It's that time of the year again! With theParade of Homes kicking off in Utah County, some of us may wonder, “Should I build a new custom home or buy an existing one?” So throughout the next two weeks, I’ll be listing some of the pros and cons of both! To kick this off, let’s discuss cost and pricing. 

The Cost of Building a New Home 

In looking at the data for the last 60 days, the average price to build a new home in the Spanish Fork, Mapleton and Springville area is $211 per square foot. That’s compared to $283 per square foot if you were to purchase an existing home. While the numbers may vary depending on location, it’s not uncommon to see such results. But before you jump into building a new home, let’s consider why the price difference.

In Utah, the basement is often included in total square footage even if it is not finished. This means you'll thousands of dollars more just to make that space liveable. Also, while some builders will include landscaping, most will only include the basics. That translates to more out-of-pocket expense for you, later. Also, factor in how much you want to upgrade. Installing high-end features throughout the home can add up significantly to the overall cost of the home.

On the flip side, you’ll likely have lower maintenance costs due to newer equipment and appliances, warranty protections, and higher energy efficiency. All that translates to less stress, which some may argue is priceless.

The Price of Buying an Existing Home 

Existing homes tend to have more repairs due to common wear and tear but there are huge savings in other areas. For instance, landscaping a new home can cost thousands of dollars, but it does not increase the value by more than what you put in. Thus, buying an existing home with the fully landscaped yard can prove financially sound. And by investing in strategic renovations and upgrades, homeowners can enhance the functionality, aesthetics, and market value of their property without breaking the bank.

Pay Now or Later

Ultimately, whether you’re building new or buying existing, the financial tradeoffs might boil down to paying now or later. That said, there are several other factors to consider when choosing to build new or to buy existing. I’ll touch on more in our next blog.