For those just making the foray into the world of home ownership, there is a major decision that must first be made: should you purchase your home pre-built or handle construction yourself? While neither option is technically right nor wrong, certain people will have a preference based on their needs, wants, and overall lifestyle. Learn the difference between these two forms of home ownership to see which may be right for you.
How Expensive is it to Purchase a Home?
As of the latest data, it costs just over $420,000 to purchase a home in the United States on average, assuming that the purchase is not being made in a high-cost state. In California, for perspective, the average home price is above $700,000 which is substantially higher. Given this higher price, the average down payment a person would be expected to come up with would be closer to $100,000 upfront.
How Expensive is it to Build a Home?
On the other side of things, the average price for building a home in the United States tends to fall between $110,000 and $400,000, with the higher end being the more likely option. Again, in a higher-cost area, getting your home constructed by London home builder in Ontario could cost closer to $800,000 and even over $1,000,000 depending on the amount of customization that goes into the build.
Benefits of Building a House
For those tossing around the idea of building a house by themselves, there are a number of benefits that come from choosing this option:
The ability to customize the home
One major reason a person may choose to build their home as opposed to purchasing one pre-built is due to the fact that they can customize the home. This means designing how the walls will look, where the windows go, and everything in between. For some people, this is the best option to have if they cannot find a home that meets their specific needs.
Less competition than placing a bid on a home
Despite higher prices, there is a large amount of competition in the housing market currently. For those who can’t make enough of a down payment to outplay other bids, choosing to build a home may be a better alternative.
Fewer maintenance tasks in the near future
By building a home, you know for a fact that all the appliances inside are brand new, as well as the home itself. This means that there aren’t a lot of maintenance items that will come up which can save you thousands of dollars. On the other side of things, buying a prebuilt home may result in getting a home that comes with a large number of problems.
Likely lower energy costs
Newer appliances mean more efficient use of energy in your home, resulting in lower costs associated with that use. This can help you save money on your utility bill which can add up positively over time.
Drawbacks to Building a House
However, for all of the above benefits, there are a few drawbacks that are important to keep in mind before making the decision to begin a building project:
To build a home, you will most likely have a long waiting period before a plot of land opens up and you receive your permits to begin building
When you go to purchase a home, you may be able to negotiate a lower price, but when you choose to build your home the price is set and will not change
As you begin to oversee the construction project for your new home, it’s important to remember that things will be messy and chaotic, which can be quite stressful over time
On the same line of thinking, there is a large amount of stress that can come from building your own home – even if you think you are prepared for this stress, it can quickly become overwhelming
Find your dream home today
While some people may not even consider dealing with the time commitment that comes from building a home from scratch, it could be the dream of another person. Regardless of whether you choose to build your own home or buy one that is already made, take the time to ensure you’re getting the best deal on your home and that it is in a coveted area of town that provides you with a large number of options.
