For home buyers, cost commonly determines whether they build or buy a home. Buying a home is an energy-consuming endeavor and is looked upon as a serious commitment and investment. Building one typically takes longer but provides homeowners with exactly what they want. There are equal pros and cons to both. Is it better to buy a home or build one? Let’s examine both sides.
While the initial outlay of capital to build a home is substantially more, newly built houses can save homeowners time, money, and stress. Money aside, buying or building a home is also dependent on the level of satisfaction you’re after. It’s hard to beat the feeling of living in a house that was specially designed and built for you.
Not only will your new house be structurally sound, but it will also be built exactly the way you want it. Customization offers the opportunity to tailor aspects of your home to your preference. It’s a home for you, by you. From the layout to the flooring, your new home will perfectly reflect your taste.
The average cost to build a new home in 2023 starts at $500,000. This ballpark figure is dependent on region, size, and materials. It’s not as simple as just building — you need to factor in the costs of buying a lot, drawing up plans, procuring permits, and preparing the land before construction begins.
Is it best to buy or build a home? If you truly want the home of your dreams and have the budget, it is far better to build.
Buying a newly constructed home can be a fitting solution if you’re on the fence about whether to build a new home or buy an existing one. It offers the advantage of new finishes and contemporary design without the hassle of hidden maintenance costs.
There’s a lot less to decide upon compared to building a home from scratch. New housing developments may provide options for interior finishes like countertops and cabinetry, but beyond that, they’re generally designed with a cookie-cutter approach.
Unless you’re buying property off-plan, the process is much faster than waiting to complete building your own. On average, it takes about five months to buy a home, depending on how long you shop around for, which is still less time than building.
The age of a home and its location affects the price. Midwest homes cost less than homes on the West Coast, which are considerably more expensive. Bear in mind that this is just the price of the home, excluding any furnishing, appliances, or remodeling that homebuyers usually spend an additional $8,233 on.
The financial consultant company Ramsey Solutions offers the following data on the average cost of buying a home:
| REGION | HOME PRICE | VERSUS 2020 |
|---|---|---|
| West | $468,000 | Up 14% |
| Northeast | $354,000 | Up 17% |
| South | $270,000 | Up 15% |
| Midwest | $239,000 | Up 15% |
Buying a new home provides almost the same benefits as building one but with added convenience.
The National Association of Realtors published that as of February 2021, every home that was sold in the US had an average of four offers. Even if you have a substantial deposit, a prospective buyer who offers more may very well close the deal. Unfortunately, if you have a limited budget and can’t counter the offer, there’s not much you can do.
Another factor to consider is the age of a property’s internal systems. Older houses may need electrical and plumbing upgrades. Other health hazards may include asbestos, mold, and pest problems that lead to structural damage. Well-maintained, charming houses with historical charm aren't exempt from these drawbacks, which can add unexpected costs.
Building a new home is more expensive, but it can save costs long-term, eliminating pricey maintenance upgrades and potential renovations. So, is it better to buy a home or build one? It truly depends on your individual circumstances. There is also the option to remodel an existing home, which combines the best of both worlds.
At Zenith Design + Build, we can remodel your existing home to add more space and give it a contemporary upgrade. From the floor plan to the interior design, we offer a comprehensive service that makes renovations easy. Click here to discuss your home aspirations with us.