Should You Build or Buy Your Home?
When you’re planning your next move, one of the biggest choices you’ll face is whether to build a brand-new home or buy an existing one. Both options come with real advantages and challenges. Building gives you the chance to design your home exactly the way you want it, while buying can save you money and get you moved in much faster. For Hampton Roads buyers, the decision often comes down to a mix of budget, timing, and lifestyle goals. Let’s take a closer look at the real numbers, the pros and cons of each option, and some key considerations that can help you decide what makes the most sense for your situation.
The most obvious difference between building and buying is the price tag. According to industry data, the average cost to build a new home is about $665,000, while the average cost to buy an existing home is closer to $510,000. That’s a difference of more than $150,000.
Why such a big gap? Building costs come from multiple layers, including:
The cost of land (about $91,000 on average)
Plans, permits, and inspections (around $33,000)
Foundation and framing (over $115,000 combined)
Plumbing, electrical, and HVAC systems (around $82,000)
Interior finishes like flooring, cabinets, and appliances (often topping $100,000)
Landscaping and exterior work (about $28,000)
The builder’s profit and miscellaneous fees
When you add it all up, building a home is significantly more expensive upfront. And if you want a custom design with premium finishes, the cost per square foot can climb quickly. Builder-grade homes average about $158 per square foot, but custom homes can reach $500 or more per square foot. Even something as small as adding another bedroom can push your total cost up by $20,000 or more.
Money isn’t the only difference, time plays a huge role too. Buying an existing home is usually much faster. Once your offer is accepted, you can expect to close in 30 to 60 days. Building, on the other hand, often takes nine months to a year, and sometimes longer if there are supply chain delays or weather issues. That timeline can create additional costs. For example, if your current home sells before your new build is complete, you may need temporary housing or to rent for several months. Those extra moves can add stress and eat into your budget. For buyers on a tight timeline, whether because of work, family, or just the desire to get settled quickly, buying an existing home usually makes the process much smoother.
Buying an existing home comes with some clear benefits. First and foremost, it’s less expensive than building new, both in terms of the purchase price and ongoing costs. Older homes may not have the same level of customization, but they’re often in established neighborhoods with mature landscaping, schools, and amenities already in place. Another major advantage is the speed of the process. If you find the right home, you can be moved in within a couple of months. That’s especially appealing if you don’t want the stress of waiting nearly a year for a new build to finish.
Buying also means you can see exactly what you’re getting. Instead of imagining how a floor plan will look, you can walk through the home and know how the rooms feel, how much natural light there is, and what the flow is like. That peace of mind is worth a lot to many buyers.
Of course, building your own home has benefits that buying can’t match. The biggest one is customization. You get to make decisions about the floor plan, finishes, and features, from the size of the kitchen island to the type of flooring throughout the house. If you’ve always dreamed of a home office, a large pantry, or a spa-like primary suite, building gives you the chance to include those from day one.
Another advantage is that everything is brand new. With new construction, you won’t need to worry about replacing a roof in five years or budgeting for a new HVAC system. Warranties often cover major systems and appliances, which can provide peace of mind for the first few years of ownership. Building also gives you the chance to incorporate modern design and energy efficiency. New homes are typically built to current codes, which often means better insulation, more efficient windows, and updated electrical systems. Over time, those features can lower your utility bills compared to an older home.
For first-time buyers, purchasing an existing home is usually the smarter move. It’s typically less expensive, and you can start building equity right away without stretching your budget too thin. Buying is also the better choice if you’re working with a tight timeline, since most purchases close in a couple of months. If you want to live in a particular part of Hampton Roads where land is scarce or expensive, buying may also be the only realistic option. Established neighborhoods in places like York County, Poquoson, or Norfolk rarely have vacant land available for new builds, but they often have well-kept homes ready for sale.
On the other hand, if you’re financially secure, patient, and have very specific needs for your home, building may be worth the investment. This is especially true for buyers who plan to stay in their home long-term. If you’re going to live there for 15 to 20 years, the higher upfront costs may be worth it for a home that’s perfectly designed for your lifestyle.
Building is also a good fit if you want the latest design features or energy-efficient systems that might not be available in older homes. If you’ve outgrown your current space or have very particular preferences, the ability to start fresh can be incredibly rewarding.
Whichever option you choose, it’s important to stay realistic about your budget. A good rule of thumb is to keep your monthly housing costs, including mortgage, property taxes, insurance, and HOA dues, at or below 25% of your take-home pay. That way, you’ll enjoy your new home without feeling strapped financially.
It’s also wise to set aside a cushion for unexpected expenses. For buyers, that might mean repairs or updates in an existing home. For builders, it often means cost overruns or upgrades that weren’t part of the original budget. Having some breathing room will make the process far less stressful.
There’s no one-size-fits-all answer when it comes to building versus buying. Buying an existing home usually means lower costs and a faster move, which makes sense for most buyers, especially those purchasing for the first time. Building a new home offers customization, energy efficiency, and the satisfaction of having something brand new, but it comes with a higher price tag and a longer timeline.
The right choice depends on your budget, your timeline, and your personal goals. If you’re deciding between building and buying here in Hampton Roads, I’d be glad to walk you through the numbers, explore local options, and help you make a decision that fits both your lifestyle and your long-term plans.
