Each year approximately 40 million people relocate in the U.S. Of these 40 million people, there’s a mix of people building new homes and buying ones that are already built.
The question you may be facing is, what tips the scale one way or another in the build vs. buy debate? Is there a factor that makes this decision easier?
There’s no easy answer here, as it depends on your situation, budget, and other factors. However, there are some considerations that will help you make the right decision for your needs and your family. Keep reading to learn what those considerations are.
Cost Considerations of the Build vs. Buy Debate
Buying a house has different costs than building one. If you purchase a home that’s already built, it means you have to sacrifice your ability to choose some features. It also means you are at the whim of the market.
When there are more homes available to buy than people buying a home, you’ll find more attractive pricing. However, if it’s a sellers’ market, you may face a markup situation you may not see.
If you are thinking about buying a new home, consider the following associated costs:
- The home and land’s initial purchase price
- The commission received by the real estate agent
- The time you have to spend looking for the home
- Negotiating an offer and closing
- Legal and closing fees
- Home renovations to adapt the home to your family’s needs
While all that is true, it doesn’t mean building is hassle-free. Building a home is time-consuming and expensive. Some costs associated with having a home built include:
- The time to build the home
- Cost of the land
- Contractor fees
- The cost of materials and design services
Review the costs of each to determine what option best fits with your financial situation.
The cost of a home purchase is one of the most important factors that sways your decision. While this is true, there are a few other things to consider, too.
Consider the state of supply and demand when you are ready to buy. There are several things you have to do, from purchasing the lot and securing building permits, to hiring a contractor and more. You also have to choose the floorplanyou like.
With all these decisions, buying a preexisting home may sound tempting; however, you still have to decide what type of home you want, the location, and more. Both options require time, work, and a lot of thought, so take your time when making this important decision.
What Option is Right for You?
Even if you begin your home search determined to find the perfect exiting property, you may decide (eventually) just to build what you want. However, you may plan to build, and then later decide an existing home is a much better fit.
Regardless of what you decide in the build vs. buy debate, it’s a good idea to work with a real estate agent or a general contractor. They can help ensure the process goes as smoothly as possible.
If you are looking for more help or just some inspiration for your search, contact us. We make your dreams of a custom luxury home come true.