Is Buying Land and Building a House Cheaper?
Is buying land and building a house cheaper? It is an age-old question that every new house buyer thinks about. Well, a brief answer could be that it depends. There are plenty of things to consider when you are building a house. The same is the case with buying one.
In this article, we will decipher the answer you have been searching for.
So, let’s get started!
What Do the Stats Say?
Well, it is a statistical fact that buying a home is usually cheaper than building one. Research by the National Association of Realtors® tells us that the average selling price of homes in the U.S. was $288,900. The median price of constructing a new house is around $295,820, according to the data taken from HomeAdvisor.
It should not dishearten you from building your dream house just yet. Keep in mind that these are median prices. Constructing your house for less money depends on several factors. These could be the type of house you want to build, or where you want your house built, or how big or small you want your house to be, or simply how much you want to modify it.
Types of House-Builds
Overall, there are three basic kinds of house builds that you can choose from when constructing your own home.
These kinds of homes are highly convenient. Manufactured homes are built somewhere else, like at a facility, and then transported to your home’s location. The whole house is stationed on a frame that can be easily picked up and taken to someplace else.
These homes bear a lot of similarities with manufactured homes. Like manufactured homes, modular homes are also built at another place. But, instead of transporting the whole house to the home’s location, these homes are transported in pieces. Another difference between them and manufactured homes is that they are fixed on a permanent foundation and cannot be moved to another place.
Site-built or stick-built houses are the most expensive kinds of builds among the three. Location built houses are those homes that are built on their permanent location.
When you decide to build your own house, you need a location. That means you have to buy land as well. Buying in urban areas will be costlier in rural areas. In rural areas, you can get a good piece of land for a fairly decent amount of cash. Here’s some information on acre of land cost.
If you continue to ask is buying land and building a house cheaper and are worried that buying land will put a burden on you then, you can always take out loans to help you a little. Be wary of personal loans if you don’t think you will be able to pay them in time. Personal loans are not the worst kind of loans, but if you start missing your payments, it can end up like a sinkhole for you.
Whatever kind of house you might want to build, you will have to find a piece of land, pay for it, and get it ready for construction. This groundwork includes clearing obstacles like trees, land, and dunes. You will also have to connect the area with water and sewer systems. And don’t forget about the foundation.
It is important to consider the additional cost that comes with building your own house. These expenditures include landscaping, getting new appliances for your home, getting the place hooked with new utilities like water, electricity, and waste.
Questions you Should Ask Yourself
Before you decide whether you should get yourself into this entire ordeal, you should ask yourself some questions.
- How long am I willing to wait to move in?
- Am I up for the challenge? Am I good at making decisions?
- Do I need everything in my house to be new?
- Can I take care of landscaping the whole place?
Pros and Cons of Building a House
- One of the biggest pros of building your own home is that you can customize your house, in any way you like. For example, you can make your house wheelchair-accessible if you have someone in your family who uses a wheelchair.
- Newly built houses are more up-to-date with the latest codes and government requirements.
- Newly built homes are generally more energy-efficient.
- Since you are the first owner, you will not have to worry about repairs and replacements.
- You will be in control of what kind of materials you want to be used in your house’s construction.
- One of the biggest con in building your own house from scratch is that it takes much longer to move in than just buying a house. It can take around 6-7 months to build a house from the ground up.
- Unforeseen price hikes and inflation might throw a wrench in your plans.
- You can easily get flustered and overwhelmed with so many decisions to make.
- Landscaping can be a nuisance if you don’t have the skill and temperament for it.
- Dealing with the contractor is a pretty hectic chore.
Buying a House
These days buying a house is easier than it ever was. And if the price seems a bit high, think about all the stress you will be able to avoid. Buying a house will keep you away from the stress of finding land, landscaping, dealing with builders, deciding each and everything while keeping the budget in mind.
Some Pros and Cons of buying a house are:
- You can move in way sooner.
- You will not have to do any landscaping.
- You might be able to get an even lower price if you negotiate the price.
- You can make upgrades anytime you want.
- You might have to do with older and used appliances.
- You might have to spend a little extra on repairs and replacements.
- There might be a lot of competition for the house you want to buy.
- Your electrical heating and cooling systems might be outdated and might be less efficient.
So is buying land and building a house cheaper compared to just buying an already built house? How much it costs depends on your demands. It may also depend on the types of land you’re looking into. In the end, you want a reliable team around you to help you in making the right decisions at the right time. Whether it is a realtor or a contractor, make sure that (s)he is a good fit for you and puts you on top of his priority list.
If you are looking for land in the United States where you can build your home, we will help you out. We can also help you sell your land. Call Land Soar at 386-200-5001 for assistance today.