What is the True Cost of Building a House vs. Buying?
Everyone has a dream home. A place where they can come home at the end of a long, tough day, and hang their hat. But what if that dream home doesn’t yet exist? What if, instead, it’s up to you to build it? Is it worth it, or could you save more simply by buying? If you’re in the market for a new home and can’t decide between building and buying, read on as we break down the cost of building vs. buying a home.
How Much Does It Cost to Build a House?
There’s no way around it, building your own home can be an expensive endeavor. According to Home Advisor, the average price per square foot ranges between $100 and $400. When you take into consideration that the average home is 2,687 square feet, the cost to build a house can add up fast.
But the size of your home is only the start of the costs.
There are so many other factors would-be builders should consider, such as building materials. Take a glance at the room around you. Every window, door, wall, ceiling, and the floor has small, individual layers. From window and door frames to support beams and insulation, the cost of building materials alone is enough to deter most people from building a home.
Of course, you’ll need someone to build your dream home, too. It’s necessary to hire contractors and builders, as well as buy permits. With that said, building a home does have some key advantages. Though the upfront cost is higher than that of buying a home, building a home means owners don’t need to worry about repairs. This alone can save quite a bit of cash.
Building a home allows soon-to-be owners to customize their dream home with green appliances. From solar panels to heat-reflective roofing to Energy Star windows, green appliances will often save homeowners more money in the long run.
How Much Does It Cost to Buy a House?
The home buying process is notoriously long and arduous, but is it more cost-effective than building a home? It depends. Once you find a home you love and decide to settle down, you’ll need to pay closing costs. These fees often add up to between 2% and 5% of a home’s total value.
Buying a home comes with fewer upfront costs, sure, and can be far more convenient. But most homes need at least some tender loving care, meaning that you may need to spend thousands of dollars to get your brand new home up to snuff or to complete that kitchen remodel you’re dreaming of.
With that said, certain firms, like Project Homes Sydney, can assist with these fees or even help you reduce their overall costs. So while you may look at that beat-up old roof and feel your stomach drop, the right company can still help you save. And that’s not all — the cost of homeownership doesn’t end once you’ve reached a deal.
Monthly maintenance, including utilities, lawn care, and homeowners association fees, cost an average of $1,204. In conjunction with other monthly bills, home ownership can get quite expensive, quite fast.
Cost of Building a House vs Buying: Final Thoughts
Since the true cost of building a house vs. buying will depend upon location, the scope of vision, and more, it’s important that you take the time to carefully consider your options. Both can be expensive yet worthwhile endeavors. Whether you want to buy or build, learn more about us and let Sky Five Properties help you find the home of your dreams.