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To Buy or to Build?

Depending on your perspective, this could be the best or the worst time to be house-hunting. Houses are selling fast and appreciating quickly in value, which is good news for both the buyers and the sellers. The downside, however, is that inventory is low. Buyers may become frustrated as bidding wars become more common with multiple buyers interested in the same home.  So instead of waiting for the perfect house to come on the market, many buyers are considering building new homes. Existing homes, as well as new builds, each have their own set of pros and cons to consider. Our team at GVC Mortgage is here to help you explore both options from the perspective of a home buyer in a low-inventory housing market.

To buy or to build

Buy Existing


  • If you purchase an existing home and are pre-approved, you can usually move in right after you close.
  • You can see the home and have it appraised and inspected before making your down payment.
  • You can purchase in an established neighborhood with mature trees.
  • No waiting for landscaping or other weather-related items, such as sprinkler systems.


  • With an existing house, it is unlikely that everything will be in pristine condition. You will have to work with normal wear and tear.
  • Lack of availability in the recent real estate market can be frustrating; you may face a bidding war.
  • You may not get to know the entire history of the home.
  • It is unlikely that you will get all of your boxes checked. You will likely have to compromise on floor plan, yard, or location.

Build New


  • Get what you want: Buyers who choose to build often do so after multiple, failed attempts to find what they want on the open market. This is a huge pro for homeowners with a vision of their perfect home.
  • New homes are just that: New! No wear-and-tear or surprise defects.
  • For the first few years, you’re less likely to deal with big-ticket maintenance issues like leaky roofs or failing heating and cooling systems. Plus, many homebuilders offer a limited warranty, so you may be covered if something should break.


  • Time to close: It will probably take between 6 to 12 months to complete a build project from foundation to finish work. And if you’re looking to sell your current house first, the timing can be tricky.
  • The closing date is dependent on many factors and could change. Weather-related delays, contractor shortages, and supply chain issues may result in a later closing date than originally planned.
  • Weather-related items like landscaping, sprinkler systems, and some finish work can only be completed during certain seasons.  So even if your home is ready to move into in December, you may not have grass or landscaping until the spring.
  • Construction loans may involve two closings, which can mean extra paperwork and an additional credit check.

Let Us Help

Are you ready to begin looking? Whether you’re leaning toward building or buying an existing home in the Indianapolis area, GVC Mortgage’s loan specialists can help. Contact us today at (317) 564-4906 for more information on what type of home loan is right for you. Getting pre-approved for a home loan is the first step toward owning a home you will love!

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