Dreaming of moving to Western North Carolina? You may be wondering whether to build or buy your new home. When it comes to building vs. buying a home, each option comes with pros and cons which are important to consider before you make your decision. Keep reading to learn more about building a home vs. buying in Western NC.
The Case for Building a Custom Home in Western North Carolina
Building a home has obvious appeal for those who want to create their dream home from scratch. While building takes longer and is often more expensive, it can be worth it for the plentiful customization options.
The Benefits of Building Your Own Home in WNC
- It’s made for you. When you choose to build, all of the details you envision for your home can become reality. The layout can be designed to fit your family’s current needs (and even future needs, such as a nursery or an in-law suite).
- Fewer compromises. You’ll get to pick out finishes, materials, features, and appliances, a luxury you won’t have if you choose to buy a home instead. You’ll have control over everything from the countertops to the closet space, and everything included in the home will be modern and up-to-date.
- As green as you like. While there are many green-built homes and sustainable communities in Asheville, building your own green home can be uniquely rewarding. You’ll have the opportunity to choose energy-efficient materials, appliances, and even renewable power sources for your home.
- Choose your own land. Sure, buying land is an additional expense that comes on top of building the home, but it also gives you the chance to pick out the perfect plot for your needs. You’ll get to see your land transform from an empty lot to the property of your dreams.
NC Tax Benefits of Building a Home
Building a home can also come with tax benefits in a few circumstances. For instance, if you install renewable energy sources in your new home or on your property (such as solar panels, geothermal heat pumps, or wind turbines), you may be eligible for the Residential Clean Energy Credit. Of course, this could also apply if you make certain green improvements to an existing home.
If the home you’re building is your first home, you may be eligible for the NC Home Advantage Tax Credit. This credit is based on the interest you pay on your home, with 30 percent offered for existing homes and 50 percent offered for new homes (up to a $2,000 limit). If approved by the North Carolina Housing Finance Agency, you’ll receive a Mortgage Credit Certificate that can be applied toward your federal taxes. This tax credit is also available for military veterans.
Challenges of Building a WNC Custom Home
- Building takes time. As you might expect, building a home requires a longer timeline than buying an existing one would. According to the U.S. Census Bureau’s Survey of Construction, contractor-built homes took an average of 10.7 months to complete in 2023. Since this is an average, it’s wise to also factor in potential delays that could cause the build to take longer. Overall, if you need to move quickly, building a home isn’t the best choice (unless you have a temporary place to live during construction).
Unforeseen costs. Costs can pile up during construction, especially if challenges arise that require the build timeline to be extended. It’s wise to go into the construction with wiggle room in your budget. However, some developer-builders will quote an exact price on a new home, and you can sign a contract with the full cost known up front.
Unforeseen costs. Costs can pile up during construction, especially if challenges arise that require the build timeline to be extended. It’s wise to go into the construction with wiggle room in your budget. However, some developer-builders will quote an exact price on a new home, and you can sign a contract with the full cost known up front.- Land development hurdles. Getting your land ready for construction is a challenge in itself. As Western North Carolina is a mountainous area, some valley lots are generally flat, but you’re likely to end up building on a lot that is at least sloped, if not steep and rugged. If you want a home with gorgeous views of the Blue Ridge Mountains, the best spot may be a plot on a mountain that will need to be cleared and leveled.
- Finding the right team. With your money and your family’s future home on the line, it’s essential to find the right team of local builders for the job. Vetting and interviewing contractors will help you select a company you can trust. Skipping this step can leave you with a crew that might cut corners, overcharge you, and leave you with a home that will need extensive repairs down the road.
The Case for Buying a Home in Western North Carolina
In contrast, buying a home comes with many benefits, especially when it comes to convenience. If you’re looking to move quickly and don’t feel the need to customize your new home from the ground up, buying is an ideal choice for you.
Benefits of Buying a Home in the Asheville Area
- Shorter timeline. While this varies from situation to situation, you can expect to spend anywhere from a few weeks to a few months shopping for a new home. In comparison to the time it takes to build a home, the buying timeline is quite a bit shorter, making this option optimal for those who need to move quickly for work, school, or family obligations.
- Established neighborhoods. Buying a home gives you the opportunity to live in a well-established neighborhood with mature landscaping and tall trees. Building new usually means you’ll need to plant new landscaping, which will take time to mature.
- Historic charm. In the same vein, buying gives you the chance to live in an historic home with roots in Asheville’s storied past. You’ll find homes in neighborhoods like Montford and Kenilworth that were built as early as the 1910s. These homes are filled with charm, containing authentic features and finishes that you simply won’t find in newer houses.
- Predictable costs. Finally, it’s easier to predict costs when buying a home than it is when building one. From lender fees to closing costs, there are a variety of fees you can expect when buying, but with some preparation and research, you can be prepared to handle these costs without stress.
NC Tax Benefits of Buying a Home
The tax benefits mentioned earlier for first-time homeowners are available for those buying an existing house. There’s also an NC Home Advantage Mortgage available for first-time buyers, in addition to down payment assistance. According to Lending Tree, this mortgage is completely forgiven if you live in the home for 15 years.
Tax benefits are also available to owners of historic homes who seek to rehabilitate and preserve their property. The State Historic Preservation Office offers a 15 percent tax credit for qualified rehabilitation of owner-occupied homes. To qualify, the home must be on the National Register of Historic Places or a contributing part of a National Register Historic District, among other requirements.
Challenges of Buying a Home in WNC
- Less customization. Buying a home gives you far less customization options as opposed to building. While you can change your home’s appearance and even tear down walls and build onto the existing structure, you won’t have the ability to personalize your home’s floorplan and features from the ground up.
- Surprise issues. Surprise issues, such as a leaky basement or roof, can come up when you buy a home. These problems become more likely the older the home is, unless it has undergone recent repairs or renovations. This is why we always recommend home inspections for existing and even new homes.
- Aging Systems. New homes typically have a 1-year builder’s warranty. Existing homes may have older HVAC systems, appliances, and roofs, so it’s wise to budget to replace systems that are aging. To mitigate this, third-party home warranties are available for existing homes.
Comparing the Costs: Is it financially better to build or buy a home in Western NC?
With all of this in mind, let’s dive into the financials. Which makes more sense for your budget: buying or building? Here are the facts.
Cost of Building a Custom Home in WNC
Western NC is generally a more expensive area to build than in other areas in the Southeast. Labor shortages, steep slope and stormwater requirements, and lack of developable land have driven construction costs up. The price per square foot will depend on many factors, including lot topography, neighborhood building requirements, and the level of upgrades in your home.
Cost of Buying a Home in Western North Carolina
Here is the current average cost to buy a home in the Asheville area.
The Conclusion on Building a Home vs Buying
All in all, the best choice between buying or building a home comes down to your budget, your needs, and your dreams for your next property. As the Asheville area is a highly desirable place to live, the cost difference between buying and building is less extreme than it is in other places. However, in some areas of Western North Carolina, you’ll definitely save money by buying rather than building. But for a home that’s shaped to match your personality perfectly, buying land and building is the way to go.
If you still aren’t sure which option to choose, reach out to our team. We’ll be happy to tell you more about the pros and cons and show you our current listings, whether you’re more interested in land for sale or homes for sale in Western North Carolina.
