When planning your dream home, one of the biggest decisions you’ll face is whether to buy an existing house to renovate or build new from the ground up. While there is no wrong answer, the path you ultimately take will impact your budget, timeline, and overall vision for your new home. Both options offer unique benefits, and the right choice ultimately depends on your priorities, goals and circumstances.

In this guide, we’ll explore key factors to consider when deciding between buying a house to renovate and building a custom home from the ground up. By the end, you’ll have a clearer sense of which path suits you and your family best.

Renovating a Home: Pros, Cons, and Considerations

Renovating an existing home allows you to blend the charm of an older property with modern updates tailored to your tastes. But is it the right move for you? Let’s look at a few advantages and disadvantages of buying a house to renovate:

ADVANTAGES:

#1 You’re Preserving Character and History
As interior designers who specialize in historic home renovation, we love the architectural details and unique charm that often come with older homes and are hard to replicate in new construction. If you value craftsmanship or historical features, renovating might be your best option.

#2 You’re Able to Buy into Existing Neighborhoods
If location is a top priority for you, buying an existing home is often your only option to get into that dream neighborhood. In highly desirable and competitive neighborhoods you often have to take what you can get which can be a blessing in disguise. We tell clients all the time that ugly and dated homes are great because they’re essentially “blank slates” and any upgrades you do will add a lot of value.

#3 Potential Cost Savings
If you’re lucky enough to find a home that has a layout you like and only needs cosmetic updates, renovating can be more budget-friendly than buying new. A strategic renovation can increase your home’s value without all of the expenses that come with starting from scratch.

#4 Quicker Timeline
Renovations are often significantly faster both in design and construction time vs. building a new home. Design time for a custom new build is typically 6 months or more and construction is even longer at 12-18 months. Renovations, even with a significant scope can very often be livable within a year including both design and construction timelines.

POTENTIAL CHALLENGES:

#1 Unforeseen Issues & Expenses
Renovations, especially in older homes, often uncover hidden issues behind the walls like outdated wiring, plumbing problems, or structural concerns. These unexpected surprises, while still significantly cheaper than building from scratch, can add time and cost to the project. It’s important to go into a renovation understanding that there will be issues and to budget in both time and money to deal with them - 10-20% of your overall construction budget is often recommended as a contingency to address hidden issues that won’t be revealed until construction begins.

#2 Limited Layout Customization
While we optimize existing floor plans all the time for our clients, there’s no getting around the fact that by renovating an existing home you’ll be much more limited in options than if you were to build new with a blank slate. Structural elements like bearing walls and columns are expensive to remove if they’re even able to, so it’s important when purchasing a home to renovate that the general floor plan is something you can live with.

#3 Living Through a Renovation
If you’re considering renovating your existing home, understand that living through a renovation can be incredibly disruptive. It’s important to plan logistically for how you and your family will live during the construction period whether that means moving out to renovate all at once, phasing the project so that only a portion is being worked on at once, or a combination of the two.

Building New: Crafting a Home from the Ground Up

Building a new custom home offers a lot of benefits. From a completely custom layout to hand-selecting each finish, custom homes allow you the freedom to design a space that perfectly fits your needs.

ADVANTAGES:

#1 Complete Customization
Building from the ground up allows you to design a home that meets your exact specifications. You control everything—from the floor plan to the materials—ensuring the space is a perfect fit for your lifestyle. This helps ensure that not one square inch is wasted and is ideal for clients who are looking for unique features, such as a custom rock wall in a home gym that we’re designing for a custom home client.

#2 Energy Efficiency and Modern Technology
When you build a new home, you’ll be able to take full advantage of the latest building materials and energy-efficient technologies. Features like smart home systems, high-performance insulation, and energy-efficient windows can be easily integrated with the design and will save you money on utilities for years to come. Here’s some of our favorite features to include in our clients’ custom homes.

#3 Minimal Maintenance
A new home means new everything - from the HVAC systems, appliances, foundation, and materials, you won’t have to worry about costly repairs and replacements for years. Many components will also come with warranties, so if you do end up with a lemon you know you’re protected.

#4 Resale Value
Most of our clients who decide to build custom homes do so because they plan to live in it forever, that being said, it’s still good to know such a big investment will pay off should you ever need it to. Custom homes tend to hold their value well, especially in desirable locations. A thoughtfully designed, modern home can be a strong investment if you ever plan to sell in the future.

POTENTIAL CHALLENGES:

#1 Longer Timeline
Building a custom home often takes much longer than renovating an existing home. Securing permits, designing the home, and constructing it can take anywhere from 12 to 18 months or more, depending on the complexity and jurisdiction. It’s important to go into it knowing that it will be a marathon, not a sprint. Finding the right builder can help to expedite timelines, but know they will still be longer than most renovations.

#2 Higher Upfront Costs
The cost to build new is usually higher than renovating because you usually don’t have anything to start with. This is especially true when you factor in the price of land, permits, and foundation work. However, reduced maintenance and energy savings can offset these expenses over time.

#3 Finding the Right Land
Securing the ideal plot of land in a location you love can be challenging, especially in sought-after areas or dense cities. This can drag out timelines even further since it’s impossible to begin any design work without a site to design from. Availability in established areas and zoning restrictions can also limit your options.

Ultimately, the decision to buy an existing house to renovate or build a brand new custom home is an extremely personal one that depends on your values and priorities.

You’ll probably want to consider renovating an existing house if…

You love the character of older homes,

Location is more important to you than a completely custom layout,

and, you have a renovation budget that allows for flexibility for unexpected issues.

On the other hand, you should probably plan to build a new custom home if…

Complete customization and the latest technology are a must,

You’ve found the perfect plot of land,

You’re planning on staying for a very long time and are willing to wait for the perfect home to be built.

At Paige Studio, we work with clients with clients who are renovating historic gems as well as clients who are building their dream brand-new forever home. No matter which path you choose to take, we can help turn your vision into your dream home. Book a complimentary strategy call with our lead designer today to discuss the best next steps for your home whether you plan to renovate or build new.

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