on your neighborhood), and you might have local limitations, so do your due diligence.
Reasons to Build New
Some of the reasons you might want to build a new home include:
- More control – You can choose your exterior design, floorplan, number of bedrooms and bathrooms, finishes, and more, right from the start.
- Fewer surprises – When you work with an experienced builder, like the ones that build the new homes at Lilyana by Hillwood, you know the cost of your home up front. Once you choose your design and floorplan, and make your selections on optional features and upgrades, your costs are set. You can even use Lilyana’s mortgage calculator to find out how much new home you can afford!
- Greater efficiency– New homes are designed to be more energy efficient than older homes and some are built with sustainably sourced and recyclable materials.
- Less stress – No need to live in a major construction zone or endure the financial stress of paying rent on top of your mortgage payment.
- It’s all new – New homes are still under warranty, and there’s less chance that something will break. And come on, who doesn’t love that new-home smell?
When you build new, you can get the home you want from the very beginning rather than trying to fix up something that may have more issues than you initially anticipated.
Build a New Home at Lilyana by Hillwood
Another advantage to building new is the chance to live in a master-planned community like Lilyana by Hillwood in Celina, TX! Located within the acclaimed Prosper ISD, Lilyana offers the advantages of small-town living just minutes away from the $5 Billion Mile in Frisco, TX. Come visit our community that has over 50-acres of green space and an array of amazing amenities or take a virtual tour instead. Contact us to learn more about Lilyana today.
Is It Better To Build Or Buy A House?
Have you ever thought about having a house built? It’s not uncommon for people to dream about designing their ideal home, from the floor plan to the fine details. However, building a new house vs buying an existing one can be complicated, depending on the circumstances. If you’re uncertain about building vs buying a home, we will take you through some important points to consider before you decide.
Building A New Home
Having a house built within a master-planned community offers a more structured process than you would have if you buy a vacant lot in a subdivision. The infrastructure of a master-planned community will be established and there will be amenities like fitness centers, event pavilions, pools, parks, and playgrounds that are either available to residents now or planned for the future.
Additionally, the building process in a planned community is simplified as well. You can start by choosing your lot or the home design you want from an array of available options. Then, construction begins. The home builders at Lilyana by Hillwood offer homebuilding sites in our master-planned community in Celina, Texas and work with you to help you create your ideal new home.
Benefits of Building
There are several benefits of building a house including greater control and options for customization, among others.
- Customization. You can select the design, features and finishes from the start rather than remodeling an existing house.
- Control. When you choose to build, you will have much more control over the final product. An existing home may have features you do not like that you accept because you like other elements of the house.
- Competition. Some cities have very few existing homes for sale. This means homeowners receive multiple full price offers before their home is even officially on the market. When you build a house vs buy a house, you don’t have to worry about competition from other buyers.
- Newness. A home you have built will be brand new! It will have sparkling new appliances, updated finishes and likely be more energy efficient and tech savvy than an existing home. So, while the cost of building a home vs buying is likely more per square foot, you ultimately will get what you want (or very close to it) and great value for your money.
If you’re concerned about affording the cost of building new vs. buying existing, it may be possible to qualify for a Federal Housing Association (FHA) One-Time Close Construction loan that will significantly offset the construction costs of your new home. These are just a few of the reasons why many people opt for building versus buying their homes.
Buying an Existing Home
Buying a home can be a more straightforward process than building one, but you will face certain limitations. You may not face construction costs, but you must still account for certain expenses beyond just the market price of the house. You’ll need to prepare for your closing costs, the cost of an appraisal and home inspection, and any remodeling you require before you move.
There are many different loan programs available that can make buying a home easier and more affordable. The FHA, USDA, and VA all offer loan programs for first-time homebuyers, some of which may include zero down payment and lower interest rates. It’s worth taking time to investigate all of your options for financing to get maximum value from your home purchase.
When considering buying vs building a house, these factors may make buying more attractive:
- Timing. Provided you don’t do an extensive remodel, there is no need to wait for construction when you choose a move-in ready existing home. If your moving timeline is urgent, then it may be in your best interests to choose an existing home to buy instead of having a house built
- Price. Depending on the neighborhood, you may pay less for an existing home than you would for a newly built home. But then again, you may not. An existing home in a sought-after neighborhood can cost more than a newly built home in a brand-new development.
- Decision Making. If you find it difficult to make decisions, building a house may not be for you. You will have a lot of choices to make from the lot to the home design, countertops, paint colors, flooring, etc. Buying an existing home will not require as many choices.
These are just a few of the benefits of buying vs building a house. Of course, if you decide to buy instead of build, you’ll need to decide what type of home you want to buy. The age of the home is one of the most important factors to consider.
Buying an Old Home vs. a New Home
There are some key considerations to evaluate with a new home vs old home. An established older home has a certain charm that many homebuyers will find attractive. New homes may have modern features and amenities, but some homebuyers find them less personal and attractive than older homes. Ultimately, buying a new home vs an old home comes down to personal preference.
Is It Better to Buy or Build a House for You?
If you are torn between the decision to build a house vs buy a house, it is vital to consider your family’s needs. If you are still unsure about building vs buying a home, Lilyana by Hillwood can help. You can take a virtual tour of our model homes or schedule an appointment with a builder to visit our community. If you are leaning toward building vs buying a home, Lilyana offers a wide range of amenities and community-driven features that will help you make your homesite selection with confidence. Contact us today for more information about building and buying options in Lilyana.