If you’re considering building or buying a house, you may be wondering which option is the most cost-effective.
As of October 2022, new houses sold in the U.S. have a median sales price of $493,000, according to the U.S. Census Bureau. Comparing that to the $379,100 median sales price data for existing-home sales from the National Association of Realtors, your choice should be straightforward, right? Think again.
Building a house has advantages, such as customizing it to your needs and preferences. However, buying a house can also be a good option, saving you money. In this blog post, we’ll discuss some pros and cons of buying and building a home so you can make the best decision.
Buying an Existing House
Convenience and cost are the primary considerations for a would-be homeowner to buy an existing home.
This option is excellent for you if you have a tight schedule and are looking for a move-in-ready house. Unlike building a new home, you don’t have to wait. An existing home can also be a preferable choice if you want to live in a specific established community close to your place of employment, your child’s school, friends, and family. Also, if you have your heart set on a particular neighborhood, buying a home might be easier than looking for a lot to build on.
As to cost (depending on how good you are), you can negotiate the price for real estate already on the market. For instance, if a house you want has been listed for quite some time, the seller could be ready to negotiate a lower price, or if a similar property is listed for less money, you can use it as evidence for a lower offer. Considering that buying an existing home is already cheaper than building a new one, it’s easy to understand why many people go on this path.
Things to Consider
While buying an existing home may be attractive because of cost, you must remember a few things.
The biggest drawback of purchasing an existing property is that you won’t get exactly what you want. Whether it’s new construction or a lived-in home, you only have a few customization options.
If it is an older house, you may have to make repairs sooner than you think, depending on the age of the home. Additionally, you’ll probably spend more on insurance than you need to cover a brand-new house.
You will need to spend extra money on renovating, repairing, decorating, and landscaping unless you find an existing property that has everything you need and is in excellent condition. When weighing the costs of various properties or comparing the price of building your own home, these extra costs should be considered when calculating the total price.
Building your Dream Home
From the layout, cabinetry, floor tiles and countertops, lighting, and doorknobs, you can completely customize a home when you build it from the bottom up to suit your preferences and lifestyle.
You can construct “green” for a longer-lasting, more sustainable home by using energy-saving and environmentally friendly appliances, toilets, plumbing fittings, and electrical fixtures. Additionally, you can build using materials that are better for the environment. For example, lead paint, asbestos, or mold may be present in older houses, so building a new home is better for you and the environment. Finally, your energy and utility savings from building a sustainable home will offset the upfront cost.
Even though the initial costs of building a new home can be higher, getting your money back may be easier. You can make more money selling your new home as most people would rather live in a newer house than an older one. So if you ever need to sell in the near future, finding a buyer would be easier.
Things to Consider
The most significant downside to building a new home is time. You can build a single-family home in around seven months. So if you are in a hurry and need to move in ASAP, there are better options than this.
Another thing is the cost. Although you’ll have a spending plan in mind before you start the job, there will almost always be costs you weren’t planning on or materials you end up paying more for, which can add up to far more than you originally intended to spend.
Additionally, if you are paying rent during that time, you need to consider this as an additional expense when thinking about the cost.
You might start planning to build a new home but then decide that an already-built one is better. On the other hand, you may start looking for a home to find the perfect one that already exists and end up building to get exactly what you want.
In either case, working with a qualified and experienced professional, like a real estate agent or a general contractor, can help ensure the process goes as smoothly as possible.
So if you are looking for a Custom Home Builder in Palm City, FL, reach out to Homes by Aburton, bring us your dreams, and watch them come true!