It looks really nice, but for a 3-4 bedroom house, the price seems high. Land and out buildings factor in of course, but this isn't for everyone. As you age, taking care of this much land could be quite overwhelming too, so think long and hard. Building new, in general, is more expensive than purchasing existing, especially if the land is big factor. So, it is a dilemma. Cost of materials to build has gone up a lot in the last several years, driving the cost of new homes up. Catch 11, get more of what you want in a "new build" but possibly pay more; or buy existing and spend on modifications. You can't get everything on the main floor with this house, so this is a problem as you age as well. Lots to consider. It looks to me like your "wishlist" is more about the "property", views and barns than the house? So, might need to keep looking.

Do you have the time to be an O/B?

Thank you Flo! The land is big, but I figure that it is a plus, a possibility for extra income, of subdivision if need arises, a rental to a local farmer, an investment for now. A land with a view here is expensive.

I do care about the inside of the house (white kitchen, high ceilings, lots of light, wood floors), but this house just seems to fill almost everything on my wish list.

What I did not know is that building new is more expensive. I assumed that because you go through so much trouble, it should be cheaper.

Robin0919, not sure what O/B stands for, but if that means time to be building, then no, I do not think I do. I want to spend time with my kids instead.

But this is really the first house I like, and and it is a stretch.

The houses we looked at before were not cheap, mid range, they might have had beautiful land, but changing the insides was such a big job, that it seriously looked like building your own would be easier. For one, there is never an open floor plan, and you never know which wall can be knocked down, the ceilings are low and cannot be built up, or they are built cheap, or usually very awkward, or it is old, and asbestos and mold might come up, or just plain run down house, or it is so huge that I do not know what to do with it.

You're talking about a little less than $1M build price after land cost. Minus a $25k horse barn and $25k pool, etc. You can build what you want with an architect and builder team with current design and tech for that money. Here's an example of an architect who works nationally.

This type of team has the expertise to work directly with manufacturers to offer a quality level you are unlikely to find otherwise So cheaper, maybe but better quality for the money . . . .I'd investigate.

Sounds like you are in love! Negotiate to get price a bit better for your circumstances. Also, think very seriously about TCO. Total Cost of Ownership. Will your monthly income/cash flow be able to handle unexpected costs? Utilities? Vacation time with children? Saving for emergencies? Installing new hot water tanks? Etc.

You're talking about a little less than $1M build price after land cost.
Minus a $25k horse barn and $25k pool, etc. You can build what you want
with an architect and builder team with current design and tech for
that money. Here's an example of an architect who works nationally.

I think that is a significant understatement in price if they are building in New England, though I suppose it depends exactly where. Boston metro area? No chance of that wish list coming in that cheap.

It is best to ask about cost of construction locally.

Q: How much cheaper is it to build?

A: -$450,000

"...How much cheaper is it to build?..."

It is almost never cheaper to build...did someone tell you that it is?

The appeal of building is to get what you need and want. And if you work with an architect, it will be creative and harmonious.

I assumed that because you go through so much trouble, it should be cheaper.

If only lol.

Don't build. It's a couple years commitment if one's lucky, and with your wish list, it won't be cheaper. I think. Granted I don't know where in New England you are..But my guess It can only be more expensive. Now, you pay not only with money. You say you'd rather spend time with your kids-building will take lots of that time away. Time, and energy. Building is right for some people..or for some people at certain stages of their life. If you already know you're not there right now, and don't wish to be-there's no reason to start with it.

I'm stealing " I assumed that because you go through so much trouble, it should be cheaper. "..with your kind permission..)) Can be applied to so many things in life..)))

Echoing all of the above. We just purchased a 12-year-old custom home, complete with extensive landscaping and a barn.

Long story, but they ended up giving us an itemized list of what they spent building (not including lanscaping costs).

They paid more to build it all than we paid for it. It was still in flawless condition and high end. And building/land costs have shot way up here in the last 12 years.

Moral: if this is your dream home you can be almost guaranteed it would cost you far, far more to build it yourself, not to mention the years you’d wait for landscaping to mature.

Just my 2 cents...

