This is a guest post by Tarah Mills, a freelance writer on the benefits of building your own house instead of buying one. Enjoy.
People often exhibit surprise at the knowledge that building a home can cost less than buying an existing one. It also ensures that you move into your genuine dream home.
Why Build a Home
Besides the customizations available such as the stonework for fireplaces or layout you want, you also obtain a brand-new home. That means you get a warranty on its components and its construction. You typically also install all new appliances which also come with warranties. That ensures that any issues with either components or building processes – any type of structural defect. You also get about a decade at a minimum before you need to replace anything, from the HVAC to the roof which is likely to last 15 to 20 using modern materials.
When Building New Will Cost You More
It will not always cost you less. It will not always cost you more. A few items affect whether you will save money.
The median cost a newly built home in the US is $301,400, says the National Association of Home Builders, but an existing home costs a median of $212,300. That means many homes cost more and many cost less. The following items create this disparity.
- People who build new homes typically build larger, luxury homes.
- Using builders rather than self-construction raises the prices because builders expect to make a profit.
- The requirements of your local building codes also affect the costs. New homes in some locations require a more strict energy code, elevation to mitigate flood damage or protections against wind damage.
- Choosing to build a green home will cost more. Environmentally friendly homes cost more to build but save you money in the long run.
- You have to buy the land first. It can cost a lot, especially if you want to move to a high demand area.
- The materials you choose and any discounts you obtain affect the cost. The costliest include window coverings, landscaping, adding electric and cable outlets, flooring, paint, etc.
- The driveway, walkways and fences, especially a full height privacy fence will add to the cost.
How You Save Money Building New
As long as you keep the above expenses in check, you can keep costs low. You also escape the need to bring up to code an obsolete home. You might find just the home you desire in the perfect neighborhood, but it may not be up to code. This happens when you purchase a historic home. You will not have to spend money on repairing and remodeling an existing home on top of the purchase cost.
Although it sounds strange at first, you can save money on health care by building a new home. Older homes can contain toxic materials like asbestos or lead paint. These concerns you avoid can eliminate or reduce health problems. Similarly, your new HVAC system can reduce problems and newly built homes are more likely to include HEPA systems. This results in improved air quality which can help alleviate allergy issues and improve breathing problems for those with bronchial issues.
The Wrap Up
Whether you save money or spend additional money on building a house remains up to you. Shopping around for materials can help shave the price down. So can hiring a builder that already employees their own plumbing and electrical crews.
Finding cheap land lets you save a bundle. You never have to worry about equipment breakdowns or building defects since those get covered under warranties.
Yes, you can probably buy an existing home cheaply. You could also build one cheaply. The difference in the results boils down to getting the exact home you desire versus settling for a home you can live with until you find another or remodel it. You can even save money by remodeling your home into your dream home, rather than buying a new home. There are a lot of contractors now, like Avenue B, a popular provider for house remodeling in Austin,Texas, that will even let you compare what you want versus trying to afford finding it on the market on your own.
In the end, you can shop around for land, builders and materials. If you buy an existing home though, you get stuck with the asking price. Not only do you have no room to save, but you might end up having to spend money to update it after purchase.
