Which Is Cheaper? To Build Or To Buy
What’s the best value when you’re looking to buy a new home? Is it cheaper to build or buy a new home? Changes in the housing market have made it confusing for many homebuyers. Bosgraaf Homes wants you to understand your options, so let’s explore the pros and cons.
Homebuyers are the losers in the bidding war
The high demand for buying a new home fueled soaring price increases. Even with a higher price, offers must often be above the listing price to be considered by the seller. Will your desperation cause you to buy a home that isn’t worth the price? Will it even appraise for that offer? When the market settles back to something closer to normal, will your home still be valued at the price you paid? These are important considerations when you’re deciding whether it’s cheaper to build or buy a new home.
Maintenance adds to your total cost of ownership
In spite of the higher cost of buying a new home, you still need to understand that the purchase price is just the start. Do you need to do renovations or repairs to make it the home you really want? Have you gotten remodeling estimates? The National Association of Realtors posted estimates of $7,000 to replace an HVAC system, which typically lasts about 15 years. A new roof could cost anywhere from $8,500 and $14,300 for 2,000 to 2,200 square feet. The cost of replacing a typical double-hung vinyl window runs between $400 and $650 per window. Wood windows are considerably higher. Do you want to swap out those old kitchen cabinets? Plan to spend $3,200 to $8,500, on average, for the purchase and installation of in-stock cabinets, and twice that for custom cabinets.
Don’t become a disappointed homebuyer who doesn’t have the budget to makeover their home after buying it. Yes. It happens more frequently than you might expect. And this choice leaves homeowners experiencing buyer’s remorse as they have to live with less of a home than they thought they would have.
New construction homes are smarter
Are you a techie? Do you plan to use smart home automation, high-speed internet, and all the other state-of-the-art goodies that make life easier?
Check to make sure that the home you want to buy can accommodate your needs. Will the wiring need to be updated? Is the home plug-and-play ready for your devices, or will you need someone to update it?
Homes built today are designed for smart home automation. They have CAT 5 or (even better) CAT 6 cables that are far better for handling your technology than the cables used before. Bosgraaf Homes builds high-performance homes in the West Michigan area. Our new homes include Kichler energy-efficient light fixtures that use ⅔ less energy than conventional lighting, Lennox programmable thermostat to regulate moisture levels, and Bryant HVAC high-efficiency furnace and central air to provide the best heating and cooling throughout your home.
Are you paying more and getting less?
As you’re browsing new homes for sale in the West Michigan areas, ask yourself what you’re actually paying for. The cost to build a resale home doesn’t matter. The fact that lumber prices have gone up is irrelevant with a home that’s been standing for years. Nor do they have the added expense of paying current prices for new appliances, materials, and systems. You’re just paying more, not getting more.
When you buy a new home, you’re getting all-new construction. Your new home is built with the latest technology, which includes energy-efficient materials and systems, and healthy home features, like whole-home air filtration. You’re getting a home that’s covered by a builder’s warranty, so you don’t have the worry of paying the price for repairs and replacement.
Compare the prices of what has been built into the home you’re considering. Is it priced according to what you’re getting?
The price difference between building and buying
The U.S. Census Bureau assigned a median sales price of $450,600 for an existing home in the U.S. in April 2022. The National Association of Realtors estimates it costs $332,524 to build a new home of 2,594 square feet (not including the land), which reflects $35,872 in the higher costs of materials like lumber, which rose in price by 250%.
The prices vary depending on where you’re looking, as well as the size, style, and features of the home.
The whole concept of value is your level of satisfaction between what you got and what you paid for. Remember this when deciding whether to buy a resale or new home.
Bosgraaf Homes invites you to see the communities of custom single-family homes we’re building in the Grand Rapids and Lakeshore areas of West Michigan. We make it fun and easy to buy a new construction home in a desirable location, with all the features you want, and maybe some you didn’t even know you could have!