• CMG MORTGAGE, INC. NMLS #1820

Download Case Study: Buying vs. Building

  • March 16, 2017

 

One of the major decisions prospective home buyers face is whether to buy an existing home or build a new home. Buying and building each have advantages, and the decision to buy or build is largely dependent on the buyer’s timeframe and budget.

With the right team of real estate professionals, moving into an existing home can take as little as two months. Building a new home involves several extra steps including locating and buying the lot.

Moving into an existing home is usually the less expensive option. According to the National Association of Home Builders, as of February 2016 the median price of a new home in the United States was $301,400, while the median price of an existing home was $212,300. Other costs that accompany the purchase of a newly built home include the cost of the land, cost of builders, and even the cost of renting while the buyer waits for the new home to be built.

When building a new home the buyer is able to get the exact design that they want. Existing homes tend to be smaller and older than new homes. In 1979, the median size of a newly constructed home was 1645 square feet. In 2014, the median size of a new home was up to 2453 square feet. Approximately 2/3 of owner-occupied homes in the U.S. were built before 1980, with 40% built before 1970. Homes constructed after 2000 account for just 17% of the owner-occupied homes.

The decision to build a new home or buy an existing home depends on the circumstances.

 

Doug Luza
Branch Manager
NMLS # 311377
Branch NMLS # 1198991


Doug Luza

PHONE: (832) 575-2210
dluza@cmgfi.com

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© CMG Financial, All Rights Reserved. CMG Financial is a registered trade name of CMG Mortgage, Inc., NMLS ID #1820 in most, but not all states. CMG Mortgage, Inc. is an equal opportunity lender with corporate office located at 3160 Crow Canyon Road, Suite 400, San Ramon, CA 94583 888-264-4663. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act No. 4150025; AK #AK1820; AZ #0903132; Colorado regulated by the Division of Real Estate; Georgia Residential Mortgage Licensee #15438; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company #MC.0001160; Massachusetts Mortgage Lender License #MC1820 and Mortgage Broker License #MC1820; Mississippi Licensed Mortgage Company Licensed by the Mississippi Department of Banking and Consumer Finance; Licensed by the New Hampshire Banking Department; Licensed by the NJ Department of Banking and Insurance; Licensed Mortgage Banker – NYS Department of Financial Services; Ohio Mortgage Broker Act Mortgage Banker Exemption #MBMB.850204.000; Licensed by the Oregon Division of Financial Regulation #ML-3000; Rhode Island Licensed Lender #20142986LL; and Licensed by the Virginia State Corporation Commission #MC-5521. CMG Mortgage, Inc. is licensed in all 50 states and the District of Columbia. Offer of credit is subject to credit approval. For information about our company, please visit us at www.cmgfi.com. To verify our complete list of state licenses, please visit www.cmgfi.com/corporate/licensing and NMLS Consumer Access (www.nmlsconsumeraccess.org).