When deciding between buying a home or building a custom home, there are several things that people often consider. Here are some common considerations that people have during this decision-making process:

Budget: One of the primary concerns is the financial aspect. People consider their budget and assess whether it allows for purchasing a new home or building a custom one. They evaluate the costs associated with each option, including down payments, construction loan rates, construction costs, and potential customization expenses.
Location: The location plays a crucial role in the decision. Buyers contemplate the available land options in terms of neighborhoods, amenities, proximity to schools, workplaces, and transportation. They consider the convenience, lifestyle, and long-term suitability of the location.
Timing: Timing is another factor to consider. Buying a new home generally offers a faster move-in process, while building a custom home can take several months or even years. Individuals assess their current situation, such as the urgency to relocate or the flexibility to wait for their custom home to be built.
Home Features and Design: Customization is a significant advantage of building a custom home. People contemplate the opportunity to design their dream home according to their specific preferences and needs. They may consider factors like layout, size, architectural style, number of rooms, floor plan, energy efficiency, and technological advancements. A home designed specifically for your lifestyle can have a tremendous impact on your lifestyle.
Maintenance and Repairs: Homebuyers think about the condition of existing homes versus new construction. They evaluate the potential maintenance and repair costs associated with each option. Some prefer the peace of mind that comes with a new home's warranties and modern building standards, while others may be willing to take on the responsibilities of maintaining an existing property.
Time and Effort Investment: Building a custom home demands significant time and effort. People consider their willingness to invest in the process, including researching builders, obtaining permits, making design decisions, overseeing construction, and managing the project. On the other hand, buying a new home often involves a more streamlined process with less involvement.
Resale Value: While building a custom home allows for personalized design choices, buyers also consider the potential resale value of their investment. They may evaluate the market trends, comparable properties, and the desirability of customized features when assessing the long-term value of a custom-built home versus an existing property.
Emotional Satisfaction: Building a custom home can be a fulfilling experience, as it offers the opportunity to create a home tailored to personal preferences. People consider the emotional satisfaction they may derive from having a home that reflects their style, personality, and vision.

Ultimately, the decision between buying a home and building a custom home depends on individual circumstances, priorities, and preferences. It is essential to carefully weigh these considerations to make an informed choice that aligns with one's goals and resources.

Pros & Cons of Buying vs Building a Home

the cost to build a million dollar home.

Though there are many things to consider, the following will be the pros and cons for buying vs building a house.

Pros & Cons of Buying a Home

The following are pros and cons of buying a home:

Category	Pros	Cons
Timing	Ready for Immediate Move-in	Time will be required to update the home according to your specifications
Neighborhood	Established Neighborhood	Limited by the home characteristics and design of lots in a particular area
Financial	Easy process for financing through a mortgage	Many are unaware of how easy construction loan process is
Resale Value	Clear range of resale value (price per square foot).	New construction delivers at the max resale value (price per square foot)
Maintenance and Repair	Known Maintenance and Repair Needs	New Construction Comes with Warranties and Buyer may be Surprised by Sudden and Expensive Home Failures
Landscaping and Amenities	Established Landscaping already present	Time and Expense for New Landscaping to ‘Grow In’
Homeowners Association (if applicable)	Established Homeowners Association	Lack of Ability to Affect the Home Design

Pros & Cons of Building a Custom Home

The following are potential pros and cons of building a custom home:

Category	Pros	Cons
Customization	Complete Customization	Longer Timeframe for Move-in
Design	Higher Satisfaction with Personalized Design	Aesthetic desires may be expensive
Financial	Interest only during the course of construction, and after turns into 30 year fixed	Interest rate may be 0.25% - 0.5% higher
Home Value	Potential for built in equity upon delivery	Requires More Time and Effort in Decision-Making
Quality	Modern Building Standards and Energy Efficiency	Current codes can drive build costs
Maintenance and Repair	Warranty and peace of mind of new	None

Buying vs Building a Home: Which is Cheaper?

The difference in cost between buying and building a home can vary significantly on home location, construction vs purchase costs, material costs and more. Due to the varying cost of buying vs building and factors between the two, the cheaper option will depend on what matters to you most. Typically a new custom home will cost more than what’s on the market, but that’s because everything will be new and to your exact specifications. However, a new custom home will likely come with significant built-in equity, meaning it will be worth more than what you put into it.

The cost to buy a house in San Diego can range anywhere from $700,000 to $2 million. This does not take into account potential renovation costs to make changes to the home which can add to the total cost. The cost to build a home typically starts at $800k - $1 million though the home is built to your specific needs and specifications. And because the home is new, it will most likely need less fixes and renovations in the future. Someone may buy a $1 million dollar home, in a less desirable location, that needs renovations which could ultimately cost the home buyer more in the long run. Or someone could build a custom home to their desired specifications and spend the same amount depending on the circumstances. The cheaper option will just depend on the options, the housing market, and other factors that are most important to you.

Should I Buy or Build a Home?

Ultimately the choice to buy or build a home will depend on what matters most to you. In San Diego, a lot of the real estate market is homes from the 1970’s that are outdated or in disrepair. If the real estate market is too competitive and you want a customizable home built to your personal lifestyle and tastes, a custom home build may be right for you. If you want something ready to move in, then buying a home may be right for you.

Buildable is Your One-Stop Shop for a Custom Home Build in San Diego

Building a home in San Diego takes immense time and effort and can appear overwhelming to those who start the journey alone. However, building a home can be straightforward when you approach the process with experts by your side who can guide you through every step.

At Buildable, all of the people you need to have a stress-free home build will work with you to create the home of your dreams. Read about our team, talk to us, and get the answers to questions you may have about starting the custom home building process in San Diego.

Building vs Buying a Home: Which is Better for You?