February 26, 2024

Houston Real Estate Market: To Build or To Buy?

4 min read
Houston Real Estate Market

While some people prefer to buy their dream home, others choose to build it from scratch. Both options have their advantages, but which one is right for you?

How much does it cost to build vs. buy a home?

With the cost of housing in Houston steadily increasing, many new residents choose to custom-build their home. The latest report from the National Association of Home Builders (NAHB) states that construction accounts for only 60% of a home’s sale price. The lot makes up around 18% of the price, while expenses such as overhead, marketing costs, financing costs, and agent’s fees compose the rest. This means that with the right planning and budgeting, building your home from the ground up can potentially give you some cost savings.


A custom built home also offers the following benefits:


The main benefit of custom building your home is that you have control over every aspect of the construction. Experienced custom home builders in Houston can provide all the professional help you need – from designing the house to landscaping – but you can choose the location, size, layout, design, materials, features, and finishes. What’s more, you can incorporate any special or unique elements that you want, be it a fancy wine cellar or a flexible den.

No renovation hassles

Another benefit of custom building is that you can avoid the hassles and costs of renovating an existing home. Renovating a home can be a stressful and time-consuming process that involves dealing with contractors, permits, codes, and unexpected issues. It can also be difficult to achieve the exact results that you want, especially if the home has structural or functional limitations. By hiring custom home builders, you can skip the renovation process and build a new home from scratch that meets your expectations and standards.

Financial control

Constructing a home from the ground up can also give you better control over your finances. You can set a realistic budget that fits your financial situation and goals, and monitor and manage the costs of construction and design throughout the process. Additionally, you can make informed decisions on where to save and where to splurge, and avoid any hidden or unnecessary fees.

Moreover, custom home builders have connections who can help you find the best deals and discounts on materials and services. In short, you can get the best value for your money and stay within your budget.

Increasing the value and appeal of your home

With a unique design, a custom home can stand out on the market, and increase in value and appeal over time. You can incorporate the latest trends and technologies, making the home more comfortable, efficient, and sustainable. This helps increase your home’s resale value and attract more buyers should you decide to sell it in the future.


Buying a prebuilt house can be convenient and affordable, but it also has some drawbacks. Let’s explore the pros and cons of buying a pre-existing property:


Negotiable prices. One of the advantages of buying a prebuilt house is that you may be able to negotiate the price with the seller, especially if they are in a hurry to sell or if the house has been on the market for a long time.

Move-in ready. You can move in as soon as the deal is closed. You don’t have to wait for the construction to be completed, which may take months or even years. You also don’t have to worry about delays, cancellations, or changes in the plan. You can enjoy your new home right away and start decorating and furnishing it to your liking.

Less stress overall. Buying a prebuilt house can also be less stressful than building a custom home. You don’t have to make hundreds of decisions, such as choosing the materials, paint colors, finishes, and so on. Plus, you’ll have the seller and the agent to guide you through the process.


Limited control. You have less control over the layout and features of your home. You have to accept the house as is or make only minor modifications. After the sale, you may embark on major renovations, but this means spending more on top of the sale price.

Potential repairs. You may have to deal with potential repairs or replacements of older appliances and home systems.  Depending on the age and condition of the house, these can be costly and inconvenient, and may affect the performance and efficiency of your home.

Budget trade-offs. You might have to compromise on some aspects of your home, such as the size, location, style, or quality. For example, you may have to settle for a smaller house, a less desirable neighborhood, a dated style, or a lower quality of construction. You may also have to sacrifice some features or amenities that you want.

If building your home is the right choice for you, finding the right custom home builders is crucial. With the right team, you can enjoy the process of creating your ultimate dream home and live in it for years to come.

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