If you’ve been looking to buy a home, you might have noticed that inventory of used homes is still really low. There just aren’t that many homes available on the market these days. When a previously lived in home comes on the market, it gets snapped up quickly. If you’re in the market to purchase home you’ll need to be pre-qualified and ready to jump.
Many homeowners, not finding what they want where they want it, are opting to build new homes instead of search for existing homes. Certainly, building a new home comes at a premium, but down the line it could very well save you money.
Building isn’t for everyone, but for many it is the way to go. You’re in the driver seat when you build a custom home. You get to choose the design, the location, and then you get to customize it to fit the way you live. Does it cost more to build a new home compared to purchasing an existing home? Probably, but in the long run you’ll have exactly what you want and you can incorporate features that will save you money as time goes on.
Does it Cost More to Build a New Home or Buy an Existing Home?
It’s still a seller’s market out there. Though there is some sign of it getting better, most homes still sell very quickly, often getting bid up due to multiple offers. The median price of a new home is $252k and going up.
The average cost of building a new home, according to Homeadvisor.com is $286,277, that’s a difference of $34,277. That’s a lot of money, but with that you get a location that you choose, and customization that just doesn’t come with an existing home.
Location
It’s all about location when buying or building a new home. Of course, you’ve always got the option to move a home you love to a location you prefer, but there goes any savings and then some (the cost to move a house even a few miles can be upwards of $200k!). When you build a new home, you get to choose the location. If you want southern exposure you can have it. If you want to have a wooded backyard, you can do that too. You have many more options when building new.
Maintenance
Existing homes come with existing maintenance issues. There’s simply no way around it. Even a new home existing home is going to have appliances that need repairing or replacing. A ten year old home could soon be in need of a new furnace, new dishwasher, new fridge and the list goes on. When building a custom home you choose the appliances you want to use. Not only will they be new, but they will come with a warranty.
Energy Efficiency
Homes built today are more energy efficient than ever before. The mechanics and appliances you choose can be considerably more energy efficient than those manufactured just a few years ago. Windows and doors have also become much more energy efficient recently. Most materials that go into building a new home have been improved drastically in the last few years. Siding, windows, doors, roofing materials and even the concrete that becomes your foundation, has been improved to be more energy efficient and eco friendly.
Safety
Today’s new homes come with all kinds of safety features not even imagined in older homes. From sprinkler systems to co2 monitoring and security cameras, today’s newly constructed homes are safe havens compared to older homes.
Smart Features
In addition to new safety features, today’s newly constructed homes have smart features built in. You won’t have to retrofit your home for these smart features like doorbells with cameras on them or all around sound system controlled by your smart phone, because they can be built right in.
Warranty
Newly built homes come with a warranty from the builder. If anything goes wrong in a certain amount of time (it varies from builder to builder) you don’t have to worry about it. Existing homes don’t come with that kind of guarantee.