People often spend more time evaluating the cost of an investment home before they commit to the purchase. They may do research online or visit a real estate agent to figure out if the home is the right one for them. Deciding to buy or build a house is typically a huge one. Buyers often consider location, price trends, taxes, and other fees, and they may even investigate whether they should employ custom home builders or buy an existing, pre-built property.
Is it cheaper to build a house or buy an existing one? What’s the cost to build a new home for your zip code today?
Is the decision-making process giving you a headache yet?
While buying or building a house is typically the most significant investment you will make, you should consider how each option aligns with your lifestyle and future goals. After all, you need to know the advantages and disadvantages of buying or building a house.
The Economics Behind Both
When buying a home or hiring custom home builders to do the work for you, you need to consider economic factors. Some of them are outlined below:
When Buying
Once you know the budget or approval set for buying a house, you can start shopping and touring to find that perfect home. While there are many steps between buying a house and moving in, you can close and live in your new home within 45 days. The quick turn time is especially relevant for those who are relocating or on a tight schedule or for people who are looking for something that is already built and move-in ready.
Additionally, buying a pre-owned house means you may be able to live in your ideal location. This process would involve a quicker move-in, but it could also come with unexpected repair costs. And if you’re looking to remodel a used house to make it your own, this would mean paying between $47,000 to $150,000 on average!
Many buyers also underestimate the closing costs involved in the process. These closing costs include:
- Appraisal fees;
- Underwriting and origination fees;
- Credit report fees;
- Title insurance,
- And more—overall costs that add up over time.
In addition, a homebuyer will also need to consider the real estate agent commission, private mortgage insurance, and HOA fees. These are all costs that build up after moving into your home.
When Building
Many homebuyers believe working with custom home builders is out of reach, but it’s a great option. It may seem like the cost to build a house varies wildly, but it’s in the range of $154,185 and $477,534. The final price is dependent on your lot’s location and size, as well as whether or not you need to excavate.
A custom home empowers its tenants to choose every element of your home. Do you want three bedrooms and an open concept kitchen overlooking your backyard? Done. Are you looking for a modern design that’s equipped to entertain guests? No problem.
New builds are also more energy-efficient, have fewer health concerns, and can be built with sustainable materials for the environment.
However, you must remember it takes 6.5 months to build a custom house. You will also need to consider the significant expenses that come with building a house besides the mortgage payment, such as:
- The foundation.
- The framing.
- The finishes.
- The driveway.
Why Not Consider Working with Custom Home Builders?
Your decision on a custom-built home or pre-build house will depend on your priorities. Unless you have unlimited funds, it’s possible to embark on a daunting house search and find an existing place that’s a perfect fit or build a new home that has exactly what you are looking for. The first step is to determine your budget, create a list of needs and wants, and find the ideal location.
But if you’re ready to customize a house according to your specifications, contact Duke Homes today! We’re a team of custom home builders in Greenwood, Indiana that creates one-of-a-kind environments that our clients are proud to call home. Whether building a new home or enhancing an existing one, your complete satisfaction is our highest priority. Make your appointment with us today!
