Is It Better To Build Or Buy A House?

Aug 5

The decision between building a new home or buying an existing one is not easy. Many prospective homeowners face this dilemma, wondering which option brings the most value, satisfaction, and long-term benefits.

Building a house means you can create a space tailored exactly to your preferences, but it comes with its own set of challenges and costs. On the other hand, buying an existing home offers convenience and a quicker move-in process. So, is it better to build or buy a house?

This article delves into the key factors you need to consider when deciding between building and buying, from financial aspects to long-term benefits. Understanding the nuances of both options will help you make an informed decision that fits your needs, lifestyle, and budget.

Costs of Buying vs. Building a Home

One of the first questions that come to mind when contemplating building or buying is the cost. For some, buying may seem like the more affordable choice.

The median price for an existing home in the U.S. as of January 2024 was approximately $379,100, while a new home averaged $534,300. The price difference is substantial, but it is not the entire story.

Buying an Existing Home

When you purchase an existing home, the price typically covers the structure, the land, and any renovations or updates the previous owner has made.

Nevertheless, there are additional costs to consider. Many older homes come with their own maintenance issues, and these may require repairs or upgrades to meet modern standards. For instance, older appliances are often less energy-efficient, which means you may face higher utility bills in the future.

If you’re buying an older home, be prepared for potential hidden costs like roof repairs, plumbing updates, or replacing old electrical systems. Renovating an existing home to meet your needs can lead to additional expenses that may push the final cost close to or above the cost of building a new home from scratch.

Building a New Home

Building a new home comes with its own set of costs. The bulk of your expenses will go into purchasing land, construction materials, and labor.

Depending on your location and the size of the home, this can range from $300 to $600 per square foot. Nevertheless, these costs can increase depending on factors such as the design, materials, and whether you choose luxury finishes.

Additionally, building a new home usually requires multiple loans. For example, a construction loan, which typically comes with a higher interest rate, covers the cost of construction. Afterward, you will need a traditional mortgage to finance the completed home.

While these loans help spread the costs, you will need to account for the time it takes to get approval for both and how long the construction process will take before moving in.

Time and Convenience: Buying a Home

One of the most significant advantages of buying an existing home is the convenience. Once you sign the papers and secure financing, you can move in immediately. For those who need a home quickly, this is a huge benefit.

If you are working under a tight timeline, perhaps because of a job relocation or family circumstances, buying an existing home can be the most practical option. It is possible to find a home that meets many of your needs, and some sellers may be open to negotiation on price or offer incentives to close the deal faster.

A major advantage of buying an existing home is saving time. You can move in without waiting for construction to finish. This faster process makes purchasing an existing home appealing to many buyers.

Time and Commitment: Building a Home

Building a custom home requires a significant time investment. The process, from choosing the right land to collaborating with architects, builders, and interior designers, can take six months to over a year, depending on the project’s complexity. For homeowners seeking a truly personalized space, the wait is often worthwhile.

One of the biggest advantages of building is complete control over the design. You can decide on floor plans, finishes, and layouts, selecting everything from kitchen appliances to wall colors according to your preferences.

Although the construction process can be lengthy, the opportunity to customize every detail makes building a home a highly rewarding experience. Be prepared to dedicate time to managing the project, choosing materials, and making key decisions throughout the journey.

Customization: The Power to Personalize

One of the biggest advantages of building a new home is the freedom to customize every detail. The number of bedrooms and bathrooms, as well as the layout of your kitchen and living areas, can be tailored to reflect your unique style and lifestyle.

When building, you collaborate closely with your builder to choose everything, including exterior finishes, flooring, countertops, and appliances. Every element can be tailored to your vision, allowing you to create a space that truly feels like yours.

Buying an existing home offers limited customization. While minor changes are possible, major renovations can be expensive and time-consuming. For homeowners who want full control over design and layout, building a home is the most rewarding choice.

The Back 9 Development Approach to Custom Homes

Back 9 Development knows the desire for a home that meets your exact specifications. We specialize in custom homes that prioritize quality, high performance, and personalized design.

Our team works closely with clients to ensure that every detail is crafted to fit their vision. From the first blueprint to the final touches, we guide you through the entire process to help your dream home become a reality.

Location and Land Selection

The location of your home plays a crucial role in both the cost and value of the property. When building a custom home, the land you purchase can dramatically affect the overall cost.

Urban areas typically come with a higher price tag for land. Meanwhile, rural areas may offer lower land costs but potentially less convenience.

In Kansas City, you may find that some suburban or rural areas bring larger lots at a more affordable price. However, keep in mind that purchasing land also comes with additional expenses, such as grading, utilities, and other site preparations. These expenses can add up quickly, so it is important to factor in the cost of land when determining your total budget.

When buying an existing home, location is often less flexible. You may find that the area you desire has limited availability, and you may have to compromise on the home’s size, style, or features.

That said, many existing homes are located in established neighborhoods. These areas often feature mature trees and well-developed landscaping, which can take years to replicate when building a new home.

Maintenance and Longevity

Maintenance is another important consideration when deciding between building or buying a house.

An older home may require frequent repairs, especially if it has outdated systems, such as plumbing or electrical wiring. While the initial cost of purchasing an existing home may be lower, the ongoing maintenance costs can add up quickly over time.

On the other hand, a new home will be built with modern materials and energy-efficient systems, which should reduce the need for major repairs in the near future. Many new homes come with warranties that cover the major systems, such as HVAC, plumbing, and electrical, for several years. As a result, you will have fewer surprises in terms of repair costs, which can offer peace of mind.

Additionally, new homes tend to have better energy efficiency, thanks to modern insulation, windows, and appliances. If energy savings are a priority for you, building a custom home might be the more cost-effective option in the long run, as you will start with a home that is built with the latest energy-efficient technologies.

Future Value and Long-Term Investment

When considering building vs. buying, it’s also important to think about the long-term value.

Custom homes often hold their value better than older homes because they are built with modern materials, designs, and systems that reflect current buyer preferences. In addition, with energy-efficient features, a newly built home can be more attractive to future buyers looking to reduce their carbon footprint and utility bills.

On the other hand, an older home’s value can fluctuate depending on its age, condition, and location. While the initial investment may be lower, future repairs and renovations could reduce its long-term value.

For a deeper understanding of the real estate market, you can explore our realty services to guide you through your journey, whether you're building or buying a home.