Every year, more than 5.3 million existing homes are purchased and 682,000 new homes are built.
When it comes to choosing between buying a home or building a new one, you’ll have a lot of big decisions to make. One is whether a custom build is in your budget, or if buying an existing home would be more affordable.
Is it cheaper to build or buy a home? Keep reading to find out.
Is it Cheaper to Build or Buy a Home?
Unfortunately, it’s tough to say for certain whether building or buying a home is more affordable.
Because so many details go into each option, the costs will vary. You might be able to find a two-bedroom, two bathroom home for less than what a custom builder would quote you for the same size. But there are other things to consider, like upgrades to the home or other features that a custom home might have.
The best way to determine whether it’s better to build or buy a home is to consider the costs that go into each option.
Costs of Building a Custom Home
Many people new to home buying assume that the cost to build a home will always be higher. However, that may not be the case.
When you’re building a home from the ground up, you have more freedom in deciding the details of your home. Building a smaller home or skipping on luxury features can help you save money.
Another way to save on a custom build is by finding land that is affordable. When you buy a pre-built home, you’re also buying the land. If the land is high-value, that will drive up the cost of the home.
But if you can find a good price for a plot, this will help to lower the overall cost of your home.
The most important way to keep costs in check when building is to choose the right custom home builder. They will be able to help you find out what your options are within your budget and help you build the home of your dreams.
Costs of Buying a Home
Building a brand new, custom home with a variety of features will drive up the cost of a home. If you’re on a tight budget, buying an existing home is a good way to keep costs in check.
However, it’s important to consider the future costs that you may face as well.
A new home won’t need a new roof, floors, or appliances for at least a few years. But buying an inexpensive home might leave you with costly repairs, upkeep, and upgrades to deal with.
Finding Your Dream Home
So, is it cheaper to build or buy a home? The answer depends on what your dream home looks like.
Considering the many costs of building or buying an existing home will help you make the most of your budget and get a home that you love.
If you found this article helpful, check out the rest of our blog for luxury home listings, design tips, and more.