Building a brand-new home may sound like a dream come true. You get to choose the ideal layout for your family’s needs, and have a say in each and every design element. However, the process may also be daunting if you’ve never done it before. Here are the pros and cons of building a house, including how much it costs, how long it takes, how it’s financed, and much more that will help you decide if this option is right for you.

Pro: You get what you want

Building a home is a popular option these days. And, it makes sense: When you build your own home, you get exactly what you want: an in-law suite for when the grandparents visit, a decked-out office for working from home, midcentury modern style, and more. Anything is possible.

The best way to make sure you get what you want (and that it fits within your budget): Hire a great builder from the start. This crucial step sets the best possible foundation (in every sense of the word) for your new home. Builders help you select others on your team (such as an architect, interior designer, and landscaper) and serve as your point person throughout the process.

Pro: Build where you want

Have you always dreamed of living by the water or having a mountain view? Or maybe you want no neighbors in sight? Building a home lets you set up your residence just about anywhere you want. Talk to your builder before making a land purchase. The builder will need to do a feasibility study on the land to make sure it’s a suitable place for the home you want to build. Builders help make sure the land is zoned for residential development and identify any issues with building on the site, such as connecting to utilities or developing the land before building can start.

Pro: Less maintenance

An obvious advantage of building a home is that everything is brand-new. That means maintenance and repairs will be minimal or even nonexistent for a while, saving you plenty of headaches and thousands of dollars a year. Nonetheless, a new house isn’t entirely maintenance-free. You’ll probably still need to do yardwork to keep up your newly installed landscaping. And you may want to pay for some preventive upkeep, and that could save you money in the long run.

Con: Cost

Building a house is an expensive enterprise, and typically costs more than buying a preexisting home. As such, you’ll need to have some in-depth discussions with your builder on what you want, and whether it’s affordable for you. Several factors determine how much your newly constructed home will cost: location, size, complexity, and design elements.

Con: Construction financing

To finance building a home, you’ll need a construction loan, which is a little more involved than getting a traditional mortgage to buy a preexisting house. For starters, you’ll likely need a 20% down payment since construction loans are considered higher-risk. Along with the usual financial documents needed for your loan application, you need to provide project plans, costs, and land value. You also need a signed contract or purchase contract with the project’s plans, specs, and budget details, and a timeline for the construction.

When shopping around for a mortgage for a new home build, go with a lender experienced in working with construction loans.

Con: Time

Generally, it takes a bare minimum of three months to build a simple house, and it can take much longer. Planning as much as you can will keep the project on track. Still, delays do happen. Weather is the biggest one, with temperature shifts and rain or snow postponing work. Your own choices could also be to blame. If you’re taking too long to choose your favorite flooring or windows, it could make it all take a little longer.

Are you planning to purchase an old home? Old houses tend to cost less than modern builds. Additionally, if you’re the type of person who appreciates the nostalgic appeal and charm of an older home, then this will be a gratifying choice for you. Although older houses bring undeniable historical character, there are a few things you need to be aware of before buying one. Here is a list of important things to look for when buying an old house to avoid running into trouble.

Materials

The very first thing you should check before buying or moving into an old house is the presence of harmful building materials. Generally, houses built before 1978 are known to contain lead-based paints and asbestos. These chemicals pose a danger to both children and adults. Therefore, if you find the house to have these chemicals, you need to hire a professional to remove them before you settle in.

Foundation

The foundation of a home plays an important role in its overall stability—it’s what the entire structure sits upon. Many old houses tend to have foundation issues due to tear and wear, seismic waves, wet soil or tree root activity. In order to make the house livable, you need to hire a structural engineer to inspect and repair any damages or cracks. Experts can assess the situation and ensure the foundation is properly restored.

Roof

The roof is another common problem among old houses. If a house is very old, the roof shingles likely have depreciated and become less effective. Depending on the roof type the house has, its quality and efficacy can deteriorate based on weather, maintenance and quality of installation. Consider reaching out to professionals in your area to get an estimate on repair or replacement.

Electrical

Unlike modern homes, older ones usually have old electrical connectivity, which cannot withstand modern usage and appliances such as HVAC systems, computers and televisions, to name a few. Therefore, you need to ensure that the connection is updated before you finally move in. Among the areas to pay attention to are knob and tube wiring. These kinds of wiring were common in the early 1900s and are likely to be no longer effective.

If you have always wanted to live in a bigger home, then you may be wondering when the right time is for you to move. Bigger homes are more expensive and require more maintenance. However, you may be at a point in your life financially where you’re ready for a bigger place. Here are some reasons why moving on up may be a good idea.

Larger Family

Your current home may not fit your needs if your family is growing. If you’re expecting another child, then you will need a home with extra rooms. You’ll also need a home with extra storage space and bathrooms. This can be a very common reason why people seek to upgrade their homes. By checking in your area, you can start to plan your budget even before the birth of your child and make sure that an upgrade is right for you.

