Is Building a New Home Cheaper than Purchasing a New Home?

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People in the market for a new home often question whether to buy an existing house which meets the needs of their family, or to build a house by hiring a home builder such as Inspired Homes.

Which option is better? Depending on your needs and expectations will determine which of the two is best for you and your family. There are certain benefits to both and cons to both as well. Let’s discuss:

Buying a Home Pros and Cons

  • Pros –
    • You can move in immediately
    • You have an idea of any structural demands and can budget for those and/or repair them as needed
    • Less up-front costs
    • Easier to get a mortgage for
  • Cons –
    • You must pay closing and realtor fees when purchasing
    • Most banks require 10-20% of the total home price as a down payment
    • If the style is not your tastes – you need to invest in renovations
    • Depending on the year built will determine how much yearly maintenance fees you acquire

Building a New Home Pros and Cons

  • Pros –
    • You can customize the property to your liking
    • New build typically means less maintenance for 1-5 years
    • Choose the designer and developer who you want to work with
    • Negotiate on pricing and/or save where needed by cutting expenses
    • You set the project budget
  • Cons –
    • Waiting time to move into home
    • Any hidden fees must be paid upon noticing issue
    • Sometimes projects go over budget and completion date

As you can see, there are a lot more pros than cons for building a new home yet there are around the same number of pros and cons on our list for buying a home that’s prebuilt. Use this list as a stepping stone to build your own list. That way you can determine which option is best for you and speak with your bank about the different qualification options for both.

Inspired Homes is a fully licensed and insured contractor. Whether you want to build a new home in Kansas City, conduct a full renovation on an historic house, or upgrade a home to modern expectations, the home builders at Inspired Homes are waiting to build your customized dream!

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About the Author: Eli Pappas