Building can create value because you get a home modified for your specific needs and wants. That can create efficiencies that may lead to monetary savings. In other words, if you have 3,000 square feet of wants but can only find those in existing 5,000 square foot houses, building might be a great value.

However, building is very rarely cheaper for the same home.

Building as others have said is not cheaper than buying used. I just built and trust me it cost more. Both in time, energy and yes, money.

We feel that we both do not have the energy and don't want to spend time working on a house, building a small farm, a barn, planting a garden, and orchard, just to move again in 5-10 years.

Sounds like you have your answer: Buy an existing house.

I don't get the idea of going to the expense /trouble of building /buying your dream house ... then moving in 5-10 years. Either it's "this house is great while we have small children" or "this is the house in which we'll stay 'til the kids finish high school" or it's your dream house ... if it's a 10-year house, don't stress yourself with meeting the dream house ideal.

I was wondering if you can tell me if it is really much cheaper to build your own similar quality house?

Building is more expensive. And more time consuming.

As you age, taking care of this much land could be quite overwhelming too, so think long and hard.

Yes, having lived on a farm most of my life, I assure you, this much land is a lot of work. Don't romanticize all that space -- be realistic too.

I assumed that because you go through so much trouble, it should be cheaper."

No. You build because you end up getting exactly what you want -- small details like a connection between the master closet and the laundry room, an oversized pantry, a bay window over the kitchen sink, stained glass transoms, whatever else. It's not a money-saver.

Nice house but your "but it is a big stretch for us " is something to think about. Depending on the age of your kids their expenses will be increasing in the coming years. If it has a HOA which many of these developments do or your counties zoning law allow the rental? If you are planning on having the horses for the kids the vet and other care to properly care for the horses can be expensive.

Which brings up another point. Build or buy the house you actually need and not the one that's your fantasy. For example, if you never entertain sit-down dinners for 20, don't buy or build a house with a huge dining room just because you fantasize you'll start having large dinner parties. You won't.

If you fantasize you'll have acres of fruit trees and vegetables but you've never gardened before, don't fantasize that you'll suddenly start gardening and having a green thumb. You won't.

If you fantasize having family nights all around the game room table and watching movies together, but you've always all retreated to your own corners, don't build that game room/family room because you guessed it. You won't use it.

Build or buy just enough house that you'll actually use.

I do speak from experience. In my old house, we had a living room, play room, office, studio, family room, dining room, eat in kitchen and sun room.

I fantasized having family over to dinner in the dining room. (Except I really dislike cooking!)

I fantasized the kids using the playroom, but in reality, they wanted to be with us in the family room.

I fantasized sitting and reading in the sun room. (Never did. Was either too hot or too cold)

I fantasized sitting and entertaining friends in the gorgeous living room. (Yep we did. Maybe 4x a year.) The only other time it was used was to pile up the Hanukah presents and light the candles.

I found I preferred working at a table in the family room when I did my art versus working in the studio and the office was never used.

In face, the only two rooms that were ever used on a regular basis were the kitchen and family room. Once the kids became teens, they would go hang out in the sun room.

Very wise words from cpartist.

As you age, taking care of this much land could be quite overwhelming too, so think long and hard.

Yes, having lived on a farm most of my life, I assure you, this much land is a lot of work. Don't romanticize all that space -- be realistic too.

Even a large garden, without a farm, can get to be a lot of work as we get older.

Another thing to consider even with hobby farming (vs farming for a living) is that you don't want to overextend yourself buying the house and land, because there will be so many on-going annual and seasonal expenses, from chicken feed, bulbs for the garden, repairs to the greenhouse, and re-roofing the barn. What will you do for snow removal, especially if you need to clear a path from the barn to the paddock or pasture for the horse or cow?

Make sure you have as much savings as possible for life in the country, especially if you have plans that involve a barn, cow, horse, chickens, garden, greenhouse, and even small machinery etc.

Do you live in the country now? Do you garden? If not, it might not be a bad idea to have a two- (or even three- ) part plan for living in the country. Especially if your kids are younger and you're busy working (at a job or with them). Start off with a smaller garden, plant a few fruit trees, get some chickens and maybe a small greenhouse, and if everything thrives and you enjoy it, then consider moving up to a larger property with scope for more.

