Building a Custom Home is the Smart Financial Decision
Many people find themselves caught between renting or buying an existing home and often fail to consider the third option: building their own home.
When making housing decisions, many people find themselves caught between renting or buying an existing home. Faced with rent increases or mediocre builds, they often fail to consider the third option: building their own home.
Building a home is often a great financial decision, which might sound contrary to what most of us think. Read on to find out how building the home you want can save you money, time and energy.
By the numbers
In 2019 the average cost of building a single family house was $296,652, according to the National Association of Home Builders. In the same year, the average median price to buy an existing single family house was $271,900, according to the National Association of Realtors.
By these numbers, buying an existing home would save you around $25,000; however, analyzing this data is only the first step in determining the final cost between buying and building a home. Here’s what the numbers won’t tell you:
Save money on remodeling
Many new home buyers settle for buying a less-than-perfect home, which can lead to costly renovations and remodeling. According to a study by the National Association of Home Builders, the typical new home buyer spends an additional $12,023 on new appliances, property adjustments and different furnishings in the first year. But remodeling can often be a lifelong project to adjust your new home to fit your preferences—taking up valuable time and money.
When you build your own home, you can side-step these issues by designing it to fit your specific needs from the start. You won’t have to compromise on a cramped kitchen or worry about a lack of office space. You’ll be able to personalize every detail of home, from the number of bathrooms to the color of the walls feel of your common spaces.
Designing your home also helps you to avoid the unnecessary extras that come with existing properties. Newer homes might include a wine cellar, lower level bar, swimming pool and a home theater. While these all sound nice, they dramatically increase the cost of a home. Building your own home allows you to choose the extras you really want and avoid those you might never use.
Avoid hidden costs on unexpected repairs
Many home buyers face costly repairs on their new residence. Existing homes will need roofing replacements, new heating and cooling systems and appliances much sooner than new homes. These big-ticket items can cause major headaches.
Rather than worrying about how long your roof will last, you’ll be able to enjoy the new features of your custom-built home. Even if you experience a difficulty with your new home, your space could be covered through a warranty.
Enjoy a healthier home space
A new home comes with health benefits. Issues like mold, lead paint and asbestos can plague older homes and cause health problems for those that live in them. These issues aren’t always apparent during a home inspection, and the costs to fix them can pile up quickly.
Investing in a new home provides your family with a safer and healthier living environment. Even if it’s not a health issue, you can avoid minor annoyances, like dirty baseboards or lingering odors, by constructing a new home.
Cut costs with energy-efficient appliances
New homes also offer the opportunity for energy-saving appliances and structures. Many home builders choose green or Energy Star-rated appliances for their plumbing and lighting needs. Designing your home to be energy efficient could also earn you a $2,000 tax credit.
In addition to reducing your carbon footprint, you’ll accumulate savings on your utilities. The use of heating and air conditioning accounts for more than half of the average household’s yearly energy consumption, according to the Energy Information Association. New homes feature better insulation and could reduce the cost of heating and cooling your home by hundreds of dollars every year.
When designing your new home, you can also plan for future upgrades in home automation technology and solar power capabilities. Building your own home allows you to customize your home for the future and save money in the process.
Skip the home buying process and jump straight into building the home of your dreams. By saving you time, money and energy, your custom home could be the best financial decision you ever make. Get started on creating your customized space today with Atmos.
