Should You Build or Buy a Home in Spokane WA?

One of the most crucial decisions of your life is probably choosing between building or buying a home. And in Spokane, the choice can be complex due to varying costs, housing demand, and regional factors. Whether you're considering a custom-built home or buying an existing property, understanding the costs involved will help guide your decision. This article compares the key factors to consider when building versus buying a home in Spokane.

1. Factors Influencing the Cost of Buying a Home in Spokane 

When considering buying a home in Spokane, there are several factors that influence the price.

Market Demand and Location

Spokane’s housing market can be quite varied. Cities like Seattle and Bellevue have higher demand and consequently custom home builders demand higher home prices. 

Urban areas tend to come with premium costs for both homes and land, while rural areas or smaller towns might offer more affordable options. The location of the home plays a key role, with coastal properties or homes in desirable school districts often commanding a higher price.

Home Size and Condition

The size of the home will directly affect the price. Larger homes or homes with modern upgrades and finishes will cost more than smaller, older homes. If you’re considering buying an older home, you’ll also need to factor in potential renovation costs, which could add a significant amount to your budget.

Closing Costs and Property Taxes

In addition to the purchase price, you’ll also need to account for closing costs, which can include appraisal fees, title insurance, and loan origination fees. Spokane state also has property taxes, which can vary depending on the county. While these costs may seem small compared to the home’s price, they can add up.

2. Factors Influencing the Cost of Building a Home in Spokane 

Building a home offers more flexibility but also comes with its own set of financial challenges. Here are some key factors to consider:

Land Costs

One of the biggest expenses in building a home is the cost of land. Land prices vary widely in Spokane based on location. Urban areas and desirable suburban areas tend to have higher land prices. However, purchasing land in rural areas or outlying regions can be more affordable. It's important to research local land costs, as they can make up a large portion of your total building budget.

Construction Costs

Once you've secured land, the next major cost is construction. This includes labor, materials, and permits. In Spokane, the custom home builders can charge you from $150 to $400+ per square foot, depending on the complexity of your design, quality of materials, and labor costs. 

Custom homes tend to have higher construction costs due to the personalized design and premium materials involved.

Time and Delays

Building a custom home doesn’t happen overnight. Delays are common, whether due to weather, supply chain issues, or labor shortages. These delays can add to the overall cost of construction, both in terms of time and additional expenses.

Customization

One of the main attractions of building a home is the ability to personalize every detail, but customization often comes with a price. From unique floor plans to custom finishes, the more tailored your home is, the higher the cost is likely to be.

3. Comparing Costs of Buying vs. Building 

Upfront vs. Long-Term Costs

When you buy a home, the upfront costs are generally more predictable. You pay for the home’s market price, and the closing costs are fixed. However, buying a pre-existing home can sometimes involve unforeseen maintenance or renovation costs. 

In contrast, building a home has higher initial costs—land, construction, and materials—but can offer long-term savings in energy efficiency and maintenance.

Appreciation Potential

Both options offer opportunities for appreciation, but a custom home built with the latest materials and energy-saving features is more likely to increase in value over time. On the other hand, buying an older home might involve renovations to maintain or improve its value.

Financial Flexibility

When hiring a custom home builder for building, the financial flexibility is less compared to buying an existing home. Buying typically offers a fixed mortgage, while building often involves multiple stages of financing as the project progresses.

4. Benefits of Buying a Home in Spokane 

Time Efficiency

Buying a home offers a significant advantage when it comes to time. Once you’ve secured financing, the process of moving into a home can take just weeks or a few months, making it ideal for buyers who need to move quickly.

Predictability

The costs associated with buying a home are more predictable. The price is agreed upon upfront, and while there may be some closing costs or minor repairs, you won’t face unexpected expenses related to construction delays or cost overruns.

Established Neighborhoods

When you buy a home, you're often investing in a well-established neighborhood with schools, amenities, and community services already in place. If you're buying in a city or suburban area, you'll have access to services like public transportation and nearby shopping.

5. Benefits of Building a Home in Spokane 

Customization

The most obvious benefit of building a home is the ability to create a space that fits your exact needs. From the floor plan to the materials used, you have control over every detail. This is ideal for homeowners with specific needs or desires that can't be met in an existing home.

Energy Efficiency

New homes tend to be more energy-efficient, with the latest insulation, windows, and energy-saving appliances. By building, you can incorporate green features such as solar panels or geothermal systems that can reduce your long-term utility costs.

Personalized Lifestyle

Building a home with a custom home builder Spokane allows you to create a space that aligns with your lifestyle, whether that means incorporating a home office, media room, or larger kitchen. This level of personalization is impossible when buying a pre-existing home.

Conclusion

Both building and buying a home in Spokane come with their own set of pros and cons. Buying a home is faster, more predictable, and often involves fewer upfront costs, while building offers more control over the design and future energy efficiency. 

By weighing your priorities and financial situation, you can make an informed decision. If you're leaning toward building a custom home, Diamond Homes’ custom home builders are here to help you navigate the process and bring your dream home to life.