Is It Cheaper To Build or Buy A House?

Posted by Florida Realty Marketplace on Friday, September 18th, 2020 at 8:00am

Is It Cheaper To Build or Buy A HouseTypically when a home buyer is looking, they are looking buying new construction or perhaps buying a resale home. There are benefits to both, but before making a decision, you should learn about the costs involved. Would it be cheaper to build a new home, or should you consider buying one of the resale homes for sale in Kissimmee or other parts of Florida? Let’s take a look at the costs of each so you can make an informed decision.

How Much Does it Cost to Buy A New House?

Most of the time when someone says, "I'm going to build a house," what they mean is that they are buying from a builder.  Usually, a builder or developer has bought some land and developed it by adding utilities.  Then they come in and decide which floor plans they want to build.  They'll plan out amenities and features ahead of time.   When you come to look, you'll have choices, but not as many as if you built from scratch on your own land. 

Buying new will cost you a premium.  New homes in Davenport and elsewhere are in high demand and as such, the home builders don't have to reduce their cost.  In addition, these new homes are typically priced higher than surrounding neighborhoods. The builder will let you make changes, however, every decision you make comes with a price tag, and if you choose all high-end fixtures, you can quickly exceed your budget. However, this is most often the only route a home buyer will have as the cost of a custom new home will typically be much higher than a home from a neighborhood and you'll be able to finance it.  

Of course, new homes are new, so they don't have maintenance issues.   You can move in and enjoy your new home without much, if any, modification.

Want to reduce the cost?  Contact Us About Our New Home Rebate

The Cost of Buying an Existing Home

Because a new home is typically more expensive, many home buyers opt to look at resales.   Having an experienced real estate agent can be a great help with your negotiations.  Both new homes and resales will require inspections and appraisal.   The saving found in buying a resale is usually found in the price per square foot.  Newer homes tend to have a higher price per square foot than their surroundings because they are new and are "more desirable."  However, if you're looking for a deal you could find a suitable resale and use the money you saved to upgrade the home however you want, just like a popular HGTV show. 

The drawback of a resale is its age.  Depending on how old the home is you can expect to come out of pocket to maintain it.   Painting every 7 to 10 years, replacing the roof every 15 to 20 years, replacing appliances, carpet, and decor.  Some of this work can be fun and bring fresh life to an older home.   Depending on what the previous owner did you may or may not have to do all of these things.  All homes will need maintenance at some point.   

A good test is to ask yourself how long do you plan to own the home.  You can then look at the disclosures to see when things were replaced or repaired.   You can google the life expectantcy of many things and decide if you'll even have to do these repairs.   For example, if someone replaced the roof 2 years ago and you only plan to own the home for 10 years, you likely won't have to replace the roof (weather permitting).

One thing that gets missed on resales is yard size and landscape in general.  Older homes are typically built on larger lots and because of their age, they have more mature trees and landscaping.   Contrast this with the pencil-thin trees you get with a new home.   

Let Us Help You Find the Home of Your Dreams

Overall, there are many reasons to buy an existing home, and the cost is one of them. You will save money on the price of the home. These homes also come with unique features and mature landscaping that you simply can’t buy. If you’re ready to begin looking for your next home, the team at Florida Realty Marketplace is here to help. Contact us today to discuss your needs.

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