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Buying An Existing Home Versus Building A Home

Does buying an existing home or building a new one better fit your needs?

Holli McCray Home Marketing Group - Buying Versus Building

 

If you’re thinking about buying a home, then this question may have crossed your mind.  Before answering, make sure to consider the pros and cons of building a new home versus purchasing an existing to determine which one fits your needs and budget.  From up-front costs to resale, timeframes, and affordability, there are many factors to consider. 

 

BUILDING A NEW HOME

 

Primary Costs

In Knox County, the average cost for a new home was $327,202 with a price-per-square-foot of $129.  This is well above the national average.  Based on a recent report from the National Association of Home Builders, the average cost for a new home was $237,760 with a price-per-square-foot of $118. 

Building a new home will also cost you time.  Based on the size and floor plan of the home, construction can take anywhere from 4 to 12 months.  You may also encounter delays along the way that can push back your move-in date.  If your timeframe to move is strict, then building a home is likely not the best option for you. 

Hidden Costs

New construction buyers must also pay for:

  • The land to build on
  • Obtaining building permits
  • Excavation (especially if the land has not yet been developed)
  • Impact & construction loan fees
  • Overage costs related to changes in building materials and/or changes to finishes you make along the way

As a rule of thumb, you will pay more to build a home versus buying an existing one…

Maintenance

One of the primary benefits of building a home is that it is completely move-in ready on the day you move in.  Appliances, systems, and the roof will all be new and under warranty.  You should not have any significant costs or repairs for several years.  In Knox County, builders must provide a comprehensive 1-year warranty on the homes they sell.  This means that if you experience any issues with your home, the builder is required to address them. 

Value Appreciation & Availability

While every real estate market is different, newer homes tend to sell faster than older ones.  There are numerous reasons for this, but as a general rule of thumb, the newer the home, the fewer improvements or updates it needs.  Hence it is more desirable to home buyers.  

Due to the rising costs of materials and lower profit margins for builders, it is harder to find/build new homes at lower price points.  You also need to find land (or a lot) in an area or neighborhood that you want to live in.  In more urban or populated areas, this can be quite challenging.  The land you buy must also be an adequate size to fit the house you want to build.  You may also have neighborhood restrictions you must adhere to.  In some cases, the Homeowner’s Associations must approve your plans before construction can begin. 

 

BUYING AN EXISTING HOME

 

Upfront Costs

In 2018, the average sales price of an existing home in Knox County was $241,853 with a price-per-square-foot of $111.  You’ll notice that this much higher than the average price-per-square-foot of new homes at $129. 

Maintenance

Depending on the age and condition, there can be major replacements and many repairs required with older homes.  It is far more challenging to get a truly “move-in ready” home when you are buying an existing one.  

Value Appreciation & Availability

In general, it is easier to gauge the value of an existing home because there are more comparable homes that have recently sold.  Existing homeowners gain appreciation from an improving housing market, but also on certain improvements they make (i.e. replacing the roof, finishing the basement, updating the kitchen).

No matter what price point you’re buying in, you should have some existing home options to choose from.  Also, you likely won’t have to worry about adhering to neighborhood restrictions because the home already meets those guidelines.

 

WHAT’S THE VERDICT?

There are many pros and cons for both building a new home and buying an existing home. The right decision will depend on your budget, personal preferences, and timeframes for moving.

Existing home buyers are not only fortunate enough to avoid lengthy construction timeframes, but they also enjoy the advantage of having more control over when they move.  On the flip side, existing home buyers will likely have to settle on things that are not on their house wish list.  In general, they must also be okay with older systems and appliances that will need replacement sooner than in new construction homes.  Those who have very specific wants and needs should strongly consider building a home. 

Ready to purchase your own Knoxville area home?  HMG will be your guide through the process.  Check out the current homes for sale in Knoxville!  If you’re thinking about building a home, we encourage to check out our newest neighborhood called Lovell Cove that is located in Hardin Valley. 

