When relocating, upsizing, downsizing, or looking to own a home for the first time, it can be challenging to know which of these paths to follow.
Ultimately, I think the answer to this question varies from person to person! The needs, wants, and preferences of each individual will motivate their decision. As I have seen client after client unlock new doors over the years, I have discovered three helpful areas to compare that I would love to share with you. These can help clarify the unique values you hold, helping you to make a more informed decision as to whether building or buying is best for you.
- Cost. In general, it is cheaper to buy an existing home than to build one. Though the market is constantly changing, and each circumstance is different, studies show that building a home is around $60,000 more expensive than buying one. Especially right now in our economy…lumber is SO expensive right now – almost a record high! However, a newly-built home will also have less maintenance and repair costs, compared to buying an existing home where appliances, roofing, HVAC, or any number of other things may need to be repaired. Or maybe you have a very specific idea of which style you are going for in a home, and lots of updates or minor remodeling may be necessary, which would increase the overall price.
- Time. On average, it takes about 8 months from start to finish to build a new home, and many factors could cause that timeline to fluctuate. On the other hand, closing on a home generally happens any where from 30 days to 60. So, if your family has a certain timeline in mind, you may have more control over exactly when your home will be move-in ready if you buy. However, if timing is not your top priority, then building may still be a good option for you!
- Customization. You may have to ask yourself which is more important to you: customization or convenience? If there is a long list of specific things you are not willing to compromise on in a home, chances are that buying an existing home will mean lots of updates and changes, and several compromises. In this case, it may be a better option for you to build. If you are someone who would rather not have endless decisions to make and would rather move into a home that has already installed flooring, countertops, and light fixtures, then buying may take a load off of your shoulders! Once again, it all comes down to personal preference.
Many of these factors can change, depending on the season of life you or your family is in, as well as the state of the housing market. Feel free to take this process slowly and weigh out the pros and cons of each decision. I am always more than happy to answer questions and walk you through the process! Here’s to you: unlocking new doors, whether building or buying!