If you’re considering property ownership in Texas, you’ll need to understand and weigh the costs involved in buying a house or building from scratch. With different factors like land price, construction expenses, and local market prices to consider, making the right choice can sometimes be difficult.
Our guide breaks down the different costs you’ll encounter when you buy or build a house in Texas. This information is designed to help you make informed decisions that fit your long-term property goals and budget. Keep reading to learn more.
When deciding whether to build or buy a house, it's important you consider both the immediate and long-term costs involved. In 2023, the average purchase price of a newly constructed home in Texas was around $325,000. However, this price can change significantly depending on many factors, particularly the construction costs. The National Association of Home Builders found that 60% of the average home sale consisted of construction costs. Other factors that can affect home prices include:
In the same year, the average cost of building a new home in Texas was around $325,000 which was significantly below the national average of $439,170. Ultimately, the cheaper option for you comes down to your timeline, budget, and personal preferences.
Before you buy or build a new house, you’ll need to carefully plan and create a solid budget. The total cost of constructing a new home depends on factors like the home size, location, design complexity, and the building materials used. On average, a basic Texas home costs between $140 to $220 per square foot, while custom-built homes can cost between $250 and $300 per square foot.
Your construction budget ought to cover essential expenses like:
Building a new home doesn’t have to feel overwhelming. You can consult an experienced land developer like Vista Ridge Acres to help you find the right land and design an accurate estimate of your building costs.
Buying an existing home in Texas is a popular choice for many homebuyers. The process is typically faster as you don’t have to deal with permits and construction delays. However, you may have to sacrifice your desired layout, design, and condition if you’re purchasing an already-built home. Here’s a brief overview of the pros and cons of buying an already-built home:
Building a home in Texas allows you to design a space that suits your needs. From choosing the floor plan to selecting every fixture, new construction gives you total control over the process. However, this option has longer timelines, may have higher costs, and is prone to potential project management challenges. Below are some advantages and disadvantages of building a home from scratch:
Whether you decide to buy or build a home in Texas, understanding the pros and cons of each choice can help you make the right decision. While neither option is absolutely better than the other, the best decision heavily depends on your preferences, budget, and expectations.
You don’t need a real estate agent to buy land in Texas. At Vista Ridge Acres, we’re here to guide you every step of the way and ensure you find a property that fits your budget and vision. We also offer owner financing options to make land ownership accessible to individuals with bad or no credit. Our team is here to help you make your dream home in Texas a reality.