THE 3 Ms OF BUILD VS. BUY

How exciting! You’re getting ready to make one of the biggest purchases of your life—a home. Whether it’s a starter home, a “we’re empty nesters” home, or a home that’s simply a better fit for your family, it’s important to consider these key elements when deciding whether to build or buy.

Money

Unsurprisingly, the number one factor in deciding whether to build or buy is your budget. While having a fixed number in mind is helpful, it’s crucial to recognize that, regardless of your choice, there will always be additional costs.

When buying a home, it’s easier to stay within budget since many costs can be anticipated ahead of time. For example, expenses such as a home inspection before move-in and property taxes can be planned for.

Building, on the other hand, often comes with unexpected costs that arise during the construction process. For instance, when building a custom lake home, unforeseen complications with grading (the reshaping of land) may occur after purchasing the lot. Similarly, if tearing down a house to build a new one, you may discover underground piping that wasn’t on the blueprint, leading to extra costs for removal or rerouting.

Additionally, each state has its own laws and regulations. In southeastern Wisconsin, for example, if any part of your build takes place between November 1 and March 31, winter charges may apply for frost protection and additional heating.

While these issues are minor in the grand scheme of things, it’s important to understand their financial implications. Custom homes are generally a better fit for individuals and families looking for a tailored living space, but it’s essential to allocate extra funds in your budget to cover any unforeseen expenses.

Market

As we know, the world is constantly changing—and so is the housing market. When deciding whether to build or buy, research the current market conditions to make an informed decision.

Interest rates are typically the same for both building and buying, but keeping an eye on them is crucial. It’s best to build or buy when interest rates are low. If you’re purchasing a home, keep in mind that placing an offer does not guarantee you’ll get the house, especially in a fast-moving market.

Motivations

When deciding whether to build or buy, consider these key questions:

Why are you moving?
This is the most important question, as it influences all other decisions. Does your family need more space? Are you looking for a better kitchen? Are you relocating for a job? Defining your primary reason will help guide your choice.

How much time do you have?
Building a home typically takes a year or longer. If you need to move quickly, buying might be the better option.

Do you plan on staying long-term?
Because of the time and cost involved in building, buying is usually the better option for a short-term solution. However, if you’re looking for your forever home, a custom build is often the way to go.

What are your non-negotiables?
Whether buying or building, you’ll have a list of must-haves. Do you want a large yard? A porch overlooking a pool? A guest suite for grandparents? Create your list and determine whether you can find these features in an existing home or if they require a custom build.

Is an addition or remodel an option?
This option is often overlooked but can be a cost-effective and practical alternative. If all you need is a larger kitchen with a walk-in pantry, consider remodeling instead. If you need one more bedroom for a growing family, an addition to your current home may be a simpler solution. Custom remodels allow you to get exactly what you want without the hassle or cost of moving.

Whether you choose to build or buy, JFK Design Build is here to guide you every step of the way. With over 30 years in the building business, we understand the 3 Ms of the decision-making process and can help you determine the best option based on your timeframe, budget, and goals.

For more information, contact us at https://jfkdesignbuild.com/contact/.