The process of deciding whether it’s a better idea to move forward with a custom built home or home renovation can be one of the most difficult you face. Each choice has its own advantages, which may weigh heavily in your decision-making. Besides the issues you perceive as critical, there may be outside factors that force the decision one way or the other.
Factors Outside of Your Control
There are several ways you can build a new custom built home. One includes tearing your existing home down and building new. The other way is to sell your home and find another lot to construct the new home.
Before you decide to tear down and build new, make sure it’s possible by:
- Checking with your local government agency to see if they allow it. They may not permit the demolition or the new build.
- Asking your lender if you can tear the house down. They may not allow it because it destroys much of the collateral they have that secures your loan.
- Contacting you homeowner’s association (HOA). You may not be able to tear it down. Communities with HOA have strict rules regarding what you can do to your home and lot.
The Case for Renovating
Even with a home addition, renovating costs less than building an entirely new home, and it is faster. You will need approved construction drawings to submit to the local jurisdiction, who will issue a building permit upon approval. A new custom built home requires many sets of plans and takes much longer for approval. You won’t have to move during the renovation or sell your home.
The Case for Building New
Everything inside your home will be new and under warranty. You can build it to your exact specifications, and you won’t have to compromise nearly as often as you would for a home renovation or remodel. The home can incorporate the latest design features and conveniences. Its infrastructure including the wiring and plumbing, will be up to the latest building codes and should be trouble-free for years.
Financing Options
Sometimes the availability of advantageous financing makes a difference. When interest rates are low, it’s easier to sell a home and buy a new one. Mortgage rates are lower and qualifying criteria will be more relaxed. When interest rates are rising or higher, the reverse is true. It’s harder to sell existing homes and loans are more difficult to get. Financing a remodel may be as easy as a home equity line of credit regardless of interest rates.
Bottom Line
When you’re deciding between a custom built home or a home renovation, check with your HOA, lender and the city before making your final decision. When you’ve learned what’s permissible, you can then move forward with whichever project will best meet your housing needs and preferences. Alair Homes Belleville is here to help. Contact us with questions and to get started on building or renovating the home of your dreams.