Is It Cheaper to Buy or Build a Home? The Financial & Practical Considerations of Both—Plus a Smarter Alternative

But what if neither option makes the most financial sense? What if there was a way to move into a home now, with just 2% down, while building equity immediately—without the delays of new construction or the stress of securing a traditional mortgage?

Before diving into this third, smarter alternative, let’s break down the true costs of buying vs building a home—and why Lease-to-Own (LTO) is emerging as an affordable and financially savvy path to homeownership.

The Financial Breakdown: Buying vs Building a Home

1. Buying a Home: The Upfront & Long-Term Costs

Buying a home is often the most convenient option, allowing for a faster move-in timeline. But financially, buyers need to prepare for:

• Higher upfront costs: Traditional loans require 3.5% to 20% down, plus closing costs (2-3%) and potential buyer’s agent commissions (another 2-3%).
• Interest-heavy mortgage payments: In the first 18 years of a 30-year mortgage, most of your payments go toward interest, not building wealth.
• Limited inventory: Finding the perfect home at the right price is increasingly difficult due to historically low housing inventory.

2. Building a Home: More Control, More Costly Delays

For those who dream of customization, building seems like the ideal option. But new construction comes with hidden costs and unpredictable delays, including:

• Higher overall costs: While building a home might seem “cheaper” on paper, many buyers underestimate the total expenses, including land, permits, utilities, and customization costs.
• Construction delays: Materials shortages, labor issues, and builder mistakes can push move-in dates back by months—or even years.
• Temporary housing costs: Many buyers end up paying rent or staying in Airbnbs while waiting for their home to be completed—costs that quickly add up.

Case Study: When New Construction Becomes a Nightmare

Our client, Mike, was dead set on building a home for himself and his aging parents. Relocating from Pennsylvania to Sarasota, FL, he trusted a well-known nationally recognized builder to deliver his home on time and up to standard.

Unfortunately, the reality was far from smooth.

• Months of delays plagued the project, including critical construction errors, like failing to properly install underground power lines.
• Just before move-in, Mike discovered the power lines had to be completely reinstalled, forcing the builder to tear up the ground and start over.
• Temporary housing costs skyrocketed—Mike was forced to pay thousands in Airbnbs to house himself, his parents, and his two dogs.

While the builder ultimately reimbursed Mike for some of his temporary housing, it didn’t compensate for the months of stress, financial burden, and uncertainty.

Mike’s takeaway? If he had opted for a Lease-to-Own home instead, he could have moved in right away, built equity immediately, and avoided unnecessary delays and financial setbacks.

While Mike’s experience highlights the unpredictability of new builds, it’s important to weigh all the factors before making a decision. For a deeper dive into the financial pros and cons of building versus buying, check out this guide from Redfin: Is it Cheaper to Buy or Build a House?

A Smarter, More Affordable Alternative: Lease-to-Own (LTO)

At Burson Home Advisors, we specialize in helping homebuyers navigate these challenges through innovative Lease-to-Own programs that eliminate many of the financial and logistical hurdles of both traditional buying and building.

Why Lease-to-Own Makes More Sense

✔️ Move in with just 2% down—A fraction of the upfront cost required for a mortgage or new construction.

✔️ Start building equity from Day One—Unlike a mortgage (where most payments go to interest for 18+ years), LTO ensures you build real wealth immediately.

✔️ No closing costs, buyer’s agent commission, or Private Mortgage Insurance—Saving you thousands upfront.

✔️ Stable, predictable payments—Unlike rent or fluctuating mortgage rates, our programs ensure fixed, lower-than-mortgage monthly payments that remain consistent.

✔️ Skip mortgage hurdles—No immediate bank financing required, making it ideal for first-time buyers, self-employed professionals, and relocating homeowners.

✔️ Flexibility—Decide when (or if) to buy, cash out your earned equity, or transition to another home.

📞 Let’s talk about how lease-to-own can work for you—schedule a free consultation today!

Why Homebuyers Are Choosing Lease-to-Own Over Traditional Financing

Still not sure how Lease-to-Own compares? Here’s a side-by-side breakdown of how LTO stacks up against buying and building.

Which Homeownership Path is Right for You?

• If you have time, money, and patience, building a home can be a great way to customize your space—but be prepared for delays and unexpected expenses.
• If you prefer certainty, lower upfront costs, and immediate equity, buying an existing home may be a better fit.
• If you want a financially savvy, lower-cost alternative that lets you build wealth faster, Lease-to-Own may be your smartest option.

At Burson Home Advisors, we help homebuyers skip the stress and move into homeownership with a strategic approach that makes financial sense.

Want to Learn More? Let’s Talk.

#LeaseToOwn #BuildOrBuy #HomeBuyingTips #SmartHomeownership #HomeAffordability #FinanciallySavvy #RealEstateInvesting #WealthBuilding #HomeEquity #FirstTimeBuyer