Affordability

Many folks move into a smaller home because that is all that they can afford. However, if you can afford to move into a bigger space, now may be the time to do it. If you have saved up a significant amount of money, or are earning more money than you used to, you can likely handle the financial responsibility of buying a larger home. When considering this type of move, you may also want to look in a more optimal area, such as one with better schools and other community opportunities.

Working From Home

More people are working from home these days, and one of the keys to successfully working at home is to have the right space. That’s why you may need a larger home. Most small homes do not have enough room to accommodate a home office or the space for a makeshift desk. If you live in a bigger home, you can convert an unused room into an office space. This can be especially helpful if you are considering starting a business, as having a space in your home to do this can save you a lot of money on rent.

The nip of the first chill in the air. The colorful foliage. The pumpkin spice everything. Oh yeah, and the long list of home maintenance tasks awaiting you at the start of the season.

The postsummer months are a critical time for knocking out routine home maintenance to keep your household running smoothly into winter. Luckily, many of these tasks are easy DIY projects.

Check windows and doors

Lower temperatures mean higher thermostat settings, and anyone in a cold climate knows the pain of opening a gas bill in the dead of winter. To keep cold air out and utility bills in check, check all of your windows and doors for air leaks. If your issues are minor, a few low-budget options to fix leaky doors and windows include caulking around gaps, adding or updating the weatherstripping, and using foam sealant.

Clean the chimney

If you have a fireplace, fall is a great time to give it a thorough cleaning and inspection. Maintaining a clean fireplace is the simplest and best way to remove creosote, a byproduct of wood combustion that contains tar and toxins. Eliminating this from the chimney liner and the smoke box reduces the risk of a fire. If you’ve been keeping up with cleaning your chimney on a yearly basis, you can handle this task on your own, as long as you feel capable of using an extension ladder to get to the roof and scrub the chimney.

Run ceiling fans in reverse

The hot, humid days of summer are officially in the rear-view mirror (in most parts of the country, at least). That’s why now is the perfect time to start thinking about reversing the direction of fans in the home to make the space warmer. Reversing the direction of your ceiling fans helps circulate warm air near the ceiling back into your living space. All you need is a ladder or stool for this task—and make sure the fan is off. Then simply flip the switch that is commonly found on the side of the motor to change the fan’s direction.

Clean the gutters

Throughout the year, your gutters fill up with leaves, sticks, and other debris. Failing to clear this gunk from your gutters can mean rain and melting snow won’t be able to drain easily—potentially causing seepage and leaks into your home. If you’re comfortable climbing on a ladder to clean your gutters, this is a DIY-friendly task. Using a bucket, gutter scoop, and heavy-duty gloves, you can remove any debris found in your gutters. Use a hose to wash away any remaining debris and to make sure the downspouts are working properly.

Across the U.S., homeowners’ associations are on the ascent. So, what’s the draw of homeowners’ associations? By the same token, what are the drawbacks? A well-run and managed HOA can be a blessing, and a poorly managed HOA can be a curse. Here are some of the blessings, and the curses, of homeowners’ associations (HOAs).

Pros

1. Neighborhood maintenance

Generally, an HOA establishes rules to ensure the neighborhood looks sharp. These include strict guidelines about keeping lawns manicured, restrictions on parking boats and other large vehicles on the street, and limitations on exterior paint colors. This type of oversight eliminates issues with one or two properties weighing down all property values due to an unpleasant exterior.

2. Access to amenities

An HOA can offer community amenities such as a pool, a fitness center, parks or common areas, children’s play areas, and even neighborhood security gates.

3. Shared costs

HOA dues are earmarked for maintenance of shared spaces. This includes community lawn care (but not for your own yard), community snow removal (but not for your own property) and upkeep of common areas like the pool or the fitness center.

Cons

1. Dues

When buying a home in a community with an HOA, you’ve got to add HOA dues to your budget. These dues will vary depending on the shared costs required to maintain the neighborhood elements the HOA is responsible for.

2. Rules

When you live in a community governed by a HOA, you’ll have to follow its rules, even if you think they’re ridiculous. If someone buys a home in an HOA community and wants to make changes to the property, such as the addition of an enclosed patio, it normally must be approved by the HOA’s board. It’s possible that an HOA could prevent certain updates on a home. You do, however, have the option of petitioning the homeowners’ association to change any rule you don’t agree with. But if you lose, you may have to live with it.

3. Poor Management

If an HOA is facing financial problems, is being mis-managed, or is ensnared in a lawsuit, it could harm your ability to obtain a loan for a home and could hurt resale prices of homes in the community.

