Is Building a House Cheaper Than Buying?

July 16, 2024

Building a house is becoming a more attractive option than ever, with a limited supply of existing homes and the opportunity to live in the house of your dreams. You might have heard that building a house is only what the wealthiest can afford and everyone else must buy what they can afford. Is it true? What about the opposite? Is building a house cheaper than buying?

Buying a House

Pros

Many consider buying a house as the first option, and it has its attractive points. You can move in practically immediately; you don’t have to wait for the house to be built. Practically everything is already in place, such as mature landscaping and existing kitchen and laundry appliances. If things aren’t exactly the way you want them to be, you can save up over time you may be able to renovate the house to become what you would like it to be.

Other great benefits of buying a house rather than building is that the cost is typically lower, and not only that, but you have more room to negotiate the price. It is possible to get a better deal on the house when you buy it.

Cons

The downsides of buying a house include the following:

• The stress of the competition: With high demand and low supply, buying a home can be stressful.
• Renovation costs: You might have to renovate a lot for a long time, depending on the home’s condition. The cost of repairing and renovating the house might even exceed the cost of building a house.
• Building risks and losses: Your older home might be less energy-efficient than a new one and potentially have hazardous building materials like lead and asbestos.

Building a House

Pros

The benefits of building a house are many. You have the opportunity to build a custom home in your desired location. You won’t have to make any changes to the house when you move in, and maintenance costs should be minimal during the first years in your new home. Plus, your home will have great energy efficiency if you hire the right builder.

You also deal with potentially less competition, although there may still be competition in finding land. With Ameri-Star Homes, we take the stress off of you by scouring your target areas for the best piece of land for you. We also have various lots available already so you don’t have to compete to buy first. 

Cons

• Loans: These involve a little more complex mortgage loan with a construction-to-permanent loan for the land and house.
• Move-in time: It can take as little as three months to build a house, but it is not turn-key ready. Plus, you might run into delays. 
• Upfront work: With an existing home, you might think about renovating over a long period of time. With a new construction home, you will need to make decisions for your home upfront. In that way, there is plenty of work to do in the home-buying and construction process.

Is Building a House Cheaper Than Buying?

Each option has its challenges and conditions. In the end, the costs and effort involved can actually even out. If building a house is right for you, Ameri-Star Homes is happy to help you in Maryland.

Let Ameri-Star Homes Build Your New Custom Home!

Ameri-Star Homes was built on the idea that a home is not complete until the homeowner is 100% satisfied. That’s right, completely satisfied homeowners. Whether you want a home built on one of our home sites or on your own land, count on the same high quality from Ameri-Star. We have set out to exceed all your expectations of integrity, affordability, and customer satisfaction. Build lasting memories for years to come with Ameri-Star Homes. 

For more information, contact us today at 410-590-1000 or through our contact page. For more helpful custom home tips, keep in touch with us through Facebook, Twitter, LinkedIn, and Pinterest!