Deciding whether to buy a resale property or build new is an ongoing discussion within the real estate investor community. There are benefits and drawbacks to each approach. On a net basis, building new can be cheaper but presents additional costs and factors to consider.
Here’s an overview of the costs of building a house versus buying, the pros and cons of each approach, and whether real estate investors should adjust their acquisition approach.
Cost of building vs. buying a house
So many factors go into the cost of a house. Just a few of these influential factors are location, size, and finishes.
The average cost to build a single-family home was at $248,000 in 2020, whereas the average resale home in America was $256,663 as of fall 2020. According to Realtor.com, the average cost per square foot for single-family homes sat at $123. And according to the National Association