Build or Buy?​

If your dream home doesn’t exist in your dream location you may consider buying land on which to build or place a new home. Perhaps, you’ve already purchased land and are eager to call it home. Next, you’ll need to decide whether to build a house or buy a prefabricated house.

Traditionally built homes are often called stick-built, meaning they are built on-site one board at a time, or “stick by stick”. This term applies even when building materials other than lumber are used.

Prefabricated homes include buildings built in modules that are assembled on site (modular homes), buildings built in transportable sections that are joined on site (manufactured homes), as well as whole structures (mobile homes). A more recent entry to the prefabricated homes line up are sheds built to look like a cabin or small house some of which offer finished interiors.

After securing your location, major factors to consider when deciding to build or buy include:

Restrictions – Land often comes with some restrictions governing its use. Before investing in a prefabricated structure, make sure it can be placed in the location you plan to call home. Common restrictions include the type of building allowed, minimum and/or maximum size, required setbacks from property boundaries, and allowable uses.

Cost – Generally, stick-built structures cost more per square foot than manufactured or mobile homes. The final cost of a stick-built home is also less predictable.

Time – Building a new house takes longer than buying one ready-made. Construction can be delayed by supply chain issues.

Customization – The ways in which you can customize a stick-built home are nearly limitless. Prefabricated homes, while customizable, offer fewer options. Buyers are limited to a certain set of layouts and add-ons.

Equity and Resale Value – Stick-built homes increase in value faster than any other type of building helping you build equity. They are also likely to resell for a higher price than a manufactured home. Mobile homes tend to depreciate or lose value over time.

One of the best ways to choose whether you should buy or build is to talk it over with an experienced local real estate agent. Let’s talk!