I’m not a professional, but I live in New England on a 32 acre farm with horses. Look at comps and make a low, low offer. They took a very low offer for our farm. It looks to me like the property might need a new roof. Investigate and if so, ask for it off the price with some $$ for unexpected contingencies. And get it done. I think you should seriously investigate the rental or AirB&B potential. Where is it located, what is the rental market like and are there any issues whatsoever with the rental part of the property that will give you headaches as a landlord? Where we live in NH, good rentals are both hard to come by and at a premium (but good renters are still hard to find). If that is the case in your area, that may put you at stretch. Also ask if you want to be a landlord with the headaches that come with it. If you envision two or more horses (they don’t like to be alone!!!), you will need more than one large paddock or they will be in dirt/mud in no time. Plan to build another one or two so you can rotate/sacrifice. Does the barn have hay storage so you aren’t always running out to buy hay? Does it have a water system that doesn’t freeze? A place to store grain warm enough that it doesn’t freeze? Is there a nearby place where you can buy hay and grain and barn/farm supplies? You will go there more often than you think. If you don’t have a truck, you will need one. Can you afford to hire someone to snow plow or will you need a tractor/snowblower/plow for truck to do it yourself? How much of the acreage is in grass or pasture? To keep it nice it has to be mowed 2-3 times a year minimum. More is better. And limed regularly. Think tractor/spreader. Where we are, hiring someone to lime seems impossible, not just expensive. We used to pick up the phone and call Agway. Not any more. And I can’t tell you how much time I spend on the mower in the summer. That’s where I am often when the sun is going down. Most of the time I love farm chores and I do sit by the pond at sunset, but maintaining the status quo of 32 acres is a ginormous amount of work, a lot of which has to done at the right time, whether it is convenient or not. My mantra is it’s all good - everything is perfect just the way it is right now in this very present moment. And I keep repeating it. Often.

I am familiar with this home. It is ten minutes from me. It is beautiful and a good value. The grounds are gorgeous! It you were to construct the home today it is 2 million easy. It does need a new roof. The only negative that you might not be aware of is that it is in a bad school district. It's literally on the line, one parcel over and you get the better school.

Around here you can get a far better value purchasing rather than building. I spent a fortune, and I hear that it got even worse in the last year with the cost of materials and labor going insanely high.

'Long story, but they ended up giving us an itemized list of what they spent building (not including lanscaping costs).

They paid more to build it all than we paid for it. It was still
in flawless condition and high end. And building/land costs have shot
way up here in the last 12 years..

2pink.......REALLY!!!! You REALLY BELIEVED their 'itemized list'????? SERIOUSLY????? They LOST profit after 12 years AFTER building/land costs skyrocketed?????

How could you believe their 'itemized' cost????? IMO.....you were REALLY taken advantage of!!!!

I love to build houses. I love to renovate houses. I've done both. It costs more to build. Both are a pain. I enjoy the pain.

25K For a good barn in the Northeast and 25K for a pool that you may get to use three months out of the year. Not going to happen. Those are much higher costs than estimated and provide little value or specific value.

High end properties with land, let's value them at one million and above. Generally, they have a very limited number of buyers. The loss of tax breaks is decimating the high end of the market. If you look at the days on market at the high end, it's not good. I am seeing a lot of multiple price reductions.

If you decide you want this, bargain hard. Don't settle on a standard inspector. Get a real electrician, a real HVAC technician, a real roofer, a real plumber and a real builder to provide inspections and real world cost estimates. If that roof is questionable, look for leaks and mold damage. Get three estimates on the roof and take the high one. Then, drive a very hard bargain.

I can only caution you with a few of my hard-earned lessons: Dirt is an opportunity. Rot costs money. You make money in real estate when you buy, not when you sell. Renovators are few and far between. Don't fall in love, the break up is ugly. Get a good price or be fully prepared to walk away. There is always another one around the bend. Use these and you will be an educated, prepared buyer.

Robin,

i can see how you might think that since you don’t know the back story, but I can assure you it was accurate infornation.

