If you are in the market for getting a new home, you can choose to buy an existing home or build a house of your own. Each option has pros and cons.
Building a home can be expensive and time-consuming. If you buy a home, you are limited to the homes that are on the market. When deciding what is best, you need to think about your budget, your timeframe, and a handful of other factors. Here is a cost-benefit analysis of building versus buying a home.
Building Versus Buying, Which Is Right for You?
Building a new home has a median price of $372,400. Purchasing an existing house will cost $341,600 on average. You can build a new home in about seven months. It takes approximately two months to close on an existing home.
When factoring in the price of building a home, you have to consider the cost of the land. A 22,000 square feet piece of land, just about half an acre, has an average price of $90,000 in the United States. Whereas the median sales price for existing homes across the board, including condos, single-family homes, or townhouses, is $341,600. This means that when you factor in the cost of the land, buying an existing home is an affordable option.
When you purchase an existing home, you are able to look through its purchase history and compare it with other sales of similar homes in the area. This is not possible when building a new home.
The Time Factor
Building a new home takes time. But so do most things that are valuable. When you work with home builders in NC to build a custom home, you have the flexibility of choosing from dozens of floor plans. If there is not a floor plan that you like, you can create a unique home configuration.
When you build your own home in North Carolina, you are able to search for the ideal lot. This includes the location, the size, and the shape of the lot. As you go through the building process, you receive education on financing your home, designing your home, and everything in between.
Building a new home will take you approximately seven months. However, the process is easy, especially when you work with an experienced builder. At the end of the seven months, you are not spending more money to make adjustments to the home so that it is exactly what you want. You get the home of your dreams.
Additionally, you get a home buyer warranty. This includes a new construction structural warranty and warranties on workmanship and systems. It takes a little bit longer, but if you consider the fact that you are going to be living in your home for decades to come, the seven months you wait for it to be built are nothing.
Conversely, if you purchase a home, you will likely be able to close in just two months. Being able to close quickly may be attractive for you if you don’t have seven or eight months to wait for the home to be built.
Additional Factors to Consider
How much control do you want over creating your home? If you are not concerned about having control over the exterior and interior features of the house, then buying an existing home could be right for you. If you want your home to be customized, then building your home from scratch is the right option for you.
It is possible to modify your current home. But this is an involved project. Honestly, it could take more time for you to remodel an existing home than it will for you to build a new home from scratch. And remodeling is expensive. You should expect to pay anywhere between $10 and $60 per square foot, depending on how extensive the remodel will be and where you live. This is on top of the money you have already paid to purchase the home.
The Bottom Line
Purchasing a new home is a big decision. Each person has their priorities, timelines, and budgets. Your aesthetic choices, patience level, and level of desire to be involved in the project will all play a role in determining whether building or buying is the right choice for you.
