Fake News: "It’s Just as Affordable to Build as It Is to Buy"
Fake News: "It’s Just as Affordable to Build as It Is to Buy"
We hear it all the time.
"With the cost of home values today, it’s just as affordable to build a home!"
And every time, we sigh just a little.
Not because we don’t want people to build (trust me, we do), but because it’s simply not true. You cannot compare the cost of building a home to buying an existing one—they’re two completely different things.
It’s like saying, “Well, since used car prices have gone up, a brand-new car must be just as affordable.”
…That’s not how any of this works.
We get these calls every week, and I’m not here to break anyone’s heart—but I am here to let you down gently. Instead of jumping straight into a list of why building is more expensive (and why that makes sense), I want to tell you a quick story about something that happened to me at the nail salon the other day.
What I Learned at the Nail Salon
I was at the salon getting my wedding taken off because, frankly, I need to be able to text and type at full speed again.
As I sat there, I casually mentioned to my nail tech, Tony, that we were getting ready to build our house. A woman getting a pedicure nearby perked up. “Oh! Where are you building? We just built a house!”
That’s all it took for the conversation to start rolling.
I told her we were building in Carleton, and naturally, she asked who our builder was. I proudly told her about Mark and our company, Landmark Building. Then, because I couldn’t help myself, I started asking her about her builder and experience.
She said they went with Blank Homes (we’ll refrain from using real names because that’s not really the point here). I asked why they chose that builder, and she responded, “Because we saw the signs, and they’re an all-in-one builder.”
I had never heard that term before, so I asked, “What does that mean? An ‘all-in-one’ builder?”
This also made me think—if they market themselves as an all-in-one builder, what exactly would be the alternative? So I naturally asked more questions because, even at Landmark, we have a slightly different approach to building. I was curious—what did all-in-one actually mean?
She explained that they handled everything—so, naturally, I assumed this meant they provided the lot, handled permits, and coordinated the entire process from start to finish.
Turns out… not exactly.
She still had to handle permitting, the driveway, the septic, the survey, and a handful of other things she didn’t expect to be responsible for.
And that’s when it hit me—do people really know what their builder is responsible for? More importantly, do they realize that not all builders handle projects the same way?
Now, I won’t bore you with exactly how we do things (for the sake of time), but if you’re curious about our approach, you can read more here. That way, I can get back to the story without droning on longer than necessary—because, trust me, I will if you let me.
So there I was, processing the fact that “all-in-one” apparently didn’t mean what I thought it did, when she dropped the kicker:
"The lot didn’t perk."
Boom. Brace for financial impact.
Her eyes widened as she told me about the $30K+ surprise cost of installing an engineered septic system. I could tell it completely blindsided her.
And that’s the thing—these “hidden” costs of building a home are often glossed over when people are deciding between building and buying.
Why Building Costs More Than Buying—And What to Expect
When you buy an existing home, you’re paying for something already there.
When you build? You’re paying to create everything from scratch—including things most people don’t even realize they’ll need to budget for.
1. Lot Prep & Clearing
An existing home? The land is ready.
A raw lot? It might need tree removal, leveling, or truckloads of dirt before a foundation can even be poured. And dirt? Not cheap. Neither is tree removal.
If you’re looking at a lot to build on, make sure your builder can assess the land and tell you what kind of prep will be required. These costs aren’t usually part of the “price per square foot” you’re quoted for building the home—they’re extra.
2. Septic & Sewer Connections
Flush the toilet in an existing home? No big deal.
Build new? You have to create that system.
If city sewer isn’t available, you’ll need a septic system, which can run anywhere from $10K-$40K—or more if the lot doesn’t perk (as our new friend at the salon learned).
3. Water Access
Nobody buys a home without water—it’s just there.
In a new build? Not so much.
A well needs to be drilled or, if city water is available, there might be a hefty tap-in fee. Our lot alone had a $30K assessment just to bring city water to the property.
Know your options before you commit to a lot.
4. Power & Gas Hookups
Running utilities to a new build can cost thousands depending on how far you are from existing connections.
One couple we worked with had to pay for trenching and new power lines just to get electricity to their home—something they hadn’t accounted for.
5. Hidden Costs People Forget
Besides land prep and utilities, don’t forget about:
Permit costs
Surveys
Financing costs
Somewhere to live while you build
That last one is big.
A lot of people underestimate the time it takes to build and forget that they’ll be paying for housing and their construction loan at the same time.
For example, my friend at the salon was quoted 6-8 months for her build. It actually took almost double that.
Knowing your builder’s workload, timeline, and process beforehand can make or break the experience.
Building Isn’t About Saving Money—It’s About Creating Something That’s Yours
At this point, I know it sounds like I’m trying to talk you out of building. I’m not. But I am trying to set the right expectations.
And that’s the one thing my new friend at the salon made me realize.
She loved her home and was still thrilled she did it—but she wished she had been better prepared for the reality of the process.
Because building a home is stressful. There are delays, hidden costs, and a million decisions to make.
But if you go into it knowing what’s coming, you can actually enjoy the process more.
Final Thought: Know What You’re Signing Up For
Whether you go with an “all-in-one” builder or a fully custom build, knowing what’s actually included (and what’s not) matters.
So if you’re considering building, don’t do it because someone told you it’s “just as affordable.”
Do it because you want to.
Do it because you have a vision for your home that an existing one can’t match.
And most importantly—do it with a builder you trust.
- Cassie
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