Cost Of Building A House Vs Buying

Cost Of Building A Home

Here are the typical costs of building a home, with an average price of $150 per square foot.

• Cost to build a 1,400 sq ft home: $210,000
• Cost to build a 1,500 sq ft home: $225,000
• Cost to build a 1,600 sq ft home: $240,000
• Cost to build a 1,700 sq ft home: $255,000
• Cost to build a 1,800 sq ft home: $270,000
• Cost to build a 1,900 sq ft home: $285,000
• Cost to build a 2,000 sq ft home: $300,000
• Cost to build a 2,100 sq ft home: $315,000
• Cost to build a 2,200 sq ft home: $330,000
• Cost to build a 2,300 sq ft home: $345,000
• Cost to build a 2,400 sq ft home: $360,000

How Much Does It Cost To Build A House?

The average cost to build a house yourself is $206,132, according to LandCentury.

• Lot Clearing & Grading: $2,695
• Hooking Up Utilities: $32,000
• Power: $15,000
• City Water: $10,000
• Well & Septic: $7,000
• Foundation: $8,447
• Framing: $3,000
• Exterior Finishes: $50,000
• Electrical, HVAC & Plumbing: $40,000
• Interior Finishing: $80,000

Advantages Of Building A House

Being able to customize every feature in your home’s interior and exterior is the number one reason why many choose to build a home from scratch. Getting exactly what you want is something easier obtained when building rather than buying. In the buying process, you could end up shopping for months without finding a home that meets your every need.

Better energy efficiency is another benefit of building a home. You can build the home that meets new energy codes and standards for ventilation, heating and cooling. Building an energy-efficient home will certainly save you money in the long run.

Advantages Of Buying A House

The two biggest benefits of buying a house are pretty obvious. One is the convenience factor. After getting pre-approved by a lender, you can simply shop around, choose a home and make an offer as soon as you’d like. A real estate agent can help you expedite the home buying process by finding properties that meet your needs, plus assisting with negotiations and paperwork. If all goes according to plan, you may be able to close on the home and move in a month or so later.

In most cases the cost is less when buying a home instead of building one. When you have found a prospective home, use a mortgage calculator to estimate total costs. Prices for most existing homes are still more affordable than choosing to build a house from scratch.

Buying A House Cost Factors

Always account for these five additional costs associated with buying a home:

1. Closing Costs
2. Property Taxes
3. Insurance
4. Private Mortgage Insurance
5. HOA Fees

The average closing costs will include an appraisal fee, document preparation and title insurance, among several other charges. You can expect closing costs to account for up to 5% of the purchase price. Real estate agents will generally split a 6% commission on the home, as well. Property tax rates will vary based on property value, location and state tax rates.

Homeowner’s insurance rates will vary, much like property tax rates. According to ValuePenguin, the average annual cost is $1,083 in 2021. If you happen to buy your new home with a down payment of less than 20%, you will pay PMI on your mortgage until the equity reaches that number total. Always ask about HOA fees before purchasing a property.