Building a home instead of buying one has its advantages, like allowing you to customize it to suit your needs. Nevertheless, the average purchase price of a newly constructed home in 2024 was around $430,700, according to findings from the U.S. Census Bureau. That’s a little bit more costly than the average purchase price of an existing home throughout the same timeframe, as reported by the National Association of Realtors was $393,500.
Building a home instead of buying one has its advantages, like allowing you to customize it to suit your needs. Nevertheless, the average purchase price of a newly constructed home in 2024 was around $430,700, according to findings from the U.S. Census Bureau. That’s a little bit more costly than the average purchase price of an existing home throughout the same timeframe, as reported by the National Association of Realtors was $393,500.
Below Are the Pros And Cons Of Building A Home
Pros
Customization: Having a home built means you get precisely what you want. Rather than wishing your home had a specific type of flooring, a sun porch or some other unique amenity, you are going to be able to customize the home to your specific wishes.
No competitors: When building a home, it takes any to-and-fro with competitive buyers out of the situation. You additionally will not have to be concerned with the price being offered up by multiple bids.
Move-in ready: When everything in your home is new, you shouldn’t be concerned with any repairs (at least in the beginning), and the contractor’s warranties should cover any issues that come up in the initial year.
Greater market attractiveness: Your home is at the end of the day an asset, and when the time comes time to sell, a newer building could provide you with a competitive advantage.
Cons
Longer timeline: Whereas you are going to save time on going to open houses and combing through online listings, you are going to have to wait to move into your brand-new home. As reported by 2023 Census data, a contractor-built single-family home took almost a year from beginning to end. If you are additionally paying rent throughout that time, that’s an extra expense to consider, also.
More decisions: A blank slate means you can easily customize your home; however, it also means you are going to have to make a lot of decisions. If you’re occupied with work and family, it can be difficult to focus on every part of the construction process.
Contractor difficulties: Postponements, lack of understanding, subcontractor challenges — there are plenty of snags that can occur when having a home built. Make sure to investigate a few various contractors to understand their work strategy and timeline and be prepared for hiccups. Include time-is-of-the-essence, continual-manning and authority-to-remove provisions in your agreements with the professionals you hire — these can aid in safeguarding you in the case of postponements or failure to perform.
Cost exceeds: Whereas you are going to have a budget in mind at the start of the project, there are going to generally be expenses you didn’t think of, or materials you wind up spending more for, that can add up to sharply higher than what you initially set out to pay. Be conscious of change orders, and be sure you understand the contractor’s plans, finishes and terms prior to signing a contract.
Pros And Cons of Buying An Existing Home
Pros
Move in faster: Purchasing a previously built home means you can place a move-in date on your schedule much earlier in comparison to having one constructed from square one.
Negotiating power: Finding an existing home, you might be able to leverage the market to get a better price. For instance, if a home you want to purchase has been on the market for some time, the seller could be inclined to come down on price, or if a similar home in the area is at a lower price, you could use that to warrant a lower offer.
More location choices: If you’re set on living in a particular area, it might be easier to purchase a home there than to locate land to build on.
Renovating as time goes on: You can make individual improvements to an existing home gradually, as your budget and schedule permits, instead of having to focus all your resources on one comprehensive project.
Cons
Competition: Subject to where you’re searching, you could face fierce competition for homes available in the area. In a heated seller’s market, buying could feel like being at an auction as others jack up the price.
Outdated appliances and systems: Whereas it’s a new to you house, it’s by definition been used. Subject to the age of the house, you might be required to pay for repairs sooner than you anticipated. Your insurance rates are going to likely be higher than what you would pay to insure a new home, too.
Compromises: The chances of locating your perfect dream home are slim, so contemplate where you are willing to compromise. Can you live with one less bathroom or a sunroom if you find a home within your budget?
No contractor warranty: Newly constructed homes usually come with a contractor’s warranty that offers some protection from major issues. With an existing home, particularly when it’s older, you probably won’t know who completed the build and are not going to receive any guarantees for components, labor or craftsmanship.
Should You Build or Purchase a House?
As you think about whether to build or purchase a home is right for you, it’s important to realize that both processes have their own aspects of costs and potential headaches. The outcome, though, should feel worth every penny.
MK Design & Build In Phoenix, Arizona
MK Design & Build, located in Mesa, Arizona, specializes in residential construction, providing clients with state-of-the-art technology combined with cost-effective building methods. MK offers a variety of styles and designs for you to use as a starting point in your home building journey. With an extensive library of existing plans to choose from, we’ve organized them into 4 Series to facilitate the shopping experience: Classic, Vintage, Contemporary and Craftsman. Contact MK Design and Build right here!