Posted in: New Construction Knoxville TN Tagged: building a home advantages, buy or build a home, buying vs building a home, home buying tips, how do i buy a home, why build a home

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Holli McCray Home Marketing Group

4 hours ago

Holli McCray Home Marketing Group

On the First Friday of every month, artists throughout the Knoxville community encourage you to venture out to enjoy art, music, food and fun. Stroll, sip and shop throughout downtown at tonight's First Friday! (Perfect for Date Night!) 🎨🎼🍷🍺

View featured events, maps, and parking tips here: www.visitknoxville.com/knoxville-first-friday/

#FirstFriday #knoxville #downtown #art
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On the First Friday of every month, artists throughout the Knoxville community encourage you to venture out to enjoy art, music, food and fun. Stroll, sip and shop throughout downtown at tonights First Friday! (Perfect for Date Night!) 🎨🎼🍷🍺  View featured events, maps, and parking tips here: https://www.visitknoxville.com/knoxville-first-friday/  #firstfriday #knoxville #downtown #art
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Holli McCray Home Marketing Group is in Rutledge, Tennessee.

6 hours ago

Holli McCray Home Marketing Group

PRICE REDUCED TO $509,000
​
​Learn more about this listing: search.hollimccraygroup.com/listing/1062083
​
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PRICE REDUCED TO $509,000
​
​Learn more about this listing: https://search.hollimccraygroup.com/listing/1062083
​
​#rutledge
#hollimccrayhomemarketinggroup
#rutledgerealestate
#rutledgehomesforsale
#rutledgerealestatelistings
#knoxvilletn
#knoxville
#realestateagentsknoxville
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Holli McCray Home Marketing Group

19 hours ago

Holli McCray Home Marketing Group

Now is the time to buy in North Knoxville! Take a peek at these homes under $250k with recent price reductions: tinyurl.com/HMGKnoxvilleNKnoxUnder250kRedu.

Want to see one in person? Message us anytime!
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Learn More

Now is the time to buy in North Knoxville! Take a peek at these homes under $250k with recent price reductions: https://tinyurl.com/HMGKnoxvilleNKnoxUnder250kRedu.  Want to see one in person? Message us anytime!
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🏆Greater 𝓚𝓷𝓸𝔁𝓿𝓲𝓵𝓵𝓮'𝓼 Top Real Estate Team 🏠 | (833) 464-7653 | Holli McCray Home Marketing Group Keller Williams #knoxville #realestateagent

