Building vs. Buying: Weighing the Pros and Cons

Whether you’ve been searching for the perfect existing home in St. Louis with no luck or you think now is the time to build your dream home, it makes sense to understand the differences between building vs. buying. What’s right for you and your family will really depend on the area where you want to live, your budget, your patience level, and whether you have a great realtor to guide you through the process. 

Just like a brand new car comes with assurance of no mechanical issues or past accidents the buyer isn’t aware of, a brand new home guarantees no surprises after moving in. But while there are definitely pluses to new construction, there are also disadvantages. Here are the pros and cons: 

You get what you want. When building a home, you get to pick a layout that suits your lifestyle. Perhaps you prefer an open floor plan, and one bedroom on the main floor while the other three are upstairs. You also get to choose cabinets, countertops, flooring, and paint colors. Instead of renovating an existing home to meet those preferences, you get to start from scratch. 

Less maintenance. Starting from scratch means brand new appliances, plumbing and HVAC systems, electrical work, roofing, and concrete. Knowing you won’t have to replace an older dishwasher just months down the road or deal with a leaky roof can bring great peace of mind on move-in day.  

Low energy bills. Many older homes weren’t sealed tightly, allowing conditioned air to seep out. They also may have old HVAC systems and windows, causing electric bills to soar. Today’s new construction homes are usually built with energy efficiency in mind. 

A strong sense of community. It’s not always easy to be the new guy in the neighborhood when everyone else has lived there for years. Since neighbors in new developments all move in around the same time, they’re more likely to form relationships. 

Costs are typically higher. The cost to build a home varies depending on the size, location, and quality of materials, but it’s generally more than the asking price of an existing home. According to Home Builders Digest, the average price range for building a custom home in St Louis is $90 to $130 per square foot for builder-grade construction materials, and from $122 to $280 per square foot for premium materials. However, that doesn’t always include the price for the lot. To give you an idea of the comparison between the cost of building vs. buying, the National Association of Home Builders reported that a new home in 2024 averaged $665,298, while the average cost to buy a similar existing home was about $510,300. 

It takes a long time. If you’re relocating to St. Louis, or if you’ve already sold your house and need to get into your next home quickly, building can be frustrating. New construction homes take up to a year or longer to complete, so it’s likely you will need to find a short-term rental or live with friends or family for several months or more. 

The process can be stressful. Moving in general is never easy, but there are a lot more moving parts to keep track of when building a home vs. buying. Picking out cabinets and flooring can be fun, but it can also be overwhelming. And you’re starting with a blank slate, so you’ll need everything from window treatments to landscaping. Of course, having an agent is a great resource to help you through these decisions and is really helpful in alleviating that stress. 

You’ll be living in a construction zone. Depending on how early your home goes into a new development, you could find yourself surrounded by hammering, sawing, and other noises that come with new construction. You may also have to wait for grass and trees to grow before you have a yard where the kids can play.  

While building a home to get exactly what you want is tempting, it isn’t always the best choice. Sometimes buying an existing home makes more sense. Here are the pros and cons of buying:

It’s generally more affordable. As reported in Money magazine, existing homes in Missouri are typically $155,000 cheaper than new construction homes. Unlike with new builds, most sellers of existing homes are willing to negotiate a lower price (depending on how many days the home has been on the market) or at least may agree to pay for closing costs. 

You can move in fairly quickly. Especially if you’re buying and selling at the same time, choosing an existing home can take some of the stress away from having to find a place to stay. With the right realtor, you can coordinate closing dates so you can move from one house straight into the other. 

You’re moving into an established neighborhood. If you’re drawn to the historic charm and character of older homes or simply love a shaded tree-lined street, you won’t find what you’re looking for in a brand new development. There’s also an advantage to having streets with sidewalks and walking paths vs. dusty roads that are common in a construction zone.

Inventory is limited. For many buyers, this is what sparks an interest in building. According to the Federal Reserve Bank of St. Louis (FRED), there are almost 1,000 fewer homes currently available in the St. Louis metropolitan area than last year at this time. Competition can be fierce, and being outbid can be frustrating. If you can’t find a home that fits your budget and preferences, and you’re running out of room in your current home or are tired of renting, it might make sense to look into building. 

Higher maintenance costs. Even if an existing home is only 10 years old, repairs will be needed sooner than they would for a new construction home. A home inspection report will tell you the condition of the home’s major systems – and a home warranty can protect you from needing to make repairs on appliances or major systems within the next year — but you will inevitably need to plan on maintenance expenses in the near future. 

You may need to look outside of your desired neighborhood. If the selection is scarce in the area where you want to live, finding an existing home may require searching outside of that city. Moving kids to a different school district can be tough, as can leaving close neighbors and friends of your own. Moving to a new town may also affect your commute time to work or the distance to visit family members.

While builders have their own sales teams to sell lots and guide buyers through the building process, they represent the builder’s best interests. A real estate agent represents the buyer’s best interest — which is really important when making one of the biggest investments of your life. 

A realtor can help during the building process by:

• Connecting you with lenders. Builders usually offer their own financing plans, but they aren’t always the most affordable route. Realtors have connections with financial institutions and can point you in the direction of a lender that might have a better rate. Select Properties, for example, works closely with Nations Lending|
  
  
• Negotiating upgrades. Right from the start, a realtor can ask the builder about swapping out garage doors, paint colors, or any other upgrades you prefer. They have lots of experience in this area, so chances are they will get a better price than if you were to ask on your own. 
  
  
• Reviewing contracts and spotting hidden costs. If you’ve never built before, it’s easy to get confused by legal verbiage or miss important details in a sales contract. A realtor can ensure you don’t end up paying for things you didn’t plan on. 
  
  
• Overseeing the final inspection. Again, the builder and his sales team are looking out for their best interest. Having someone on your team to demand a final inspection and ensure there are no defects before closing day can bring peace of mind.

BHHS agents have plenty of knowledge about existing homes as well as new developments and can help you choose the best option for you. We have new construction homes listed in Kirkwood, O’Fallon, St. Peters, Washington, Wentzville, and throughout the entire metro area in just about every price range. We can also show you any existing or new build you’d like to see in the area you desire. When you’re ready to discuss your next move with experts you can trust, contact Berkshire Hathaway HomeServices.