Should You Buy Or Build Your Next Home?

house by Galadrielbg
house by Galadrielbg

Having experienced the house building process, I have learned a lot and wanted to share a few thoughts here in case you ever face the dilemma of building vs. buying. There is an Armenian saying that every man must “plant a tree, have a child, and build a house.” I think the last one is questionable in the literal sense (though in the saying it’s really about making a home for a family).

The Emotional Dimension: The project of building your home is unlike any other project. It is an emotional project directly hard wired to your self esteem. After all your house may be one of your largest assets. Your house is also most likely one of the key elements in your external and internal image. As if trying to make this even more emotional, building a house is about your ability to take on a large, expensive, and complicated challenge and seeing that through to completion. You might be trying to make a statement to your spouse, your in-laws, many others but most importantly to yourself.

The Business Dimension: At the same time, building involves many business relationships where trust, money, specifications, deadlines, and quality matter a lot. This project comes with numerous interdependencies between many parties such as the banker, the builder, the subcontractors, the family, the city, the designers, the lawyers and the suppliers. In addition to everything else that you do (work, home, school, activities, etc.), you must make quick and correct decisions daily and sometimes hourly for months. Large sums of money are handled in legal transactions. There is significant uncertainty in all aspects at all times.

Should you build? Success requires the ability to balance these two separate yet intertwined dimensions constantly which is extremely difficult. Furthermore, the benefits are a bit overrated given the massive investment. By investment, I mean the financial, emotional, but more importantly time investments required for a successful house building project. As a result, I believe building a house makes little sense for most people who are not in the residential construction business already. If you are seeking the knowledge or the experience that comes with building a house, why not build a house for someone else or manage a few smaller house remodeling projects instead? Buying a house is generally also much more economical.

Should you buy? I think so. In good markets, you may be able to get a great deal on a house of your dreams. The buying process is far simpler with greater odds on your side. Given the thousands of homes for sale, chances are that you can find one that’s very close to your needs and need not build a house to satisfy the family. Also, given today’s dynamic lifestyles, you can sell what you bought easier than what you have built (due to amount of hard work invested) even though in the case of buying emotional attachment also takes place. If maintenance is your main concern, why not buy a recently built house.

Looking back at all of the details that we had to consider, all of the work that we put into the process, and all of the time that we invested, I feel the reasons to build hardly justify the price you pay.

2 Comments

  1. My brother and sil are in the middle of building a stawbale house. And I can certainly attest to everything you’ve written based on my observations of their journey. The emotional and business dimensions you wrote about are bang on! So true, yet they’re never named when people talk casually or even seriously about building a house. It’s a huge, huge undertaking that affects every part of you … it’s not just the physical experience of the actual building.

  2. Thanks for visiting. After rereading the article I realized that my words are just not enough to describe the magnitude of what this project entailed for me personally. The result is very nice but was it worth it? After thinking about this for three years, I feel it was not. We often get trapped in the idea that we “own” our houses. The fact is we lease what we “own” for the duration of our stay. Some of the houses in our area are over a hundred years old and I’m sure at least ten families have thought that they “owned” the same home in the past. Thanks again!

Leave a Reply

%d bloggers like this: