Build It or Buy It? Let's Talk About Homes!

theresa rolen • April 14, 2025

Buying A Home vs. Building... What Is Involved?

🏡 Build It or Buy It? Let's Talk About Homes!

Hey friends! 👋

Have you ever dreamed of your perfect house? Maybe with a treehouse, a giant kitchen island, or a slide instead of stairs? 😄 You can get a home like that in two ways: buy one that’s already built, or build one from scratch.

Let’s break down what each option costs—and what to expect—so you and your family can make the best choice!


🚧 Building a Home from Scratch


If you want to design every little thing in your home, building might be the way to go! But it takes some time—and more money upfront.


💰 Upfront Costs for Building:

  • Buy the land – Before you build, you need to buy land. This usually needs a big down payment—sometimes 20% or more!
  • Higher earnest money – When you agree to build, builders usually want a bigger deposit (called earnest money) than when buying a regular house. This shows you’re serious!
  • Plans and permits – You have to pay for blueprints, inspections, and city approvals before anything is built.
  • Construction loan – This is a special kind of loan you get in steps as the house is being built.
  • No down payment help There’s usually no down payment assistance available when you build from scratch. You’ll need more savings upfront.
  • Loan types – Most people building use a conventional loan or a VA loan (for veterans). FHA loans usually don’t work for this.


🏗️ Things to Expect:

  • It can take 6–12 months or more to build your home.
  • You may still have to pay for your current place to live while you wait.
  • You get to choose everything—paint, floors, lights, cabinets—but that also means more decisions (and sometimes stress!).


🏠 Buying a Home That’s Already Built

This is the faster and easier option for most people. You look at homes, find one you like, and buy it!


💰 Upfront Costs for Buying:

  • Down payment – This can be as low as 3% or even 0% with some loan types!
  • Earnest money – You still pay this when you make an offer, but it’s usually less than with building.
  • Closing costs – These cover things like inspections, loan fees, and paperwork.


🏦 Loan Types for Buying:

  • Conventional loan – Great if you have a strong credit score.
  • VA loan – For veterans, with no down payment in many cases.
  • FHA loan – Helps buyers with smaller down payments.
  • Down payment assistance – Some programs help you pay less upfront or even give you grants!


🏃‍♂️ Things to Expect:

  • Move-in ready! You can often move in just a few weeks after buying.
  • Less stress—no need to make every tiny decision.
  • You might want to fix or update a few things, but it’s usually cheaper upfront than building.


🧠 So... Which One Is Right for You?

Here’s a quick way to think about it:


Build if:

  • You have more money saved and want to design everything.
  • You don’t mind waiting several months.
  • You don’t need help with your down payment.


Buy if:

  • You want to move in fast.
  • You want more loan choices.
  • You’d like to use down payment assistance to help with costs.


🏡 No matter which path you take, your dream home is waiting. Let’s make a plan that works for YOU! 😊

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