Instagram post 2192973918409811946_1543036673 Tonight is First Friday ArtWalk! From holiday shopping with local artists and listening to live music, to sipping and savoring local holiday treats, there's so much to do and see in downtown Knoxville. Bring the whole family or make it a date night! 🍺 🍷 🎵 🎨 ​
​📸 : @downtownknox
​#firstfriday #knoxville #downtown #artwalk #datenight #familyfun #knoxrocks #865life #downtownknoxville #knoxvillerealestate ​Holli McCray Home Marketing Group Keller Williams | (833) 464-7653
Instagram post 2191530938943493311_1543036673 🍪 Fresh baked cookies are one of our favorite ways to make a home feel warm and cozy. If you're selling your home, put a fresh batch on the kitchen counter before a showing or open house. ​
​#nationalcookieday #knoxville #realestate #winter #baking #cookies #knoxvillerealestate #realtors #homesellingtip #realestatetips #openhouse Holli McCray Home Marketing Group Keller Williams | (833) 464-7653
Instagram post 2191501012567836040_1543036673 This week we achieved a goal we’ve been working towards for many years. HMG surpassed the $100 million mark in real estate sold for 2019.  This was the result of A LOT of hard work and focus from the entire team and we couldn’t be more excited to share this.  We are also so #grateful to all of our current and past clients who allowed us the opportunity to help them move to the next chapter of their lives. ❤️❤️🏡🏡🙌🙌. #hollimccrayhomemarketinggroup #realestateagent #kwri #kellerwilliams #blessed #knoxville #knoxvilletn #hardwork #realtorlife #winning #success  Holli McCray Home Marketing Group Keller Williams (833) HMG-SOLD
Instagram post 2191058126839694912_1543036673 NEW LISTING!!!
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​ADORABLE! Located on a level lot, this comfortable ranch offers one-level living at it's best with a desirable split-bedroom floor plan. Highlights include a high cathedral ceiling in the spacious living room, a well-designed eat-in kitchen with an island that opens out onto the relaxing sunroom, a private formal master suite, high ceilings & extra storage space in the 2-car garage, and a new 3-ton Trane HVAC unit. Fully-encapsulated crawlspace. Fantastic location is only a few minutes from the parkway in Sevierville. Easy drive to Gatlinburg, Pigeon Forge, Wears Valley, and the Great Smoky Mountains National Park. MLS# 1101981
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​$230,000
​3 Bedrooms
​2 Bathrooms
​1,484 Sq Ft.
​
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#knoxrocks  Holli McCray Home Marketing Group Keller Williams | (833) 464-7653
Instagram post 2190937628143202736_1543036673 NEW LISTING!!!
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LIVE ON OVER 4 ACRES! Nestled in a private setting, this unrestricted gently rolling property includes a cozy ranch with loads of potential and a detached 2-car garage/workshop. Highlights include a large updated kitchen, a relaxing wood-burning fireplace in the spacious living room, a separate home office/den off of the formal dining area, an unfinished basement, and a fenced backyard. Great option as a primary residence or investment property. Convenient location with an easy commute to Downtown Knoxville, Pigeon Forge, and Sevierville! Less than an hour from the Great Smoky Mountains National Park! MLS# 1101978
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​$195,000
​3 Bedrooms
​1 Bathroom
​1,340 Sq Ft​
​
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#knoxrocks  Holli McCray Home Marketing Group Keller Williams | (833) 464-7653
Instagram post 2190898536047036743_1543036673 🏡💰On the blog: 4 Budget-Friendly Home Improvement Ideas to help boost the value and appeal of your home (even if you're not planning to sell)! Here's a highlight, but get the full scoop at the #linkinbio:
〰️
🔲Paint Trim & Baseboards - This small project can make a HUGE difference in the look of your home, giving it the appearance of a lighter and brighter space.  If you aren’t sure which color to choose, we generally recommend using a bright white with most homes. The best part?  All it takes is some time, a few rolls of painter’s tape and a gallon or two of semi-gloss paint!
〰️
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Holli McCray Home Marketing Group Keller Williams | (833) 464-7653
Instagram post 2190738223741904539_1543036673 NEW LISTING!!!
​
​BURSTING WITH CHARM! This updated ranch features an adorable one-level floor plan with a relaxing all-season sunroom. Highlights include the original hardwood flooring throughout the main living areas, updated appliances & ample cabinet space in the eat-in kitchen, extra storage in the large laundry room, a new hot tub in the sunroom, additional storage off of the attached carport, and a quiet fenced backyard. New roof in 2017. Located in an up-and-coming area of North Knoxville that is within minutes of many great local bars and restaurants. Easy commute to downtown Knoxville and the University of Tennessee!  MLS# 1101982
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​$165,000
​3 Bedrooms
​1.5 Bathrooms
​1,199 Sq Ft.
​
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#knoxrocks  Holli McCray Home Marketing Group Keller Williams | (833) 464-7653
Instagram post 2190211703709390550_1543036673 NEW LISTING!!! ​
​CHARMING TOWNHOUSE IN POWELL! This well-maintained 2-story home offers a fantastic floor plan with a main level master suite and open living area. Highlights include an updated kitchen with gorgeous cabinetry & breakfast bar, high cathedral ceilings and a cozy fireplace (gas) in the open great room, fresh paint throughout, a lofted sitting area upstairs. Relax on the back patio that overlooks the fenced backyard with a storage shed. Community walking/running trail and playground. Located just minutes from Powell Schools, North Knoxville Medical Center, I-75, and tons of great local restaurants. Easy commute to Clinton and Oak Ridge! MLS# 1101980
​
​$215,000
​3 Bedrooms
​2.5 Bathrooms
​2,000 Sq Ft
​
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© 2019 · Holli McCray Home Marketing Group Keller Williams
Holli McCray Home Marketing Group Keller Williams
420 Bearden Road
Knoxville, TN 37919
Office: 833-464-7653
Fax: 865-291-0355
Firm # 264130
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