This isn’t really surprising to people who follow the market. Construction costs have gone way up. It costs much more to build a custom home today than 12 years ago. however, building custom wasn’t a ‘bargain’ option even 12 years ago, and no one should build custom to ‘make a profit.’

My point is that if the OP has found a ‘used’ home she loves, it’s not realistic to think she could build an equivalent new for less. If we were to build today the house we just bought, it would cost far more than we paid. People pay a premium to get a new house that is just the way they want.

New, non-custom construction here also sells for higher prices than ‘used’ homes.

Buying used will almost always be a better value if you don’t have a particular need/desire to build custom.

I am no expert on it but I agree it's usually cheaper to buy than build. We did have one friend save a ton by being his own GC but he said it was a full time job and he is a very smart and talented man. It's not something to jump into if you aren't familiar with the processes.

Six yrs ago we bought a 2 story home. We have 3 kids. We never enjoyed it and finally moved back to a single story home in Dec. Game Changer for us. We interact with the kids more and I am in their space so often. So much easier to keep it clean and as we are heading to the teen yrs I am glad to have better supervision. In the old house we joked they had their own apt upstairs.

As far as budget we are always conservative. You mentioned this is a big stretch for you. That would scare me. I would not want to be house poor and would make sure I had a big safety net before spending that on a home.

It is a pretty home.

Good luck

Never buy a house that is a stretch for your budget. A house note is only roughly half to one third of the monthly expenses of home ownership. It’s better to rent than to be house poor. If you can’t really afford the next big maintenance item coming due, you end up neglecting the house and lowering its value. You lose money and introduce even more stress. And that’s before the foreclosure happens because you cut it too close.

Some thoughts...

This thread has brought into focus how unfamiliar some are with construction costs in the Northeast. A 25k pool? Who what where when why? Just the water and electrical are 10k, then add 140K for the pool. Then add 50K for the patio. New York Sucks! How did I wind up in the worst state out of 50? I see a guy in Texas paid less than half this and didn't even need a permit.

Building a new home is not smart. It's something you do because you can. You get custom everything, including custom bills from 50 different tradesman. One thing that still shocks me is when I walk into someones house now that is clearly some bottom rate builder grade whatever, and everything looks remarkable tight is many places that I struggled. I have small imperfections that I look for when I'm in other homes and they don't have them. That stings! They paid 60 a square foot, and I paid 4 times that.

The best case for building new is making the house green and tight. Spray foam, good waterproofing measures, metal roof, Geothermal HVAC, and all the other new best practices for smart living. My old electrical outlets in my previous home would have an inch of ice buildup on them in the morning after a cold night. Amazing how wasteful that is.

Also, if you can't spend half of every day being onsite, then I can't imaging building a home. There are countless ways that require your input in realtime. Plus just the satisfaction of watching all the effort and skill and craftsmanship being poured into the creation of your home. That is what makes the expense somewhat worth it.

A house note is only roughly half to one third of the monthly expenses of home ownership. It’s better to rent than to be house poor.

I agree with the 2nd sentence but the first one? Do you mean that if the mortgage pmt is $2000 then a homeowner is spending $2000-4000 more than that on monthly maintenance? How do you figure?

There is gas and oil and time for the yard maintenance, the weekly home maintenance, the annual home maintenance, the desired home improvement, the home decorating, the home furnishing, the funding of the savings account for the inevitable systems replacement like the roof or hvac, plus taxes and insurance that do nothing but go up. There is nothing quite like going inside a 6000 sf home with only the den and the kitchen are furnished and occupied, and the bedrooms have mattresses on the floor. The rest of the public spaces have peeling paint and moisture damage from a badly patched roof that needed to be replaced, and a garage sale thrown out sofa as the “furnishings”.

Owning a home means you own all of the everything, including the problems. Those cost, and it’s why you have a savings account devoted to that as well as a general savings account.

Besides the monthly mortgage payment, there's additional sums for property and related taxes, plus home owners insurance, and flood insurance in flood zones. And then there's the monthly utility bill, TV/internet/phone bill and home owner's association (if applicable).

Never buy a house that is a stretch for your budget.

