Should I Build, Buy, or Renovate in Tacoma? A Remodeler’s Take
The majority of Americans today believe that owning their own home is an integral part of the American Dream. And owning the home of your dreams? Even better. There are many paths you can take to home ownership: you can buy new, build a home, or remodel an older home. Which is the best option for you? The answer depends on a variety of factors. Each option has its own benefits, drawbacks, and considerations, especially in the Tacoma area. Read on for help making this important decision.
Building a New Home in Tacoma
Building a brand new home is exciting, challenging, and rewarding. There are multiple ways to build new, from finding a lot and hiring a contractor and team, to buying a lot in a development and using their builder and plans. Building a home is a big decision, with pros and cons to think about.
Building New: Pros
Full customization. When you’re building from scratch, you get to tailor the layout, finishes, systems, style, and floor plan to your exact preferences. Want a movie room or a home gym? Done. Have a lot of kids and want each one to have his or her own room? You got it. Love baking and want a large butler’s pantry equipped with counters and a sink so you can spread out? It’s an easy yes. You can make every detail of your new build perfect for you and your family.
You’re the first owner. Rather than inheriting a house that may have issues or quirks from the previous owners, you get to benefit from being the first one to ever live in this home. Everything is fresh and brand new. That’s a great feeling.
Builder incentives. If you’re purchasing a lot in a development, there are often incentives like closing cost assistance, free upgrades, or rate buydowns offered to seal the deal. These can help you get into a home or afford something nicer than you’d be able to swing on your own.
Energy efficiency. New systems and materials that are up to modern standards usually mean new houses are much more energy efficient than older ones. This translates to lower utility bills, better performance, and a smaller footprint. It’s better for your wallet and the planet.
Building New: Cons
Higher upfront costs. While you often save money in the long term on a new home (fewer repairs, etc.), the upfront cost of building can be high.
Longer wait time. Building a house can take several months to a year. It’s a long and involved process, and move-in is not immediate. This means that you will need another place to stay while you’re building, which can be cost-prohibitive or logistically complicated for some.
Fewer “steals.” You’re not usually competing in bidding wars to buy a lot and build new, but you’re also not likely to get an amazing deal. New homes aren’t typically discounted.
Key Considerations When Building New
While building new means a high initial investment in your home, the long-term value is strong. Because new homes generally require fewer early repairs, you will save money in that area, and your home will likely appreciate well.
Remember to think through the construction timeline—will it work for your family’s needs? This could be a deal-breaker for some. You could always plan to rent a home while you build, move in with family for a while, or build before you sell your current house, if that’s a financially viable option for you.
Your home’s final cost will be dramatically affected by the size of the home, the materials and upgrades you choose, and the preparation that needs to go into the lot. Talk through these variables with your builder early on so you won’t be surprised by the final cost.
Building a new house can be a great experience and a way to get exactly the home you want—just go into the process with your eyes open.
Buying an Existing Home in Tacoma
Buying a home is exciting, whether it’s a new build or an existing home. Sometimes a house will check enough boxes on your wish list that it really makes the most sense to go for it. The housing market in Tacoma is steady and competitive, but not overly frenzied, which means you have a good chance of getting a great house.
Buying Existing: Pros
More affordable upfront. Housing prices in Tacoma are lower than in places like Seattle, and buying an existing home in Tacoma is often less expensive than building a new one.
Faster move-in and less work. When you’re buying an existing home, you can close and move in within weeks—not months. This often means a much easier transition. Buying an existing home is a great move for people who don’t want a long building process full of choices.
Established neighborhoods and more location options. When you buy an existing house, you have access to neighborhoods with mature trees and landscaping, community amenities, and character. You’re joining a community that’s been there a while, instead of starting from scratch. You also have more choices if you’re willing to buy an existing home. There are generally more homes available in locations that might suit your needs perfectly.
Buying Existing: Cons
Not everything you want. You will likely sacrifice items on your wish list if you buy an existing home. It’s rare for a home to check every box for you, so you and your family may need to make some decisions on what things are must-haves and what are want-to-haves.
Limited customization. Unless you want to plan a remodel on your new home, you get what you get. You can’t customize a space to your desires and needs without doing work on it.
Potential repairs. Older systems, materials, and finishes may need attention. Buying an existing home means making necessary repairs and also updating spaces that need it.
Competition. If you want a move-in-ready home, you may be dealing with a property that attracts multiple buyers. Turn-key homes tend to sell fast, so you will need to be ready to make a good offer quickly.
Key Considerations When Buying an Existing Home
When you’re thinking about buying a home, remember that financial experts suggest that around 30% or less of your monthly budget should go toward your housing. If you’re a first-time homebuyer, ask your lender about down payment assistance and incentives that may help with affordability. And remember that your credit score is important! A better score will unlock better terms and interest rates for you.
Remodeling a Home in Tacoma
There’s a third option to owning the home of your dreams in Tacoma: remodeling. Whether this means renovating the home you already live in or moving to a new place and remodeling it, this option allows you to make your home your own.
Remodeling: Pros
A potentially bigger home. If you buy a fixer-upper, you may be able to afford more square footage than you would get in a similarly priced move-in-ready home. More space means more options to make the home perfect for you and your family.
Full control over the final result. As in building a home, when you’re remodeling, you get to make all the decisions. If you work with a design-build team like Massey Remodel + Design, you will have the professional help of a designer who listens to your wants and needs and gives you guidance and suggestions to bring your dreams to life.
Renovate at your own pace. You could do a whole-home renovation and get it all done, or you could remodel slowly, room by room, as your budget and schedule allow. This is an easier option for some.
Improved efficiency. Remodeling a home gives you the opportunity to upgrade insulation, windows, and systems, making them as energy efficient as possible. This reduces long-term costs and your home’s environmental impact.
Remodeling: Cons
You can’t change everything. When you remodel an existing home, not everything can be changed without a full teardown. The home's basic footprint and layout will likely remain the same (though some changes are possible). If you dislike the bones of the house, you may not be able to fix that with a remodel.
Potential unpleasant surprises. It’s always a possibility that you’ll encounter higher-than-expected costs or delays based on outdated systems or previously unknown issues. A good remodeler will help you plan for these possibilities and will craft a contract with these possibilities in mind (read about our fixed-price contracts here).
More decisions and stress. Design choices, permitting, living in a construction zone, and everything else that goes into the remodeling process can be overwhelming. While a good design-build team will help with this, if walking through a remodel seems like too much for you, maybe a move-in-ready home is a better option.
Key Considerations When Remodeling a Home
A great place to start when considering a remodel is thinking through what you want your home to be like, and then discussing those plans with a design-build remodeler. They can help you through the process from start to finish.
Remember to set a realistic budget that includes a contingency fund—typically 10-20% of the total cost. A remodel can be a great investment if you plan projects that will increase your ROI and improve resale value, while also increasing the functionality and livability of the space.
Finally, choose the right team. An experienced design-build firm makes planning, budgeting for, and executing your Tacoma home remodel a smooth and enjoyable process.
The Path You Choose
Each path to your dream home—building, buying new, or remodeling—comes with unique benefits and challenges. Consider your priorities, goals, budget, timeline, and lifestyle as you think about which choice is the right one for you. And if you need more specific advice, we’re here to help. Reach out to us to talk through your options and for design and remodeling guidance. We’re here to make your Tacoma area home the best it can be.