Build or Buy a Home in Georgia? Save Big With This Guide

In Georgia, the average cost to build a home, not including land, is about $480,000. In contrast, the median sale price for homes is roughly $324,674.

This raises an important question: should you build or buy? Building a home allows for customization, but it also has hidden costs, delays, and higher upfront expenses.

On the other hand, buying can save time and money but may require compromises. This guide breaks down the real cost of building a house in Georgia, the hidden fees, and how to make the smartest financial decision.

Building a home provides the unique opportunity to create a space tailored to your exact specifications. You get to choose everything from the layout to the finishes. However, it's important to be well-informed about the current market dynamics in Georgia:

• Rising Construction Costs: Georgia experienced a 4.7% increase in construction costs compared to the previous year. This surge is due to a 19.7% hike in wages for construction workers and a 3.0% rise in material prices.

• Labor Market Dynamics: The construction industry has had trouble finding enough workers, which has caused wages to go up. This trend impacts overall building expenses and project timelines.

• Material Price Fluctuations: Global supply chain issues have caused material costs to change. This affects budgets and planning for new constructions.

In addition, you should consider that unexpected delays and material price fluctuations could impact your budget and timeline.

Understanding your conventional loan down payment options can help you plan the initial costs more effectively.

The average cost to build a house in Georgia falls between $300,000 and $700,000, excluding the cost of land. Typically, this works out to $150 to $350 per square foot. However, for high-end finishes, costs can rise to over $500 per square foot.

Here's a general cost breakdown:

• Foundation: $9,383
• Framing: $14,000 – $32,000
• Roof: $5,866 – $13,207
• Siding: $11,524
• Appliances: $2,100 – $5,400
• HVAC System: $10,000
• Plumbing System: $2,280 – $5,120
• Electrical System: $602 – $2,591
• Building Permits: $457 – $2,859
• Finishes and Fixtures: $30,181 – $321,021

Attention: Keep in mind that these figures are averages. Your actual expenses will depend on your specific choices and circumstances.

When deciding whether to build a new home or buy an existing one in Georgia, it’s important to weigh the benefits and drawbacks of each choice. Here's an in-depth analysis to assist you in making an informed decision.

Choosing between a 15 vs. 30-year mortgage can drastically impact your long-term costs when buying or building a home.

• Customization: Building a home allows you to design every aspect to your liking, from the floor plan to the finishes. This ensures the home meets your specific needs and preferences.

• Modern Amenities and Energy Efficiency: New constructions can include cutting-edge technology and energy-saving systems. This may lead to lower utility bills in the long run. Modern HVAC systems, insulation, and energy-efficient windows can lead to significant savings.

• Lower Maintenance Costs: Since everything is brand new, you’ll have minimal maintenance in the early years. All systems and structures meet the latest building standards.

• Higher Initial Costs: Building a home can be more expensive upfront. In Georgia, construction costs range from $150 to $350 per square foot, depending on the design and materials chosen. For a 2,500-square-foot home, this translates to $375,000 to $875,000, excluding land costs.

• Longer Timeframe: The construction can take several months or even over a year. It depends on factors like design complexity, weather, and contractor availability. This requires patience and temporary housing arrangements during the build.

• Unexpected Expenses: Problems like supply chain delays or higher material costs can cause budget overruns. It's essential to have a contingency fund to address these unexpected expenses.

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• Immediate Availability: When you buy an existing home, you can move in quickly. Typically, this happens within a month or two after closing.

• Established Neighborhoods: Existing homes are usually situated in established communities. They feature mature landscaping, which adds to their charm and sense of stability. These neighborhoods may also offer amenities like schools, parks, and local businesses.

• Potential Cost Savings: The median sale price in Georgia is about $324,674. This can be lower than the cost of building new homes.

• Limited Customization: Existing homes have designs set by past owners. This makes it hard to customize without renovations.

• Potential for Higher Maintenance Costs: Older homes can have higher maintenance costs. They may need updates like new roofs, plumbing fixes, or electrical work. This can result in extra expenses.

• Energy Inefficiency: Several old homes do not have modern energy-saving features. This can lead to higher utility bills. Upgrading insulation, windows, and HVAC systems can mitigate this but at an additional cost.

Beyond the obvious construction expenses, several hidden fees can impact your budget.

• Land preparation, including clearing and leveling, can add $1,500 to $3,000 to your costs.

• Building permits can range from $1,000 to $2,000, with additional fees for HVAC, plumbing, and electrical permits.

• Inspections for water and sewer lines can cost anywhere from $270 to $1,7371.

Furthermore, consider potential expenses like architectural plans, which can cost 5% to 15% of the total construction cost, and impact fees for local infrastructure. Property surveys may add a few hundred dollars. Be sure to factor in these often-overlooked costs when planning your build.

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Buying is usually cheaper. The median home price in Georgia is around $324,674, while building a home costs $300,000 to $700,000, excluding land. Construction also involves hidden fees and potential delays.

On average, it takes 7–12 months to build a home in Georgia. Weather, permit approvals, labor shortages, and material delays can also push back the timeline.

Yes, you can get a construction loan, but they often require 20%+ down payments and higher interest rates than traditional mortgages. Once built, the loan must be converted into a standard mortgage.

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Discover how our all-in-one homebuying platform can increase your buying power and put money back in your pocket. Start your journey today!

Sign up for free