With the outbreak of the coronavirus pandemic, no one was exactly sure how the housing market would respond. Now more than a year after the world completely changed, we’ve seen an incredibly competitive real estate market in locations across the country.
With historically low interest rates, record prices, and low inventory, buyers were getting into bidding wars trying to lock down the perfect home. The competitive nature of the market has made others consider whether building a house vs. buying is a better option.
What’s the difference between buying an existing home and building your own?
Let’s take a look at what you should know.
Cost of Building a House Vs. Buying
When comparing the cost of building a house vs buying a house, it’s typically cheaper to buy a home that already exists. The median sales price of an existing single-family home in 2020 was $300,200. The median sales price of new construction homes was $372,400.
When you build your own home, you also have to buy the land you are building on as well.
Building a House Vs. Buying: How Long It Takes
You won’t build a house overnight. On average, to complete construction on a single-family home it usually takes nearly seven months. This doesn’t even include the amount of time that it takes to authorize new construction, which is about a month on average.
When you buy a house, on the other hand, the process can begin and end much more quickly. Once you get preapproved for a mortgage you can begin shopping around right away, and once you’ve made an offer the average time to close is 51 days.
Convenience Vs. Customization
Another reason why someone might find that it is a better option for them to buy an existing home is because it is, overall, more convenient. If there is a specific neighborhood where you want to live, such as a place that is near to friends, work, school, or family, an existing home might be the easiest option.
When you purchase a home, there is also a higher likelihood that it will already have mature landscaping. This means you don’t have to deal with worrying about waiting for the landscape to grow over time.
An existing home is usually the best bet if you want to be close to town. This is because there is a good chance that land close to town will already have been developed.
On the other hand, what you get in the form of convenience when it comes to existing homes you lose in customization. When you build your own home, you can make it whatever you want it to be (within budget constraints, of course.)
When you buy an existing home, you might have to put up with a floor plan or other issues that you wish were a bit different. Unless you want to do a big remodel, you are also stuck with some of the design decisions of the builder and previous owners.
Advantages of Building a New Home
When you build your own home, you have to find the perfect piece of land and find an architect or builder you want to work with. You are also tasked with choosing every single element of the new home you are building. While this can be an incredible and creative opportunity, it can also be a bit overwhelming.
Some people choose to streamline this process by joining an existing development. This, however, can limit how many choices you have in the whole matter.
People are sometimes so driven to create the exact type of space that they want, however, that they still choose to build over buying. Building offers other advantages, such as creating a home that is more efficient to help reduce the cost of utility bills and help the environment.
Risks of Building a New Home
Probably the biggest cons of building your own home are how long it takes and how much it costs. There is also a risk that things can come up during the building process that makes it take longer than expected and cost more than expected.
Are you thinking about buying a new home? Check out our team of Granbury realtors.
The Importance of Creating a Schedule and Staying in Touch With Your Builder
If you do choose to build a house, you’ll want to create a schedule and do what you can to stick to it. In order to do this, you will want to create a plan with your builder for keeping on track. You can create a contract that includes time duration for construction to help avoid vague, ever-changing deadlines.
If you live in a different state than where you’re building, make sure that they are keeping you in the loop with pictures and their progress. It’s also important that there is one person that is your main point of contact for the entire process to avoid miscommunication as much as possible.
Looking For a Realtor in Granbury, TX? We Know Granbury
Deciding whether building a house vs buying can be a difficult decision. On the one hand, maybe you have had your dream home in mind for a long time and buying an existing property simply won’t do. On the other hand, you might simply not want to put the time, energy, and money into make every little decision about your home when building it from scratch.
If you choose to buy an existing house in Granbury, Granbury Realty is here to help. We are dedicated to helping you get everything you are looking for in a property.
Is it time for you to start looking into Granbury real estate? If so, contact us today!
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