It is probably safe to say that all of us have dreamed about the prospect of building our own home. The idea of building a home that is tailor-made for your lifestyle and activities is just too good to resist. However, reality does not always allow us to do the things we would like to do.
This article will attempt to help you to make the decision between value and quality. It is possible to strike a good compromise between your dreams and your limitations, and we hope that we can help you to do exactly that.
Which Is Cheaper: Buying Or Building?
On the surface, this would seem like an easy question to answer. Having a home built is almost always more expensive than purchasing an existing home. However, that factor is only true when we look only at the price of the home itself. There are a few different factors that influence the situation and complicate the question.
For a start, let’s look at some statistics. Numbers for the construction of new homes have been steadily rising over the last five years, going from about 400,000 units in 2014 to about 673,000 in 2019.
These numbers are encouraging because they show that plenty of people are still able to get their own custom homes. With over half a million new homes being built each year, it stands to reason that you don’t have to be rich in order to get one.
By contrast, the average price for an existing home in the United States is on a downward trend. Although there is no guarantee that this trend will continue, the numbers do show a steady price decrease over the last year. This is pretty good news if you’re on a budget. In market conditions like these, it shouldn’t be too hard to get a quality home at a reasonable price.
Advantages Of Buying A Home
Buying an existing home is cheaper when you look at the selling price alone. According to statistics that we have already presented above, the average cost of an existing home is currently about $270,000. This means that (on average), you will save about $60,000 by choosing this option.
Maintenance costs are almost certain to come packaged with an existing home. Although the place should be in good shape at the point of sale, it won’t be long before something needs to be repaired or replaced. In maintenance costs, buyers of pre-existing homes are probably going to spend more money than those who buy new homes. Also, there is a chance that older homes will require expensive upgrades in order to remain compliant with current building codes.
Speaking of which, older homes are more likely to be poorly-sealed. This means that you will have to spend even more money to save money. A poorly-sealed home can cause a lot of money to fly right out the windows and doors. Older homes can end up becoming money pits if this problem is not addressed.
We should also mention satisfaction as a factor. When you buy a pre-existing home, you are giving up the opportunity to make a living space that is perfect for you. You might very well be able to find something with which you can be happy, but even small dissatisfaction has a way of gnawing at you. As such, you should make sure that an existing home provides everything that you consider essential in a good home.
Advantages Of Building a New Home
As we already mentioned, the cost of the home itself will be higher when you choose this option. The average price for a newly-built home in 2019 is $332,000. However, this study found that construction costs only made up about 55% of the final sales cost. This is why you have to consider other factors before making a choice.
One of those factors is maintenance. A new home gives you a clean slate with which to work. When you walk into that house for the first time, you will know that nothing will need replacing for a while. This level of surety does not exist with older homes. On average, you can expect to pay much less in maintenance costs for the first few years, if not longer.
One example of this is energy-efficiency. HVAC is by far the number one consumer of electricity in the average home. It accounts for almost half your home’s energy usage, and good sealing is one of the only things that you can do to mitigate that cost. As a new home buyer, you can design your home to be well-sealed from day one.
Satisfaction is another factor to be considered. A custom house will be a source of pride, as the owner shows off their unique living space and brags about the fact that they designed it themselves. Bragging rights aside, everyone wants to have a home that meets their needs and gives them a sense of well-being. It’s hard to put a price on this factor, but the build option definitely gets the edge on this one.
In terms of extras and amenities, building your home also offers certain advantages. Chief among these is the fact that you will only pay for the features that you want. By trimming away the things that don’t really matter to you, it should be possible to trim the overall cost of the project while still creating the home you desire.
This contest did not turn out as expected. Most people would consider it a no-brainer to say that building a home is more expensive than buying one. However, the story changes when we look at all the hidden expenses. By the time you consider maintenance and repair costs, higher home insurance rates, and utility bill differentials, it is actually a little bit cheaper to build your home.
We are glad to bring you quality work like this, and we hope that you will fill out the contact form below so that we can help you even more in the future. Whatever you decide, we wish you and yours the best of luck.