If you want to move to a new house and you are not sure how to approach this, read on to compare buying a house with building your own. With such a big purchase, you will want to look into several factors, the main one being the cost involved.
Buying a New or a Used house
First of all, there’s a big distinction between buying a house that was used and buying one that has been put on the market by the real estate developer. If you buy a used home, it’s very important to correctly assess its condition, and hire an inspector who can tell what kind of repairs will be needed and how soon.
With older houses, the curb value might go up if they are well-maintained, but you also have to be realistic about possible renovations or repairs they involve in the future. Pay special attention to the plumbing system, the electric system, and the structural integrity. If you need to replace all the plumbing in the next years after purchase, it adds up to the price.
Is It Cheaper to Buy a New Home or to Build One?
With real estate, the costs depend a lot on what you want to achieve. If you are focusing on reducing the budget, you have several ways of cutting costs when building a house yourself instead of buying one. At the same time, you have to remember additional costs that come up: higher loan interest rates, building permits, buying and clearing the land, etc.
This being said, statistics show that it’s probably cheaper to build your own home than to buy an existing one. According to the 2020 HomeAdvisor report, buying a home averaged $309,800, whereas building a new one was $302,817 in 2020.
Buying or Building a New Home?
Before you make a decision, we highly recommend prospecting the local market. You will get an idea of the prices of new homes at this moment, see the condition they are in, and what you can get for the budget you have. Talk to contractors to check what costs are estimated for the type of home you want to have, and do a lot of comparisons.
If you need expert advice on building a home, the resources it involves, and what you can achieve within your budget limits, feel free to contact Homestar Building Performance in Sonoma County, CA. Fill in the contact form or call at 707-849-9237, we are happy to support your next big decision!
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