Is it Cheaper to Buy or Build Your Custom Home?
Everyone has their picture of what a perfect home is. Most people turn their idea of a perfect home into a reality by building their dream house. In contrast, others find their dream house in an already existing home. Deciding to either build or buy a house can be extremely difficult for most people. Several factors may sway your decision, like your financial situation or the time limit to find a house. Whether you buy or build your home, knowing the pros and cons of each choice is necessary.
Buying vs. Building a Custom Home
There are many pros and cons to building or buying a home, but the cost is the ultimate deciding factor.
In 2019, the average cost of building a house was about $485,000, while buying would have cost $310,000. The math is simple: you could save up to $177,000 by buying an existing home rather than building a new one.
In 2022, the cost of buying a house has increased by 15%, while the costs of building materials have increased by 19%. With the addition of labor costs and fuel, building a new custom home would be even higher. Therefore, it is safe to say that buying a house is cheaper than building a custom home.
Financing a home seems the better choice, but the cost does not only mean finances. What about satisfaction and emotional fulfillment? While many would argue that building a custom home would bring more fulfillment than buying a home, perhaps, other home buyers would argue otherwise. Settling the debate on this matter would largely depend on individual preferences. However, sometimes it is not always easy to make the right decision.
Below are the pros and cons of buying and building a home that may help you make the right choice.
Pros of Building a Custom Home
Hiring a custom home builder simplifies things. Here is a look at some of the reasons why it may be a good choice:
Building your own home from scratch will give you the freedom to design it according to your preference and lifestyle. Every detail, from the flooring to the layout, bathrooms, and lighting, will be according to your choice. Even furniture and room color will have your personal touch.
A newly built home will have all the required up-to-date technology and meet the new safety rules and standards. Therefore, there will be no extra cost needed to install something. It will also not need expensive repair or maintenance for the first few years.
A newly built home will be more sustainable as it will have newly launched energy-efficient technologies. These will also lead to lower energy costs and cheaper electricity bills.
Cons of building a house
One of the biggest disadvantages of building a house is the cost. But what are other disadvantages to consider? Let’s find out:
Building a house is a huge project that will take several months to complete. So, it will take quite some time before you can move in. Furthermore, if you stay in a rented house during the construction period, you will have more expenses.
From cost negotiations to picking the right designs for the exterior and interior, house construction is a big project to take on. There is a lot of planning and decisions that need to be made. Sometimes this can lead to disagreements and a clash of ideas. You will need a lot of energy and perseverance to manage all the little details.
There will be a lot of unexpected costs that come up during construction. There may be upgrades required or things to be changed, and sometimes unexpected problems may cause delays, or even a shortage of labor will lead to an increase in costs.
Pros of Buying an Existing House
As we have seen, buying a house is more cost-effective than building. However, it does have its advantages and disadvantages. Here are the pros of buying a house:
You can buy a house anywhere convenient for you, even in urban areas and cities. You can also immediately move in after all the paperwork has been finalized.
Can be renovated at any time
After you buy a house, it is up to you to renovate it at your own time and pace. You can choose to renovate immediately or wait until you have the time and money. You also have the freedom to change the interior to fit your personal style.
An existing house will have already mature landscaping. This will save you a few hundred dollars which will decrease costs when compared to building a house and getting the landscaping done.
Cons of Buying an Existing House
Buying a house in itself may be quite difficult, especially an old one which might give you a few problems. The cons of buying a house are:
Real estate competition
The real estate market is competitive, and you will find that it is not a walk in the park to find a good house at a good price. Searching for the perfect house can be stressful and time-consuming, especially in the current market trend, where buyers face higher prices, bidding wars, and easily rejected offers.
Buying a new house comes with quite a few problems if you are not careful. Old houses will need a lot of maintenance and repairs. It will also have a lot of outdated technology that will need to be upgraded.
Old homes do not have the latest technologies installed, leading to higher energy consumption and higher electricity bills. They are less efficient when compared to a newly built house.
What Do You Say?
Considering all the pros and cons, it can still be quite a coin toss to decide which would be a better choice. If cost is not a limiting factor, building your own custom home in Mayfair offers personalization options, easy maintenance, and energy savings. Contact us today to learn more.