Building vs Buying a Home (Pros & Cons of Both)
Are You trying to decide between building vs buying a home? This guide will help you know all of the pros and cons of building your own home vs buying!
Nexstar Homes builds high-quality, energy-efficient homes that fit every lifestyle need. We always want people to make the right choice for themselves when deciding whether they should build or buy a home. This guide will help you better understand the pros and cons of building your own home vs buying a home.
To build or to buy? That is the question.
There are so many factors to consider when considering whether you should build a new home or buy an established home. You’ll need to learn about the differences in cost, the amount of time involved, and the benefits each option has to offer.
Get all the details about building vs buying a home and see what direction you should go.
Pros and Cons of Building Your Own Home
The prospect of building a home can feel both exciting and stressful all at the same time. It tends to be a longer process than buying a home that is already built but also has a wide range of benefits you can enjoy.
Building a Home - The Pros
Customization
Among the most popular reasons to build your own home is the high level of custom options you’ll have access to throughout each step. You can customize many aspects of the property and make it your own. This includes everything from choosing the cabinets and countertops to whether you want a closed or open floor plan.
Choose Your Lot
Going with new home construction means you get to build in the community or area where you want to live. You’ll get to choose your lot and ensure you get a home that is close to nearby amenities or destinations that are important to you.
Less Maintenance
A new build home will be exactly as it says: new. That means you won’t have to worry about going through constant maintenance and improvements to the property, which could mean hundreds or even thousands of dollars.
Price
In many cases, a reputable home builder will give you a beautiful new house that is more affordable than the cost to buy one that is already built. While this will depend on the features you choose, it is possible to pay less for a new construction home.
Less Competition
Some housing markets are highly competitive, which makes it nearly impossible to get the home you want at a price you can afford. Buying a new build home prevents any competition or bidding wars during the process.
Energy-Efficient
As technology advances and new strategies are developed, new homes are constantly becoming more energy-efficient. Among the biggest pros of building a home, your utility bills will be lower, and you’ll be comfortable in your space no matter what the temperature is outside.
First Owner
When you build a home, you get the instant advantage of being the first person to live in it. You’ll be the first one to create memories and make them your own.
Building a Home - The Cons
Complex Loans
As you consider building vs buying a home, you’ll find some differences in the lending process. New construction home loans can be a bit more complex if you don’t work with a reliable and experienced lender from the beginning.
Longer Process
When building a new home, you will have to wait for the construction process to be completed before you can move in. Depending on the size of your property, it could take anywhere from three months up to a year for the home to be built.
No Price Negotiating
If you are considering building a new home vs buying an existing home, you won’t have as much of an opportunity to negotiate a lower price. Instead, you will be paying for the cost of materials and labor that go into the construction process.
Noise
Oftentimes, when you build a new home, there are other people who are doing the same within the area. This means there may be some temporary noise as construction crews are working on nearby properties.
Pros and Cons of Buying a Home
Purchasing a home that has been previously built has its own set of advantages and disadvantages. There are a handful of differences between the cost of building a home vs buying, along with other variables.
Building a Home - The Cons
Move-in Ready
If there is one reason someone decides to buy instead of building a new home, it’s so they can move in faster. Since these properties are already built, you can go through the lending process and get into the home as soon as escrow closes.
Live in Developed Areas
When you buy instead of build, you’ll find more options in areas that are already developed. That means living in a community that is established and has relevant amenities nearby.
Make Home Renovations
Some may feel like this could be either a pro or a con of the homebuying process. But when you purchase a home that has already been lived in, you’ll have the opportunity to do renovations and customizations to make it your own
Mature Landscaping
When homes are first built, the landscaping tends to take some time to grow and develop. But if you buy an established property, it will most likely already have mature trees and other landscaping that is grown.
Building a Home - The Cons
Higher Upfront Costs
A home purchase comes with its own list of fees and upfront charges, which are often higher than they are when building a new property.
Bidding Wars
Many real estate markets are very competitive, which could lead to major bidding wars. These competitions drive up the price of a home and mean more money out of your pocket.
Limited Floor Plan Options
If you want to buy a house, then you only get what is currently available on the market. Your choices will be limited to what is for sale within the communities where you want to live.
More Maintenance
Almost every time you purchase a home from a previous resident, it will require some repairs and improvements. These properties also need more maintenance than new homes since the appliances, and other features have already been used.
Less Customization
When you buy a previously-built property, you’ll have less flexibility for customizations and making it your own. If you do want to make home renovations, these changes will all come out of your pocket and will require that the old features be removed first.
Not as Energy-efficient
Another con of buying a home vs building is that the appliances and other parts of the home won’t be upgraded or as up-to-date. Everything from the AC unit and oven to the water heater and dishwasher may not have the same level of energy efficiency as a new build.
Is It Cheaper to Build or Buy a Home?
It’s essential to understand the cost of building a home vs buying and how these two options differ from each other. The best way to determine the price difference is by learning about the costs involved in home construction.
Is building a home cheaper than buying? The construction process includes building the house shell, interior finishes, mechanical, electrical, and other costs. The price involved with each of these steps will depend on where the home is located, the amount of labor required, and the size of the property.
While this may sound like a lot of costs, it is often possible for new construction homes to be less expensive than buying a house.
Should you buy or build a house?
The only way to decide is by weighing the pros and cons of building your own home vs buying a house. While buying may be better for one person, you may find that building a new construction home is right for you.
You’ll need to consider the wide variety of factors involved, such as the upfront costs along with the initial and ongoing maintenance costs.
If you decide that building a home is the right choice for you, the team at Nexstar Homes is the best option! Check out our spacious floor plans and see the many options available!