What’s the best value when you’re looking to buy a new home right now? Is it cheaper to build or buy a new house? Changes in the housing market have made it confusing for many homebuyers. Value Build 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 that listing price to be in consideration 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 house.
Maintenance adds to your total cost of ownership.
In spite of the higher price to buy a new home now, 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 to replace a typical double-hung vinyl window runs between $400 and $650 each. 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 purchase and installation of in-stock cabinets, and twice that for custom cabinets.
Don’t be the homebuyer who doesn’t have the budget to renovate or maintain their home. It happens more frequently than you might expect. And it leaves homeowners experiencing buyer’s remorse as they have to live with less home than they thought they would have.
Are you paying more and getting less?
As you’re browsing new homes for sale in North Carolina or South Carolina, ask yourself what you’re actually paying for. The cost to buy 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. A home that is built with the latest technology, which includes energy-efficient materials and systems. A home that’s covered by a builder 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 build and buy
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 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 in what you get for what you paid. Remember that when you’re deciding whether to buy a resale or a new home.
Value Build Homes invites you to build the custom home of your dreams in North or South Carolina. We make it fun and easy to build a new construction home in a desirable location, with all the features you wanted, and maybe some you didn’t even know you could have!