If you are nearing retirement age or have recently retired, you may be thinking about moving or downsizing. In retrospect, deciding to move can be the easy part. Once you decide to do so, you face many other decisions such as where to live, your housing budget, homeowner association fees or property taxes, and the overall desirability of each neighborhood. You also need to consider the pros and cons of buying vs. building your next home. Each has its advantages and disadvantages:
Moving Into An Existing House
According to Investopedia.com, the two main advantages of purchasing a home someone else has already lived in are cost and convenience. You can start shopping for your next home as soon as you receive pre-approval from your lender. You also have the convenience of working with a real estate agent to help you schedule showings, negotiate your offer, and walk you through the paperwork. After negotiating the final sales price with the seller, you can usually take ownership of the home within 60 days.
If you need to plan your move on a tight schedule, moving into an existing home is convenient. As far as cost is concerned, the National Association of Homebuilders states that buying vs. building your next home is usually cheaper. The money guru Dave Ramsey backs up this claim when he states that the typical cost of buying a house is $309,000 while building a new house costs an average of $485,000.
Building Your Own Home
When you have your home built, you are in charge of all the details. You can personalize everything from the cabinet design to paint colors to match your tastes and lifestyle. You also do not need to worry about dealing with someone else’s mess or maintenance problems since you will be the first person to live in the home.
Another benefit of building a new home is that you will not have to compete with other buyers for the property. The housing market is especially hot right now with the average home being available just 20 days before someone purchases it. Going through the experience of being outbid by another buyer several times in a row can be frustrating and discouraging.
When it comes to energy costs, newer homes cost less to maintain than older homes. The biggest reason for this is that homebuilders use more energy-efficient materials and install newer heating and cooling systems that do not cost as much to maintain.
Some downsides to consider when building a new house include a longer wait time to move in, less flexibility with price negotiations, and the stress of having to make every decision yourself. You should expect to wait an average of seven months from hiring building contractors to when you can finally move into your new home.
Solivita Living Can Help You Find the Ideal Solution
Based in Central Florida with five locations, Solivita Living is a real estate agency that caters to the 55+ retirement community. We invite you to contact us for additional assistance and to learn more about making Central Florida your next home.