Is it Cheaper to Buy or Build a House?: What You Need to Know

One of the biggest decisions that people have to make when they are looking to buy or build a home is whether to buy an existing home or to construct their own. While there are many factors that can come into play when making this decision, cost is usually one of the most important. So, which option is more affordable: buying an existing house, or building your own? Let’s take a look at the pros and cons of each option.

According to the Texas Real Estate Research Center, buying an existing home can be significantly less expensive than building your own in most cases. This is largely due to the fact that it eliminates a lot of the costs associated with constructing a new home, such as hiring an architect or contractor and purchasing materials. Additionally, existing homes often come with amenities and features that you would have to pay extra for if you were to build your own house from scratch.

That being said, there is also the possibility that an existing home may require more work than anticipated and end up costing more in the long run. For instance, if an inspector finds that a house has major structural damage or needs extensive renovations, it can drive up the cost of buying considerably. It’s also important to keep in mind that if you’re buying an existing home, you may not be able to find exactly what you want in terms of layout or design.

On the other hand, Texas is, in fact, an affordable place to build a home. The Texas Real Estate Center notes that the cost of building a new home in Texas is typically around 10-20% lower than the average across the nation, mainly due to its generally low labor costs and ample land availability. Compared to the cost to buy a house today that is $410,600 in the U.S, according to the National Association of home builders and the U.S Census Bureau, Texas is 30% cheaper when it comes to closing costs.

As we mentioned in our previous blog (Is McAllen, Texas a good place to live?: An Overview),McAllen is noteworthy for its economical living expenses compared to other parts of the state and the country. This makes it a great option for those looking to build their own home in Texas, as construction costs are likely to be lower here than in other areas of the state.

If you’re looking to acquire your dream home in the Lone Star State, you may be wondering whether it’s cheaper to buy or build. While the answer isn’t always clear-cut, there are some advantages and disadvantages of both options that you should be aware of before making your decision. Let’s take a look at what these pros and cons are. 

In Texas, the average sale price to purchase a home is around $315k. This price can vary depending on the size and location of the property, as well as some other factors such as the condition of the house, how much down payment is required, and so on. A single family home for sale in McAllen, for example, comes with a median cost of $314,718.

The biggest advantage of buying an existing house is that it eliminates a lot of the costs associated with building a new one, such as hiring architects or contractors and purchasing materials.

Another obvious benefit of buying an existing house is that you don't have to go through the hassle of building your own; it’s already completed and ready for you to move in. Also, because it's already been built, you can get a good idea of how much it will cost before signing on the dotted line—which is not something you can do when building your own home.

However, even though it might seem like buying an existing home would save money in the long run, this isn't always true. In some cases, buying a pre-existing home can actually be more expensive than constructing your own. The reason for this is because many existing homes come with hidden costs and repairs that need to be taken care of before you can move in—costs which may not be included in the price tag. Additionally, if you're looking for something specific with regards to layout and features, those changes may prove costly as well.

While this is often a practical option for buyers in the market, there are some potential drawbacks that make it less attractive than other options. To help you weigh your decision carefully, we’ve put together some of the common disadvantages associated with purchasing an existing home so that you can decide if it’s really the best step to take. Before jumping into making this big commitment, arm yourself with information about how buying an existing home can affect your finances and lifestyle.

1. Can come with hidden repairs and costs 
2. Potential for overpaying for the property
3. Limited customization options compared to building your own home
4. Possibility of experiencing delays with paperwork
5. Can lack certain features or amenities that you desire
6. Could require additional zoning changes or permits that can be costly and time consuming
7. Can be hard to find the perfect property in a crowded market 
8. Could come with a “baggage” of prior homeowner issues or disputes

Overall, when considering whether buying an existing home is right for you, it's important to weigh all of the pros and cons before making a decision. In this case, if you want to live in a most desired or convenient location, it might be worth investing in an existing property, but also harder to find the perfect match. The real estate market can be unpredictable and it's important to stay informed about industry trends, local market conditions and home values in order to make the best decision for your future. Ultimately, what matters most is finding a property that fits both your budget and lifestyle needs.

On the other hand, there are also some advantages to building your own home rather than buying an existing one. For starters, since all of the design decisions are up to you and every square foot, chances are that you won't end up paying extra for features like larger windows or high-end kitchen appliances—things which could increase the total cost if purchased separately from an existing property. You also have more control over materials and construction processes; if there's a particular type of flooring material or paint color that you want but isn't available on ready-made homes, then all you need to do is order it yourself and get it installed!

In Texas, for example, newly constructed homes often come with more advantageous incentives and warranties than existing ones. Plus, you don't have to worry about dealing with any prior homeowner issues or disputes—you can start fresh in a brand-new home that's just the way you like it! Texas mortgage rate is 5.68%, which is lower than the national average.

A new construction home, while more of an investment than a simply purchase, can provide peace of mind in terms of safety and quality construction. You’ll also have access to the latest amenities and features like energy-efficient windows and appliances, which can save you money in the long run.

However, you must know that having a construction loan will delay the process of buying a home. The construction loan period usually lasts around 6 months, so you must make sure that your finances are committed and can support this timeline. Additionally, keep in mind that depending on the complexity of your project, there could be additional delays if extra permits or zoning changes are needed.

Overall, when considering whether building your own home is right for you, it's important to weigh all of the pros and cons before making a decision.

By choosing to build your own house, you can ensure that all of your ideas and expectations are taken into account. Not only will every aspect be customized specifically for you and your family’s needs, but there are numerous other advantages associated with designing and constructing your very own home.

Here are some of the benefits you can expect from building your own home:

1. Full control over design, materials and features
2. Ability to plan and construct a home that fits with your lifestyle
3. No need to compromise on size or amenities
4. Chance to take advantage of modern construction techniques and up-to-date building codes
5. More financial flexibility with the option of obtaining custom loans tailored to fit your budget
6. Increased energy efficiency and reduced utility costs in the long run
7. Higher resale value when it’s time to move on
8. Opportunity to create a home that you can truly call your own
   

Although there are some distinct advantages to building a new house from scratch, it’s important to consider the potential drawbacks as well. These may include:

1. More time consuming and often more costly process
2. Construction delays due to bad weather or unexpected costs and issues
3. Risk of running over budget or exceeding your initial estimates
4. More difficult to obtain certain permits and zoning changes depending on your area
5. Higher upfront costs associated with purchasing land, materials and labor
6. Need to purchase additional insurance policies for protection from unforeseen damages or losses during the building process
7. Difficulty in accurately predicting future value of your home once it’s completed
8. Learning curve associated with construction processes and materials used

As you can see, there are both pros and cons associated with building your own home versus purchasing an existing property. Ultimately, the decision comes down to your individual needs and preferences. Consider all of the factors carefully before making a commitment and remember that it’s always best to consult with experienced professionals

In conclusion, there really isn't a clear winner when it comes down to deciding between buying or building a house; both options carry advantages and disadvantages depending on individual circumstances.

Ultimately though it comes down to personal preference; do what works best for you and your lifestyle! If budget allows then why not explore both options? That way you know exactly what kind of house suits your needs best – no matter how “big” or “small” their scope might be! Either way though rest assured that whatever decision you make will be worth it in the end!

At Brito Construction, we specialize in both move-in ready new construction homes and home construction services in the Rio Grande Valley. So, no matter which option you choose, we've got the perfect solution for you! We are with you every step of the way to make sure that your house building dreams come true. Call us today or visit our website for home prices or a quote for construction projects!