In today’s post we look at the pros and cons of buying a home that is already finished versus building your own. At first, the fact that we are architects might make you suspect that we approach this question with a certain bias towards building your own home, but don’t take that for granted. Developer-built homes have to be built too, and they are signed by architects as well, after all. Our livelihood doesn’t depend on which way you decide, and even if it did, we would try to be objective.
Advantages of buying a finished home
I think the most obvious advantage of buying a finished home is that you are spared the uncertainty and the time involved in the building process. What you see is what you get: there is nothing left to imagine. What’s more, in recent times it has been possible to find new-build and resale homes at very good prices because of the economic crisis. If the house is where you want it and the way you want it, buying a home that is already built is a very good option.
Drawbacks of buying a finished home
On the other hand, when you buy a finished home you don’t have the option of designing it exactly around your needs in terms of layout, materials or fittings. In the vast majority of cases, whoever buys something ready-made has to make compromises, and there are details that would be different had they built the house themselves. Besides, the fact that a house already exists is no guarantee that it is free from hidden defects.
Last but not least, a house that is already built, especially a new one, carries the builder’s and the developer’s profit in its final cost. It will therefore always be more expensive than the same house self-built or self-developed, because when you take on the development and construction process yourself, you also save those margins.
Advantages of building your own home
In this earlier post I already stressed the advantages I see in building your own home, so I won’t dwell on them here. I’ll simply list the ones I consider most important: getting your house exactly the way you want it, and cutting out the developer’s margin if you develop it yourself and the builder’s margin if you build it yourself.
Drawbacks of building your own home
The fundamental drawback is the uncertainty that the whole construction and administrative process generates. The self-builder has usually never built anything before, and the risk and uncertainty of the process are far from pleasant, as it is a long process and a very significant investment. On this point I am going to be less than objective and say that, with sound technical and legal advice from a good architect and, if necessary, a good lawyer, the process need not involve any great risk.
To finish, here is a summary table of the pros and cons covered in this article. The decision is of course yours, and although it should be guided by your head, it is also worth listening to your gut.
| Buying a finished home | Building your own home | |
|---|---|---|
| Advantages | No uncertainty and no waiting for a building process. What you see is what you get. New-build and resale homes at very good prices in recent times. | Your house exactly the way you want it. No developer’s margin if you develop it yourself, and no builder’s margin if you build it yourself. |
| Drawbacks | No option to design the layout, materials or fittings around your needs, so you make compromises. No guarantee against hidden defects. The price includes the builder’s and the developer’s profit. | Uncertainty throughout the construction and administrative process. Usually a first for the self-builder. A long process and a very significant investment. |