Financial advice is not one size fits all. There are times when it is smart to stretch your budget for a house and there are times when it is not. An individuals financial situation is unique to them and it is never a good idea to substitute blanket statements from anyone for real financial planning and/or advice.

I have advised people to stretch their budget for a house many times and it almost always worked out (houses are a risk in and of themselves). I have seen many areas where demand drove up the cap rate to 10% and in those cases long term renting will never lead to financial security. I have also seen many situations where farming was a key requirement to be happy, so using an off-the-shelf financial metric where the utility function is based on some general view of entertainment expenses just doesn't work.

A house note is only roughly half to one third of the monthly expenses of home ownership. It’s better to rent than to be house poor.

Maintenance costs are roughly 1% to 3% of a home's value annually. Which is at most half of the monthly note in repair expenses. Between rental properties and homes I have owned a lot of property and never have I had monthly expenses equal the note so the idea that they could double the note would be crazy.

I put a new roof, A/C, windows and refinished the floors in a rental property I have owned for 6 years and the total cost of that plus normal maintenance was about 40% of my mortgage cost and that was with a below market cost. If I actually did a note for market value, the maintenance would be 26% of the note payment.

The issue is "cash flow" not average costs. If several major problems occur in the first several months, it could cause severe financial stress. It is true, each situation is unique, but it depends on what "stretch" means in this case. If every available penny is being put into the purchase, then this is a bad idea. If there is a 6 month "reserve fund" for six months rent to deal with emergencies, then maybe this can work. Big properties require big dollars to maintain. Just energy costs can really be shocking. So due diligence and care must be taken before leaping into this property. The school district issue alone would be a big issue with young children, unless you plan private schooling which is also a big expense for 3 children! Do be cautious.

The issue is "cash flow" not average costs. If several major problems occur in the first several months, it could cause severe financial stress.

This statement doesn't work as a general statement anymore than the other statement does. Generally equity is easiest and cheapest to tap in the first 12 months after closing on a home. Assuming that there is equity in the property, which there will almost certainly be in a $1.5 million home.

I have advised thousands of people on financial matters, most of them fairly poor as I do it for charity. There is a financial risk in almost any purchase, and this is especially true of homes as the risk is higher. You work to mitigate that risk, work to sure the reward is worth the risk and then you take a chance.

Again, financial advice should be specific. There is simply no way to help people make a wise decision when we know so little. You don't even know their income, they just said it is a stretch, which means nothing to me.

Of course, each individual has to come to grips with their own unique circumstances. My "advice" is to be "careful". Nothing "irresponsible" about that. Caution is always a good idea in the housing market. I am merely pointing out realities that could be experienced if the "stretch" is too far. The OP has to digest all information posted here and determine what best applies to them.

My "advice" is to be "careful". Nothing "irresponsible" about that. Caution is always a good idea in the housing market.

Even seemingly harmless advice like this can be dangerous. Caution is not always a good idea, sometimes the best idea is to take a chance. In fact, I work with people to mitigate the exposure of decisions that have some serious risk.

I can think of multiple times when people decided to wait and save for a purchase only to have interest rate increases and real estate appreciation forever move it out of their grasp, or end up paying significantly more for the same house they could have afforded all along.

However, since we seem to want financial advice... This is what it looks like.

If you have time before making a purchase the simple and correct answer to test the right house payment for you is to regularly apportion some amount of your pay into a savings account that you leave alone. If your lifestyle changes uncomfortably in some way, then lower the amount you are apportioning. Once you find an amount you are comfortable with for several months, add that to your current housing costs and reduce that amount by 30% and that will be the maximum amount that I recommend to internet strangers for mortgage, taxes and insurance.

If you don't have that kind of time then get your bank statements and do the exercise in reverse. Write out all of your expenses every month and find the things that you will not be able to afford with the new house payment. For this example it really needs to be more than 30% above mortgage, taxes and insurance. I would do at least 50%, and maybe considerably more, because some of those things that you think you want to give up are things you are really not going to give up. You will quickly figure out what you are comfortable with.

These answers are not substitutions for financial planning with someone with real access to your data. However, they are a lot better than advice that isn't tailored specifically to your needs.

Some very useful advice here, a lot to think about. Thank you so much!

