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Buy Land and Build or Buy a House?

By
Real Estate Broker/Owner with Vision Realty

Occasionally I have a buyer that comes along wondering if they should buy land and build a custom house or if they should already buy a house is already built? There are pros and cons to both and it's helpful to know those advantages or disadvantages and what you could be up against if you choose one versus the other.Let's get straight to it and talk about the difference between buying land to build in buying a house.

Cost.

It's generally cheaper to buy land and build your own than buying a house it's already built. But that's not always the case. If you buy an existing home you'll be looking at around the median home value which depending on where you live could be anywhere from hundred and $50,000-$950,000. It also depends on how expensive land is where you want to build. Overall, unless land is a rare commodity in your city or community, it is generally less expensive to buy land and build your own. Related: Hidden costs when buying land

Are you just not finding what you want?

Often times this is the main reason the people decide to build. They simply can't find exactly what they want in an existing home. It could be that the kitchen is too small, they don't have enough space, they don't like the view, the houses are right on top of each other, or some other detail of the houses they are viewing are just not exactly what they want. I would say, if you are at that stage, look into land and building costs. You might be surprised as to where you could build and get exactly what you want.

Another advantage of building is that you pay for what you want, rather than unnecessary items, materials and features in an existing house that you may not like. You can cut corners in one place and put more money in another.

Existing homes, especially older homes will have more maintenance. The older the home, the more repair and maintenance will be needed. Home inspection should reveal a lot of the initial issues that you'll need to take care of, or request the seller to take care of, but, by buying new, you know that the appliances will be new, materials will be new and finishes, construction, and features will all be brand-new.

There are a lot of details to building. If you choose to build your own home understand that there will be more details than you ever thought possible in building a house. It will come down to the baseboard color, cut and design, paint colors, doorknobs, light fixtures, light switch and plug-in covers, windows, door frames, window coverings, heating and air-conditioning elements, backslashes, counters, and the list goes on and on. You won't believe how many little details there are to building a house until you have to do it and, no matter what you set your budget at, chances are you will go over it.

And then there's landscaping. You get to start fresh or you HAVE to start fresh. It's your perspective.An existing home will have landscaping probably already done or, you could have landscaping that you have to cleanup or fix. In a new home, you could pay more to have the landscaping done and then start fresh and design your entire landscaping the way you want, or, you have to do it yourself. There really are pros and cons when it comes to landscaping and you have to find out what you want and how much you want to pay for it or deal with it yourself.

It really comes down to convenience vs. customization.

If you can find a home that meets all or most of your needs, that might be the better way to go. If you can't find something and you know you won't be happy with what's out there or the current prices are just too scary, it may be time to build. However, it's super important to know as much as you can, research builders and have a great agent on your side to help facilitate the whole thing and make you feel as comfortable and confident as possible. 

Additional resources: How buying land is different from buying a house

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columbus, lewis center and gahanna real estate

Columbus Ohio real estate - Vision RealtyAs a certified Realtor® for the top-rated Columbus Realty Firm - Vision Realty, with 32 years of dedicated real estate experience, I can help buyers, sellers, investors, short sale sellers and more find, sell or invest in the right property, at the right price, at the right time. Contact me anytime for updates and information on the Columbus OH Real Estate market.

 

Donald Payne - Vision Realty, Inc.
4608 North High Street

Columbus, OH 43214

Toll-free: (866) 510-2223

Cell: (614) 323-4348
DonaldPayne@VisionRealty.com
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