Building vs Buying a New House in 2024

When deciding between building a new home or buying one, several factors come into play. Some of the most obvious considerations are the overall cost, level of customization, and timelines. Each of these factors influence the overall experience and outcome. Building and buying both offer distinct advantages, but your decision will depend on your specific goals—whether that’s adhering to a specific budget, creating a fully personalized living space, or moving in quickly. This article explores each aspect to help you make an informed choice.

Costs and Expenses to Consider When Building vs. Buying a Home

Naturally, cost is typically a key factor in the decision to build or buy a new home. In this section we’ll discuss the costs and expenses involved in building versus buying a new house.

Preconstruction Costs

It’s imortant to understand that if you’re planning on building a home, there will be expenses involved long before any actual construction begins. Your main preconstruction expenses are going to be in land, house plans, and permits.

Land Survey

An important land related cost to consider is the expense of surveying the property to establish legal property lines and boundaries. This is a necessary step, as it ensures that the land you’re building on is properly mapped and that what you intend to build there adheres to New Hampshire’s state and/or town specific zoning laws and regulations.

A licensed land surveyor will physically confirm the exact dimensions of your lot, visibly mark property corners, verify boundaries, identify wetlands, etc. While this may seem like a small detail, it’s a crucial part of the process that shouldn’t be overlooked when planning your budget. Your general contractor should be able to help give you an idea of what it might cost in your particular situation, the scope of every project is a little different.

Septic Design

If your land doesn’t have access to a municipal sewer system, a septic system and a certified septic design will be required. A licensed professional will need to perform test pits and assess the soil’s drainage capabilities, which is essential for determining the type and size of the septic system your home will need. Your site plans, lot layout and septic design must all be customized based on the specific conditions of your property.

House Plans

Last but not least of the preconstruction expenses is your house plans. This can cost a lot or a little, and depends entirely on your specific wants, needs and level of customization desired. To start with the most common and budget-friendly option, some local architects, such as Artform Designs, offer a book of their own designs for you to choose from that can be purchased and modified to suit your needs as an upgrade. Alternatively, we can work together with a local licensed architect and create a completely custom design from scratch.

While purchasing a pre-built home can provide some form of immediate savings, particularly with preconstruction costs, building a custom home gives you control over finances and budget allocation from the very beginning of the project, from the land to the finishes which can help mitigate these additional initial expenses.

Cost of Upgrades

Many homeowners want to make their new space feel like home immediately, so it’s important to factor in the cost of upgrades and customization. With a custom build, you can select your preferred materials, fixtures, and finishes from the start, often at a more reasonable cost. Since these upgrades are included in the initial construction, the expenses tend to be predictable and easier to manage within your budget.

Another advantage of building a custom home is the control you have over your budget. When buying a pre-built home, you often pay for features that may not align with your needs. If renovations are required, those costs can quickly add up. In a custom build, every decision—from the layout to the materials—is yours, allowing you to invest in the areas that matter most to you, whether that’s a gourmet kitchen, energy-efficient systems, or luxury finishes.

Managing Both a Construction Loan and Mortgage

Timeline and Moving In

Timing and move-in dates are important considerations as well. Buying a home is obviously the faster option, with the possibility of moving in immediately without dealing with temporary living arrangements or overlapping housing expenses. Building a custom home requires a larger time commitment for things like land selection, design, permits, and actual construction.

While it may require more patience, the reward of a home tailored to your vision could make it worthwhile.

Levels of Customization

All else aside, the most notable difference between building and buying a home lies in level customization possible. Building a custom home allows you to design your living space to meet your exact needs and lifestyle preferences, from the layout, to the smallest finishes.

While it’s easy and inexpensive to repaint, change carpets, or update trim in an existing home, more significant upgrades—like installing a metal roof or energy-efficient windows—can be costly and disruptive. Building a custom home allows you to choose major exterior features like roofing, siding, and windows, ensuring your home reflects both your functional needs and aesthetic preferences from the beginning.

If you’re content with minor cosmetic changes, like paint and flooring, buying an existing home may work for you. But if a high level of customization and specific major features are important, building a custom home may be the better option.

Buying Land to Build On

One key consideration when building a home is the freedom to choose your own land. This allows you to find the perfect location—whether that means a lot with stunning views, more privacy, or proximity to schools and amenities. When buying an existing home, your options are limited to homes in developed areas, which may not meet your needs for land size or location. Building on your own lot gives you control over both the house and the setting.

If having control over the location and design matters most, building may be the better option. However, if you prefer the convenience of a site that’s already prepared and are less concerned with full customization, buying an existing home may offer a simpler, more predictable process.

Deciding Between Building vs. Buying

The decision to build or buy comes down to personal priorities. Building a home allows you to customize every detail, from layout to features, while also offering the freedom to choose your land. However, it involves potential challenges, such as excavation costs and managing temporary living arrangements. Buying an existing home offers the convenience of moving into a ready-made space but limits your ability to customize beyond cosmetic changes.

Ultimately, the right choice depends on your unique wants and needs. If you have any questions about building a custom home, we’re here to help. The first step is just an easy phone call with us.

Click here to Contact Us to explore how we can turn your dream home into reality.