Building or Buying: Which is the Best Choice for You?
Building or buying your home is a big decision. Both options have their benefits, and it’s all about choosing the right one for you and your family. Let’s compare them with insights from one of our mortgage experts.
Ben Sullivan, Vice President/Retail Banking Manager at Western State Bank, was previously a construction loan officer and continues to support North Dakota customers with construction loans today. He's worked in the finance industry for over 20 years.
The Case for Buying Your Home
Benefits of buying your home include:
- Ready for move-in right away
- Generally less expensive than building
- Easier process
Ready for move-in right away
Buying a new home can be just as exciting as building your own. One benefit of buying over building is how quickly you can move in. If you’re pressed for time or just need a home that’s a better fit for you, this can be a huge advantage.
“I’ve run into situations where buying just makes sense for my client,” Ben says. “Maybe they need space for a new baby, or they’re moving for their career. When you need a new home, you need a new home. Time is an important consideration.”
Generally less expensive than building
According to the National Association of Homebuilders and the U.S. Census Bureau, you could save almost $35,000 buying a home versus building one.*
It’s important to do your research and compare prices of homes in your area to construction costs by local contractors—but typically, buying a house will be less expensive than building.
Easier process
Lastly, buying a home tends to be an easier process. You don’t need to hire contractors, architects, or any of the crew needed to build a house.
“I’ve helped so many people find a home that’s perfect for their family,” Ben says. “The right fit for you might not be custom-built. There are homes on the market right now that may be exactly what you’re looking for.”
The Case for Building Your Home
Benefits of building your home include:
- Complete customization
- More modern and efficient materials
- Less competition
- Know your home’s history
Complete customization
When you build a home, you decide everything. From the number of bedrooms to the kitchen countertops—you make every call, big and small.
If you’re ready for your dream home, this can be a huge benefit. Instead of making concessions and looking for something you like, every aspect of your home can be built exactly to your specifications.
More modern and efficient materials
New homes have the added benefit of modern materials. That means more energy-efficient windows, walls, and appliances. This can save you money on monthly bills and repairs.
“Upfront costs tend to be more when building a home, but it’s important to consider the long-term savings,” Ben says. “Energy-efficient appliances and materials save on your monthly bills. If you plan to stay in a home for quite a while, small savings here and there really add up.”
Less competition
In the current housing market, building can also lead to less competition. Possible stressors like bidding wars and making offers over the asking price are less common when purchasing a plot of land.
Know your home’s history
When you build a home, you know everything about it. You know who handled the construction, land surveys, and design. There aren’t any surprises from previous owners, unexpected issues, or anxieties about the history of your home.
“Building a home can sound like a lot of work, but you have a team of experts in your corner,” Ben says. “We’ve been through the process hundreds if not thousands of times. It’s routine for us, and we’re happy to lend our experience to help you build the perfect home for your family.”
So, Which is Right for You?
At the end of the day, buying a house could save you some money and hassle, but you may need to make some concessions on the dream house you’ve envisioned.
Building may be more effort and cost, but you’ll end up with everything you want in a home. Plus, Western’s construction loan team will be there to help you through the process.
Still on the fence? That’s okay! There’s a lot to consider when choosing the path to your next home. Our mortgage team would be happy to sit down, listen to your situation, and offer some helpful advice to help you make your next move.
