Building vs buying a house in 2019: What are the costs (with pros and cons)


– In this video we talk about the pros and cons of buying vs building a house in
2019. That’s starting right now. – Welcome to Homebuyer’s School, brought to you by Brookfield Residential. – Hi everyone, Karl here and welcome to
another Homebuyer’s School video, a channel where you get the latest
strategies tactics and tips from home buying experts. And remember if this is
your first time on this channel and you and you wanna get the latest from the
experts, hit the subscription button below hit the little notification bell so you don’t
miss anything. So today I’m joined by Jessica McKnabb, area manager with
Brookfield Residential, and today we’re gonna talk about cost of buying vs
building a home in 2019. So Jessica, I think how we wanna answer
this question is, can we look at the pro and cons of building, the pros and cons of
buying, and then maybe have a discussion about that. – For sure. – So let’s go, let’s start with pros and cons
of building a home. So let’s start with the pros. – For sure. So the pros of building your
own home is you get to go through with your area manager or sales rep and you get to actually choose all your finishes, you get to choose your building timeline, and you actually get to walk through your home and see it progress as it’s built—becomes your future home. The cons may be are you might be need to get into a home right away. So you don’t have the time to actually wait. And another con might be that you have to finish your landscaping on your own or your decking on your own
in the future. So there could be a lot of cost associated after the fact, but you can also have that included with the builder. – So why would you have to finish your
deck or landscaping on your own if you’re building your own home? – So it could be a preference. Sometimes
with a builder you are looking to build your own home, and you’ve got your
budget in mind—let’s say it’s $300,000 and you want to pick all your fixtures and
the interior upgrades are more important, there may not be enough in your budget
to come up with the cost after the fact for your deck and landscaping, so you
might wanna do it in the future or when it’s spring or summer you might be able
to get the landscaping at a cheaper discounted rate from the supplier. – Now is it more expensive to build a
home, like that would be one conception right? Is it a misconception or is it true
that it would be actually more expensive to build than to buy? – That is actually a good question. It’s a
big misconception. So if you are thinking to buy a home, you’re thinking “do I buy
resale or do I buy new?” So if you’re going to buy a new home, it’s actually going to
be what the builder says it is at cost based on the land price, based on the
home price alone. Whereas if you’re buying a resale home, it’s what the actual
seller wants to sell if to your for. So they could have it listed at 350, you
could have the same home that is new listed at 350, but it multiple offers come
in on the resale home, you might end up paying more. – If you wanna know more about the home
construction process, watch our video above or in the description below. So
Jessica, let’s look at buying a home. What are the pros and cons of buying a
home vs building? – So the pros of buying a home is maybe you’re looking for a quick possession. So if you’re looking, you have a lease that’s expiring, you’re renting now you’re going to just be buying a resale home that home will be finished for you and you can take possession of it within 30 days. And perhaps all of the landscaping and decking will be completed for you and the fencing. So that could be a pro of that. And then did you say—ask for a con of buying? So you might not have everything in your home completed to your liking. So maybe the cabinet colour isn’t to your liking, or the flooring colour.
So it could just be a matter of the upgrades inside your home. – How long does it normally take to
actually build a home? – That’s a good question. So on average
it can run you 4 to 6 months to actually build the home. So what we would
actually quote somebody is going to be 6 to 8 months. This is because there’s
building permits that we have to obtain. Sometimes there are spec home that we
already have in the process that have their building permits, so it might not take
as long. But generally speaking it can take 3 to 4 months to build a house,
or 6 to 8 months. – How come you need to get a permit
building building a home? – So the City actually has to approve
what’s going on that piece of land before we can go ahead with the building. – Oh okay. So that—so for example I guess
the builder doesn’t have the permit to build just any type of homes before the
home is actually built, right? So they just—is it just because they own the land
and then they have to apply? And how long does that permit process take? – So typically, communities have certain
zones. There will be different zoning regulations for each of these
communities. So some zoning mean that you have to have a single family home in
that lot, and you need to have a certain architectural finish. So we have to apply
for a building permit. It can take 1 to 3 month to wait for this permit come back. – Is that part of the whole timeline
of building a home? – It could be. – So that 3 months could be added to—so
is it like 3 months on top of the 9 months, or is it 3 months included into the
9 months? – So usually when people are coming in to
visit us and they’re looking at how long is it going to take to build, we will quote in
that permitting timeline. Just to give an accurate timeline for moving. – So do you have anything else to add in
terms of building vs buying a home in 2019? – Nope. I think that’s everything. – So the question of the day I have for you
is, did you build or buy your home, why and how was the experience? And remember if you enjoyed this video
or found it helpful, hit the thumbs up button, remember to comment, and make
sure to subscribe. Thank you and we’ll catch you next time. That’s another edition of Homebuyer’s School. Tune in next time for more expert tips and tricks, and visit homebuyersschool.ca to bring you one step closer to finding your dream home. As with everything, it would be great if you like and share our videos. Also, please let us know if you have any home buying questions you want us to answer.