If you’re buying a home, you’ll definitely want to buy home insurance to protect this valuable asset in the event of unforeseen problems, from damaging hailstorms to theft and beyond. So how much does home insurance cost? Here’s a few things you should know about home insurance rates, and how to find the best plan and price.

How much does homeowners insurance cost?

The average annual homeowners insurance premium runs about $1,445. However, it can be much higher or lower based on numerous factors. Here’s a full rundown of what can affect homeowners insurance costs.

• Condition: This plays a big role in your homeowners insurance rate, and can include everything from the roof to the pipes, heating system, electrical wiring, and age. Your insurer may ask you to provide detailed information about your home; it may also gather information from public records and documents filed with your city and county.
• Price: Another big factor is the price per square foot to rebuild in your area, based on current construction rates. Why does this matter? Because if your house is damaged or completely destroyed and you need to rebuild, your insurer will be footing the bill.
• Natural disasters: The cost of your homeowners insurance also depends heavily on the likelihood of destructive natural disasters or other incidents. In other words, the more known risk there is to your home, the stiffer the homeowners insurance premium.
• Personal information: Your credit score, age, and other personal factors also play a role in your home insurance costs. A higher credit score and few or no insurance claims usually result in a lower rate for home insurance. Generally speaking, the older you are, the lower your premiums. Why? Because older people are less risky for insurers to cover—they tend to spend more time at home, particularly if they’re retired, which means they’ll catch a house fire before it gets out of control.
• High-risk features: Your homeowners insurance company will also factor in high-risk home features, including swimming pools, trampolines, and even your dog. (Certain breeds have a reputation for being more aggressive, which could lead to expensive insurance claims if your dog bites someone.) Similarly, adding safety features such as a home security system or fire sprinklers can help lower your home insurance rates.

How to find the best price

To determine how much you’ll pay for home insurance, contact a few insurance companies by calling to chat with an agent or by filling out a form on their website. After you share some information about you and your home, they’ll run this information through their own algorithms to come up with a quote on how much your insurance will cost. But here’s the thing: Since each insurance company uses its own formulas to determine a property’s risk levels, each may offer different rates. To get the best price and policy, it pays to shop around.

Many homeowners go with the first homeowners insurance policy quote they get in order to cross one more thing off their list during a move or the home-purchasing process. And that could be a big, costly mistake because you may pay more. But the cheapest home insurance option isn’t always the best, either.

Ask the agent to explain why the homeowners insurance premiums are different and what the trade-offs are in liability coverage and deductibles. And this isn’t just something you should do when you first buy a home. Every year, you should review your homeowners insurance, including your liability coverage, premium, and deductible.

Making the leap from being a renter to homeowner is a process that includes taking stock of your financial situation. For most people, the primary question is affordability. Do you have enough cash in the bank to fund a down payment, or do you have a credit score high enough to qualify you for a home loan? But there are other considerations, and plenty of misconceptions and myths that could keep you from making that first step.

You’ll need to put 20% down

Contrary to popular belief, a 20% down payment is not required to purchase a home. There are several low down payment options available to all types of buyers. These are as low as 0% down for VA loans to 5% for conventional loans. One of the main reasons buyers assume they must put down 20% is that without a 20% down payment, buyers typically face private mortgage insurance payments that add to the monthly loan payment. The good news is once 20% equity is reached in a home, the buyer can eliminate PMI. This is usually accomplished by refinancing their loan, ultimately lowering their original payment that included PMI.

You need perfect credit

Having a credit score at or above 660 looks great to mortgage lenders, but if yours is lagging, there’s still hope. Credit score and history play a significant role in a buyer’s ability to obtain a home loan, but it doesn’t mean a buyer needs squeaky-clean credit. There are many loan solutions for buyers who have a lower than the ideal credit score. Government-backed loans insured by the Federal Housing Administration have lower credit and income requirements than most conventional loans. A lower down payment is also a benefit of FHA loans. Lenders often work with home buyers upfront to discuss how to improve their credit to obtain a loan most suitable for their needs and financial situation.

It’s a bad time to buy

Buying a home at the right time, during a buyer’s market or when interest rates are low, is considered a smart money move. But don’t let the fear of buying at the “wrong time” stop you from moving forward. If you feel like you’ve found a good deal, there is truly no bad time to buy a home. The famous saying in real estate is ‘I don’t have a crystal ball,’ meaning no one can predict exactly where the market will be at a given time. If a buyer stays within their means and has a financial contingency plan in place if the market adjusts over time, it is the right time to buy.

You’ll be stuck

Some people may be hesitant to buy because it means staying put in the same location. Plan to stay in a newly purchased home for a minimum of three years. You can ride out most market swings if they happen, and it also gives you a sense of connection to your new space. In a healthy market, homeowners will likely be able to sell the home within a year or two if they need to move, or they can consider renting out the property. There is always a way out of a real estate asset; knowing how and when to exit is the key.