Choosing to build a new home for yourself and your family is a major decision. While the end results can be spectacular, it’s important to carefully consider all the pros and cons before deciding to build a new home, rather than purchase an existing one.

Building a house takes time, patience and money. Before leaping into a home-building project, you should ask yourself some important questions.

Key Questions to Ask

“Should I build a house?” Many people have asked themselves that question. While new home building has numerous rewards, it’s not easy. Long before breaking ground on a new home, you should carefully consider whether you are prepared for a long, potentially frustrating and expensive process.

To help decide if you’re ready to build a house, ask yourself these questions:

• Can I obtain financing? Getting financing to build a new home can be more complicated than just getting a mortgage.
• How much do I know about home construction? While it’s not necessary to be a construction pro, some basic knowledge will make it easier for you to communicate with contractors and spot potential problems.
• What is my budget? It’s often cheaper to buy an existing house than to build a new home.
• What is my ideal location? It’s often easier (and cheaper) to build a new home in an outlying area. If you prefer to be closer to a city center and existing amenities, building a new home may not be for you.
• What is my timeframe? If you need a move-in ready house soon, building a house may not be the best option, as construction delays are common.

Weighing the Pros and Cons

It’s important to consider the advantages and disadvantages of building a new home. Some advantages include:

• Customization: Building your own home means you can choose everything from countertops and flooring materials to room size and lot location.
• Fewer compromises: If you want your new home to have a ground-floor master suite, center kitchen island and home theater, you can build it that way. When building your own home, there’s less need to compromise by, say, choosing a home with a three-car garage over one with an in-ground pool.
• Reduced repair and maintenance costs: Because everything in your home will be new, you should have fewer costs related to fixing broken appliances, repairing a roof or replacing siding.

Some disadvantages include:

• Cost: Building a new home is often more expensive than buying an existing house.
• Delays: Many things can delay the construction of a new home. If you need a new place to live soon, building a new house may not be the best option.
• Hidden Expenses: It’s not unusual for unexpected expenses to pop up when building a new home, or for construction costs to exceed your planned budget.