Deciding to purchase a home is a big move, so you never want to depend on home trends. While every home trend comes and goes, it is best to know exactly what you want so that you can make the most out of the amenities available to you as a builder, or homebuyer.
If you are in the market for a new house, you may be wondering, “Is it cheaper to build a house or buy a new home?” The question is multi-dimensional as the comparison of building versus buying houses already on the market is never a simple equation. In fact, the cost of building a house vs. buying a turnkey property may be up to 6-figures different depending on the area, quality of supplies, and move-in deadline.
Frequently Asked Questions: Building vs Buying a House
We created this FAQ list to answer some of the most frequently asked questions about the price of a new home. However, every homebuyer is different, so consider your own personal needs, and then find out more about your options by talking to an experienced real estate professional.
Q: Will My Home Appreciate in Value?
A: If you build a new home, some of the current trends can die out, dating the home, and negating appreciation value. When building a new home, consider passing up trendy styles to maintain the price value of your property. If you purchase a home, research the home sale prices in the area to get an idea of the context of your purchase, and its appreciation potential over time.
Q: What is the Average Cost of a New Home?
A: Today, an existing single-family home costs an estimated $223,000 or $148.00 per square foot (for homes built before 1960). A new home can cost an average of $289,415 – about $66,415 more than the cost of an existing home.
Q: How Can I Save on Costs?
A: If you are purchasing an existing home, older construction materials, appliances, and other outdated items can overtax your energy bill (an estimated $215.00 if built before the year 2000). Save on costs by updating old appliances, and if you are building your dream home, consider reducing energy costs with solar panels and eco-friendly building materials.
There are many factors you will need to consider before purchasing building materials or making an offer on a house for sale. Some other things to keep in mind before you put your roots down as a homeowner include the cost per square foot to build a home versus the cost of a house listed for sale, construction materials, energy costs, general contracting bids, labor costs, time schedules, home maintenance, and value appreciation.
A Final Note on Location
If you want to know, “Is it cheaper to build a house or buy it?” remember that location makes a huge difference when it comes to estimating the cost of building or buying your dream home.
Depending on which area you live in, property values will vary. Taking to a professional with experience in both areas can help you turn your dream house into a reality. Call the offices of Jeff Barchi to discuss your plans for building a new home or buying an existing house on the market. You can ask all of your questions to find out how much you can afford, where to get approval from a lender, and an accurate estimate of the cost of your dream home.