Are you thinking of building a home instead of buying one? If you are thinking of taking that route, think twice because it may expose you to the following risks:
You Will Have To Wait A Long Time
For most people, this is the premier disadvantage of going the construction route instead of buying a house whose construction is complete. According to statistics, it takes about four to twelve months to construct a house; the exact duration depends on issues such as the material of construction, size of the house, and the finish required, among other things. Compare this with the 35 to 45 days it takes to close the purchase of a house once you have agreed on the price. Both of these time estimates don't include the time taken to hunt for the empty lot (on which to build a house) and the house to purchase.
Finding an Empty Lot in a Good Neighborhood May Be Difficult
Another problem with opting to construct a house is that most of the best neighborhoods are already built up. If you want a safe neighborhood with good socioeconomic infrastructures such as good roads and schools, chances are high that developers have already constructed properties in the area. It is difficult, but not impossible, to find an empty lot in a good neighborhood; in some cases, you may be forced to get out of the beaten path to find an empty lot.
You Are Likely To Spend More Money
On the surface, it may seem like building a house is cheaper than buying one because you don't have to include the developer's profit margin. Unfortunately, the reality is different and building a home is typically more expensive than buying one. This is mainly because property developers get huge discounts on building materials and construction costs because they buy such things in bulk. You have to buy everything at its regular price if you are building a single home, and this makes it more expensive.
There Is a Risk of Dealing with a Difficult Contractor
Lastly, there is a risk that you may end up with a difficult contractor who may not keep their part of the bargain once you sign the contract. Sure, a legally binding-contract may help you to get the government to enforce the contract, but this will take more time and money, for example, if you have to sue the contractor. You don't face such risks while buying a home.
Contact your local real estate services for more information and assistance.