We live on a small farm now, 8 acres. We have tractor with a plow for snow removal. We use the barn year round right now for chickens. I would not mind couple of goats or a cow down the road. we are in Dutchess county, zone 5b. The pool is an extra for me, I do not see the need if we were to build. There is a natural swimming hole nearby. But if the house already has pool house that we would buy, then it is a plus. Kids would love it.

I have a garden right now, some fruit tress, I planted last 2 years . It is some work in summer, but I like it. Annual garden: tomatoes, peppers, ism work than fruit orchard.

Virgil, we definitely have to include the bills in the monthly amount to consider that house. And one needs vacations...I totally agree :) Flo and and Bry911 said some things necessary to consider in terms of finance, we will be doing a lot of thinking.

Dan1888, A barn here is more like $35, $20 K if you build it yourselft, I think. Foundation only would be $10K, but I do not know for sure. I believe mid class landscaping is around $25000: a path in the back, a path in the front, driveway stone, plants and patio.

Course 4111 we are in Dutchess county. There are all kinds of home prices here, there are all kinds of school taxes, starting with a minimum. if one wants a home in a secluded area, that is not going to have built around in 10 years, you have to pa much more

You are right, a lot to consider, and I am glad you asked the question so you have success in whatever you decide. Good luck!

Aprilneverends, no problem :) lol

Cpartist, would you build it again?

I try not to romanticize, although it is easy to get carried away. :)

For the most part I know exactly what I want. I also like to make sure the loss is not huge, if it does not work out. For example, I wanted some fruit orchard, but my soil is horrible clay. So I was more patient than usual ;)) , just buying couple of trees and waiting if they will do good. The trees are still here (most of them :) ), but if I had lot them, it would not be much.

That house has one extra room we do not need, it is also has a huge basement we do not need (right now at least), but .. our current home has a bit less room than we need, and it makes things very difficult. Like they say, if you are set on accomplishing a task, and you do not have tools or designated space, it is going to be very difficult.

I have to admit, I fell in love with this home

I still see the drawbacks though. For example, i always wanted to have home on one level, I hate going up and down the stairs, and I hate not seeing my children, and them being in their room :) .

It is also almost impossible to find what you want in a home, when you are buying existing. I have not seen here home build on one level, and it would be to expensive to build anyways, I suppose.

Now have to decide if our peace of mind of just moving in and living, and not building or modifying is worth the extra price. :) And if we can do it financially too.

Would it be possible to add onto your existing home? Doing a addition, while difficult might be something to consider. Nothing in construction is easy and each has it's downsides but having a large family (we have 4 young ones) we wanted each to have their own room, so we needed a 5-6 bedroom home and we had very little money. We bought a 1900 Victorian farmhouse and "restored" it over a 10 year timeframe. At 10 years, the young ones were going off to college, so it was time for a change in any case. Time does change your needs and requirements, so perhaps a addition onto your existing home is a better solution? Perhaps even a large additional garage with a game room on second floor for the kids to hang out and you would rent out later. Think about those type options.

For me in my build, it probably cost me a about a 20% premium to build new vs. to buy existing.

Would I do it again?

Probably.

But I swear I've lived the "Goldilocks and The 3 Bears Version" of building a new home. What I mean by that is, the first house I had built for me was too small. (Hindsight - I was too young, too poor, and should have bought something already built). The next house I had built - my current - is too darn large. (I have overcompensated for the first house.)

So now I'm swearing if I ever build again, my 3rd and final build will be perfect. You know, allegedly.

All I can tell you about building new is that it will take longer and cost more than you think - AND I can't promise you that you will indeed love the end result more than if you'd just bought an existing home.

The shocking truth is that nothing is ever perfect, so it's a special treat when you realize your brand new home that you paid a hefty premium for has some flaws, annoyances, whatnot - and you can't even blame them on the prior owner! ;)

Cautionary tale and a big fat ‘it depends’:

Our extensive remodel of our current temporary home has been done for pretty much half the cost the local mid range builder would charge for the same quality. The catch? We are doing it entirely ourselves and it has taken months because it is a side job on our existing packed schedule. The question upthread was a good one - if you’re talented, patient, and have the time to learn you can indeed be an owner/builder and save yourself some money over contracting it out. But time is the big sacrifice, and quality can be an issue if you don’t know what you are doing.

