Housing prices have exploded over the past year, causing many hopeful homeowners to throw up their hands in defeat as they are being outpriced.
For those thinking they will have to wait years longer for the real estate markets to calm down, working with a custom home builder could be a viable solution.
When you weigh the benefits of hiring custom luxury home builders over buying someone else’s overpriced house, there’s a good chance it could actually work out to be less expensive!
How Can Custom Homes Cost Less?
How? It all has to do with supplies, and supply and demand.
Since the economy has gone crazy post-COVID, home resale prices have risen exponentially.
At the end of last year, the US Census Bureau published data suggesting that the median home price in the US today is nearly $420,000, which is up considerably from years prior.
Cost to Buy Used vs Cost to Custom Build
Conversely, industry experts in real estate estimated at the same time that the price to build a comparable new home with a custom home builder was only $380,000.
That’s a $40,000 difference and probably close to the amount that has a lot of people thinking they have been priced out of the housing market for the foreseeable future.
That difference is likely to increase at least until inflation stops and home sale prices start to go back down again.
Variable – Cost to Buy Lot
The main element that the above estimate does not account for is the price of the building lot a custom home can be built on.
Still, even if that additional $40,000 were spent on land, depending on the size of the home and the cost of supplies at the time of construction, a custom-built luxury home could still come out comparable in price to a pre-existing, pre-owned home.
Build The Home of Your Dreams
Even when close in price, working with a custom home builder gives you one major benefit that buying pre-owned real estate does not - it gives you the ability to build the home of your dreams.
You can buy the land where you want it, choose a home design that works for you, add in the fixtures and finishes you prefer right from the start, and avoid the prospect of making improvements or modifications to make a pre-owned home more workable.
Consider Using A Custom Home Builder
So, before assuming you are at the mercy of today’s inflated real estate market, consider hiring a custom luxury home builder to build a better home for you instead.
Planned well, you could even get away with more house for less money today instead of having to wait years for the real estate market to get under control once more!