With home prices and interest rates still relatively high, many potential homeowners are trying to figure out a way to get the best deal on their home purchase. And for many, one of the biggest questions related to that process is whether it’s better to build a new house, or buy an existing one.
A recent article from realtor.com explored the pros and cons of whether to build a home or buy an existing property in today’s market, including:
- Cost. When it comes to cost, it will likely cost you more to buy an existing home vs. building a new one in today’s market. According to the article, the latest figures put the median cost of an existing single-family home at $355,000, while building a home will cost an average of $296,652, a savings of more than $58,000.
- Time. While upfront costs are higher for an existing home vs. building, time also needs to be factored into the total costs. According to the article, the average time it takes to build a new home is between 6 and 9 months, which means buyers will need to cover additional living expenses before they can move into their home.
- Features. When you buy an existing home, you’re buying it with its existing features, and if it has things you consider unnecessary—like a pool or a finished basement—you’re paying a premium for things you don’t want or need and drive up the price. With a new build, you can customize the home with the exact features and finishes you want, which gives you more control over the price.
Bottom line? When it comes to buying an existing home vs. building a new one, there’s no “right” or “better” option; only what’s right or better for you—so do your research, crunch the numbers, and pursue the option that makes the most sense for you and your home search.