Cost comparison: should you buy or build a house?

When deciding whether to build or buy a house, the cost is a key factor to consider. Here’s a look at the expenses associated with each option.

Upfront costs
Though housing prices vary significantly, an existing home tends to be less expensive than a new one. And since construction takes an average of 10 to 16 months, you’ll also need to consider interim housing expenses.

However, a major perk of building a house is that it can be designed according to your exact specifications. This means you’ll only pay for what you want. In contrast, the price of a resale home might include features you’re not interested in such as a finished basement or pool house.

Ongoing expenses
It might take more time and money to build a home from the ground up, but the end result is a house-made with new materials covered by warranties. This allows you to avoid costly repairs for years to come. Plus, most new builds meet the latest energy efficiency standards, which leads to additional long-term savings.

In contrast, a resale home requires more frequent maintenance and repairs, especially if the roof, plumbing, or HVAC system will need to be replaced soon. You might also have to invest in renovations if the house isn’t up to code or doesn’t meet your needs and style preferences.

To help you make the right decision for your family, consult with a local real estate agent. A knowledgeable professional can provide you with information about the housing market and new development opportunities in your area.