Is it cheaper to build or buy a new house?
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. New Home Inc. 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 significantly 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. At New Home Inc, our price is our price. No negotiation, no submitting offers way over asking, and no ridiculous due diligence fees!
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 a disappointed homebuyer who doesn’t have the budget to make over 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 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. New Home Inc. builds smart homes in Raleigh and the Raleigh suburbs. Our new homes include a whole home network panel that provides an organized source to house your modem, router, and other smart home components. And we include CAT 6 ethernet data lines throughout the homes to prevent Wi-Fi dead zones and have lighting fast network connections.
Are you paying more and getting less?
As you’re browsing new homes for sale in Raleigh or other 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 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.
New Home Inc. invites you to see the communities of townhomes and single-family homes we’re building in Raleigh and the surrounding Raleigh suburbs of Apex, Fuquay-Varina, Smithfield, Clayton, and Selma. We make it fun and easy to buy 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! Our “Future-Proof” approach incorporates new thinking, including a Smart Door Delivery Center, a whole home air filtration system, pocket office, and even a pet space.Browse NHI’s available homes, take a virtual tour, and then get in touch with us to discover the true value of buying a new home.