To Build or Buy: That is the Question

"Should I tear down my existing home and build, or buy a new home?"

Depends on your needs and budget.

If you already own a home/lot that is paid off, building is a great option as you can get a construction loan easily to build the home of your dreams or if you love your location stay, tear down, and rebuild!

If you own a home/lot that has a small mortgage on it, you will most likely be able to get a loan to pay off the mortgage and to build new.

If you do not own a lot/home to tear down, you will need purchase a lot first and then build. Your bank can help you identify what loans are best for this (not all banks do construction loans).

What are the major costs in building a new home?

  • approx. 1/3 is the shell of the house (walls, roof, windows, doors)
  • approx. 1/3 is interior finishes like flooring, countertops and cabinets
  • approx. 1/3 is plumbing, HVAC, electrical, permits, architect, engineer and foundation


What are the pros and cons of building vs buying a new home?

Building a new home...

✔️ You get to build your dream home!

✔️ Often less expensive to build a new home than to buy an existing new home

✔️ You often get instant equity

❌ Time intensive (takes 10 months to 18 months)

❌ Potential contractor issues/delays

❌ Potential cost increases (for labor and materials)

Buying a new home...

✔️ Immediate move in

✔️ Established home values

✔️ Established neighborhood

❌ May not be your ideal layout

❌ May not be your desired neighborhood

❌ Purchasing at market value 

❌ May not be any available inventory


Do you have questions you'd like to discuss over the phone?

I'm never too busy for your call.



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