55 comments on “Building vs buying a house in 2019: What are the costs (with pros and cons)

  1. what about if i have my own land outside the city with no restrictions? would it be cheaper to build a custom home?

  2. When I purchased my home I recieved a mortgage and a second loan with balloon rate and I want to sell it right out just want to get a few thousand over the loans. Can I get out of it?

  3. I watched 3 minutes of this video and turned it off. You might have to do your own landscaping or sales prices are negotiated. This is meaningless. Any idiot knows prices are negotiated.
     You want to know the average square foot cost of buying vs building in a particular area.
    This data is somewhere. I'd like to know where to get it. That is the number that matters; Sq FT cost building vs buying.

  4. I Think another factor to consider, some of us are homebuilders ourself, this will certainly reduce the cost. If we can hang rock and build the house, do the windows, siding, everything but HVAC, Electrical and shingles, this would be interesting to know on the pricing . Would you have any ideas?

  5. There's always renovating that can be done to a house you already bought vs taking even more time building your own. But that's in my opinion.

  6. To be honest guy if you are handy u don't need anybody go to City get permit and higher contracter they way u love ur dream house . Builders are lier 99% of them

  7. Maybe I Clearly missed it But she never answered the Question you asked and the reason i clicked on the video. She starts talking about reselling….

  8. Isn't it super expensive to pay for an internet line to your house that you built? Someone mentioned it being over $100,000. Not sure how true this is.

  9. Being in the landscape industry trying to get the project done on spring or summer will not be cheaper. Doing it in “off” season depending on climate will be much cheaper because the the landscaper you chose won’t be as busy in the “off” or late season. It’s similar to off peak electric. Better price when less people are asking.

  10. It's not cheaper to build your own home…..cost of the land, clearing the land, prep of the land (foundation, septic, wells, etc) is tens of thousands of dollars. Most builders price this into your build but they almost always find land for way cheaper than what you will. Now if you have the means of eating those costs upfront with cash, then you can put that into your mortgage and buy a bigger house so to speak. Not to mention, most banks require 10% down in order to get a construction loan so with a $300,000 house, you better have 30k ready to go…

  11. WTF !!!! WHY ARE YOU GUYS SUBSCRIBING TO FALSE NEWS HERE…. LOOK AT HER AND HIM….DO THEY HAVE THE EXPERIENCE TO TELL YOU ABOUT CRAP…….Let me help you people …each state is different…ask your neighbors that built a home recently or ask a contractor / architect within your state.. These two knuckle heads are wrong !!!! UNSUBSCRIBE THUMBS DOWN !!!!

  12. I feel like this was not informative at all lol. I was looking for more information not if i would like the finishing of a home

  13. He asked if it’s cheaper to buy or build and she starts talking about buying a new home versus buying an older one. Never actually answered the question. Also, I feel like these two are the type of people that would call someone out to perform tasks as simple as changing a doorknob.

  14. I purchased a lot for $15,000 saved more money for 2 years. Build me a $40,000 house. 1500 square feet 3 bedroom 2 baths. I don't need a $300,000 house

  15. Well if u have a family carpenter he or she would be willing to help u out no problem some just like to help there family out I was taught bye the old carpenters that didn't cut corners

  16. Wow.. top secret info ahead.. pros of building a house= choose your finished material and your time lime cons= you have to build your deck.. fast forward pros/cons of buying existing home exact opposite!! What a waste of time to produce this video. Has absolutely zero value at all!

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