We own the land for the place we are going to be building when this temporary home is complete and as the plans come together it looks like we are saving there, too. Somewhere in the 30-40% range, but that figure won’t be nailed down until we have finalized materials and systems. But time is money and we are spending the time, massive chunks of it, in lieu of the cash on hand. Some of that is necessity - it is very difficult to find builders able to do certain systems and build techniques we want to implement. But the long and short of it is that this is a huge undertaking and not for sissies. If you’re paying an architect and builder, your new build would cost you the same or more as existing construction in every market I’ve ever lived in.

There are lots of valid reasons to build your own home, but unless you have time and significant skill then saving money really isn’t one of them. And I say that as the crazy person doing just that, twice in a row.

Cheaper to build than buy existing? Not often. My Husband and I finally finished our new build second home last year and yes, it was cheaper for us to build instead of buying existing. How so? We had already secured the lakefront land years ago when it was less expensive. Another factor: we acted as general contractors and we did all of the insulation, finish carpentry, tile work, painting, landscaping, flat cement work, and pavers on the project. It took a lot of time and a lot of hard work and energy. By the way my husband is a licensed builder and this was our 5th new build home so we are experienced doing this. How long did it take? A bit over two years for the structure and another 6-8 months for landscaping (it's 3 1/2 hours from our primary home so travel was also a factor in timing). Cost of materials has gone way up and the trades people, well if you can find them to show up and actually finish the job, you'll pay top dollar. Always assume the job will cost more than what you budget..... it always does!

Currently we are looking to move from our primary home and quite frankly it doesn't pay financially to buy the land, perhaps install septic and well, and then build. There are existing homes for sale ,which even after doing the updates, will come in cheaper than a new build. Something else to think about..... how much will your property tax burden be on a new build compared with an existing home?

Just my two cents!

From a structure standpoint it is almost always much less expensive to buy existing than to build. The one exception I've seen is an older structure with highly desirable craftsmanship that is impossible to get today.

Land/Site can vary things though - location, location, location. People increasingly want to live closer to things where they can safely walk/bike to school, grocery, dinner, etc. The desirability of these locations (near downtowns or village centers) will drive the overall purchase price up considerably above building new (similar size/quality) in a suburb for example. But again, this is the land/location value that is increasing, not really the structure.

If you truly expect to stay in your house for life (and I think that's a good thing) then any loss on resale due to it's be further out shouldn't be much of a concern. Given what I've seen quickly in this thread I'd personally recommend buying existing though.

One final note, if you have young kids who will be becoming teens (rather than teens who'll soon be moving out) then I'd be very cautious about being very far out. It works quite well for some people but I've heard many many stories of people who thought it'd be great only to find themselves having become slaves to the taxi service they provide to their kids and then stressed every time their new teen driver is driving on county roads (the most dangerous road types in the U.S.) to go somewhere.

Echoing everyone else, it’s generally much cheaper to buy than build. We built our dream house in 2007 and foolishly sold it for an ill-advised job transfer in 2014 - it was perfect for us but it cost about $2.2M including a $750K lot for a 5000 square foot house, and that’s with my spouse being the architect and riding herd on the builder. We were lucky to get most of our money out at the time since it was by far the most expensive house in a very convenient neighborhood.

In the mid-country location of the ill-advised job transfer, we bought a 7000 square foot house from the original owners - it was McMansionish but very high quality. We paid $800, they had over $1.2M into it and replacement cost was probably $1.5M.

But it’s all location-dependent. Now on my own, I just contracted for a really nice but definitely spec house in the exurbs but walking distance to public transport and bars/restaurants, perfect for me, for $700K. I have no idea how the builder made money building it even taking into account that spec homes have lower costs to builders that’s custom homes do to owners. In any event the same house closer in would be $1.5-2M for the exact same house as a spec home, likely more to build as custom (though presumably if custom it would not have the builder-ish aspects that I’m always going to have to ignore, like weird fenestration on two elevations).