does it cost more to build a house or to buy?

Question

i believe that it is easier to just buy a house but my family says we should build. i think it would cost alot more including the apartment for a year, supplies, and contractor and his year. the house is expected to take a FULL year.

Answer 1

No need to speculate, and because there is so much variance within a region, much less across the country, you need to do the research.
First compare apples to apples, ie similar size, age, style, etc of homes. What is the cost per square foot?
In my neighborhood you could get a 3,000 sq foot, 3 year old colonial for $85 per foot. You could go 1 mile down the road to ABC development and build for about $90 per foot. OK, $15,000 for the new. When things slowed down last year, builders were matching new home prices. That ended once they worked through extra inventory.
Considerations.
Existing homes
Upgrades that add value. Landscaping, finished basement, upgraded light fixtures, upgraded deck, original owner chose expensive upgrades like cabinets, designer bath, additional lighting, bay windows, portico, etc. A portico over a front porch adds curb appeal, and your ABC builder might charge 4k for that. So you have to list out all the options. Maybe better quality, ie local custom builder vs mega-builder.
In this market if you are willing to look around, I would have to say an existing home would make more economical sense.
Also if you buy in an ongoing devlopment, you can expect constuction to be going for 1-3 more years, muddy roads, trucks all over, some construction noise, etc. A lot of people forget that fact.
Also if you have to sell in 1-2 years, I would say you would take a loss on your home.
And contractor risk. If you are talking about a custom built home, that takes time, and there is a risk of the job not going as smoothly has you would like.
On a new home you get the layout and options you like, it can be a very good investment. I have know a few people that have built and sold a few years later and done very well.
You can look for a spec home, those are framed out, you can choose some options, but they can be finished a few months.
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Answer 2

I buy and sell a couple of houses each year on speculation. That includes building when profitable. Generally speaking, it is a wash. The cost of a building a new house and landscaping is about the same as buying a comparable existing house. Excepting the occasional good buy on a building lot or house seller in financial trouble.

The advantage of buying a new house is you get what you want and the fixtures, carpet, etc. are new and won't need replacing.

The advantage of buying an existing house is you can move in right away, and the lawn, flowers, etc. are done.

Answer 3

In the long run, it is more costly to purchase a home that is already existing, unless it's a newer home (1-5 years old). You are purchasing a lot of problems when you buy a home that's already been occupied by someone else...they may not have taken care of it properly...you will be inheriting all of the problems!

If you build a house, you are getting a lot of it under warranty. Not to mention, the homeowner's insurance is cheaper on a brand new home. You are starting out with new foundation, new walls, new wiring, etc.

Make sense?

Answer 4

Raw material+Land+engineer and labor costs turns out less than the original price of buying. Heres why:

1).The home-building manufacture built it in the first place..so they'de most likely sell it for a profit.

2).As time progresses and the population increases a house would increase more than its original price.

3).More work usually pays off more in the end, raw materials and building could come at a better bargain in some years than the others, If you build your house at a specific time in the year chances are you could say $5,000-$10,000 USD in the time of the whole construction.

Have fun with your home.

Answer 5

New homes will cost you more than buying an existing home. It all depends on your location of course, but building a new home is usually about creating a status symbol for yourself, not a true need. You are totally right to question the advice your family is giving you here.

Answer 6

It is easier to buy a house. Your question, though, is which costs more. I think it would cost more to build. If you don't want to build because of the cost expenses, tell your family to pay for it. lol

Answer 7

Supply costs are through the roof at the moment...not to mention that if you build, then you're likely trying to get everything "just the way you want it." Instead I'd agree with just buying something already on the market....the housing market is down right now, so it's definitely a buyer's market. Can probably get a good price now if you're a bit patient.

Answer 8

It depends on if you build it yourself or if you have to hire someone to do it for you.
We did it ourselves and saved about $50,000. In Southern Illinois in more populated areas it would have saved us about $100,000. The more you can do yourselves and know what you're doing of course the better off financially you are.
If you know nothing then it maybe cheaper to go ahead and buy one already built.
You've got all of your water, sewer,electric, heating-AC, property, plumbing and all the other little extras besides the actual house already added into the price. There is no guess work.. Anyone I have ever talked to that built a house, spent more than they had planned to in the beginning.
Hope this helps a little.

Answer 9

if you know how to do it yourself it will cost little over 1/2 of the price to build the house then buying one, it should not take more then 5 months to build it.

Answer 10

You can usually build one for less than buying a spec home. However, in this economy so many builders are trying to unload inventory, you should be able to find a bargain. Call a couple of local builders and ask them how much it would cost per sq ft to build what you are looking for in the area desired. Compare that to the cost of the homes you have looked at - Price divided by sq. ft. Good luck in your search for the perfect home for you.