Is It Cheaper to Build a House or Buy One?

Is It Cheaper to Build a House or Buy One

There are many reasons why a homebuyer might be interested in building a house. It can afford you a great deal of choice and control, yet is building more affordable than buying a home on the open market? What about all the complication involved in the home search and, for that matter, in working with a builder?

No single answer is right for everyone, but simply put, buying a preexisting home tends to be cheaper. The costs of building a new home, particularly on an undeveloped plot of land, can really add up. However, there are exceptions, as well as many other factors that could make building a good choice for you. Here’s a little more information about your options.

The Costs of Building a House

If you know exactly what you want and exactly where you want it, building your own home provides a level of control that buying a preexisting home lacks.

Once you’ve chosen a plot of land, selected house plans you like, and worked with an architect to make any necessary modifications, the finished product will truly be yours. Another perk: when you’re working with a reputable builder and subcontractors, you can trust that your all-new plumbing, HVAC, appliances, insulation, and foundation will last a long time.

If you find yourself frustrated by the home search and unable to find a home that ticks all the boxes on your checklist, building a home might be your best option.

However, building a house naturally means waiting a lot longer to move, frequently even longer than you expect due to delays. And just like the timeline can get extended, budgets can also inflate as issues crop up.

It also means buying a plot of land, connecting yourself to the utilities, acquiring the right permits, vetting contractors and other service providers, buying new appliances, and numerous other headaches. For most people, having a home built can prove far more daunting and expensive than simply buying one on the market.

If you aren’t finding what you want but you aren’t ready to commit to building, you can also look for a home based on location and potential, and then compare the costs of buying and renovating that home to the cost of building a new one.

The Cost of Buying a Home

Brand new homes are often cheaper than building because contractors can buy materials and labor at a cheaper rate than you will likely be able to (after all, the builder has to make a profit). Of course, existing homes may be more affordable for a number of reasons: features or condition of the home or landscape, motivated sellers, older appliances, or necessary renovations, for example. Things like the cost and time investment of landscaping are an obvious advantage over building.

With existing homes that need little or no renovation, you will have a much clearer idea of what the final cost will be. The home inspection process gives you a look at potential problems, so you have a chance to decide whether you want to take them on.

In most cases, buying a home allows for a faster, less stressful experience with far fewer hoops to jump through. For those who value simplicity, or simply don’t have a lot of time to wait, buying an existing home is undoubtedly the best option.

Ultimately, for the large majority of people, buying a home will be the cheaper option. However, for those with the extra time and money, building your home can bring its own unique sense of satisfaction.

If you are looking for a new home in Knoxville, explore our listings. At Holloway-Westerling, we’ll do everything we can to help you find the perfect home at the perfect price, whatever your needs.

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