With the East Tennessee housing market continuing to shift, many prospective homeowners are asking:
“Should I build a new custom home or buy an existing one?”
There’s no one-size-fits-all answer — but understanding the pros and cons of each can help you make the right decision for your timeline, budget, and lifestyle. Whether you’re considering land in Greeneville or a property in Sevierville, this guide outlines the key factors to consider in 2025.
Why More Buyers Are Choosing to Build in East Tennessee
Customization and Control
When you build, every element — from layout to materials — is chosen by you. Want a vaulted ceiling with mountain views? A multigenerational suite? Smart-home tech throughout? With a custom home, you’re in control.
Lower Maintenance and Repair Costs
New construction means new systems, appliances, and finishes — all under warranty. Compared to older homes that may need roof replacements, HVAC overhauls, or plumbing updates, a custom home can save you thousands in the first decade alone.
Energy Efficiency and Modern Standards
Today’s custom homes are built to 2025 standards — with better insulation, efficient windows, and high-performance HVAC systems. This translates to long-term savings and lower environmental impact.
Build on Your Land
One of the most compelling reasons East Tennesseans choose to build is location flexibility. Whether it’s a wooded lot near Gatlinburg or a wide-open plot in Washington County, building lets you create your dream home in your dream setting.
When Buying an Existing Home Makes Sense
Faster Move-In
If you’re relocating quickly or need housing within 30–60 days, buying an existing home may be more practical. Construction timelines can range from 6 to 12 months, depending on your builder and site conditions.
Historic Charm or Established Neighborhoods
Some buyers love the character of older homes, especially in historic areas like Jonesborough. Existing homes may also be located in more mature neighborhoods with fully developed amenities.
Predictable Upfront Costs
When you purchase an existing home, the price is typically fixed and known. There’s no guesswork around upgrades or allowances — although inspections are crucial to reveal any hidden issues.
Financial Factors to Consider in 2025
- Custom Home Cost: In East Tennessee, expect to spend $170–$250 per square foot depending on design, finishes, and land prep.
- Resale Inventory is Tight: Many move-in-ready homes are either outdated or overpriced due to low supply.
- Interest Rates Remain Volatile: Locking in financing early is critical for both buying and building.
Questions to Ask Yourself Before Deciding
- Do I already own land, or am I prepared to find and purchase a lot?
- Am I looking for long-term personalization or short-term convenience?
- Do I have time to wait 6–12 months for construction?
- Am I ready to be part of the design and decision-making process?
- What’s my total all-in budget (including site work, finishes, and permits)?
Final Thoughts: Build for the Future or Buy for Now?
In today’s market, building a custom home in East Tennessee offers more long-term value — especially for families who want to grow into their space, retirees planning their forever home, or investors developing rental cabins.
That said, buying a home still offers convenience and can be the right fit for those needing immediate housing.
At Olson Custom Homes, we help you navigate both options. From evaluating your land to walking through local build timelines, our team is here to offer honest, expert advice every step of the way.
Reach out today to explore your options — no pressure, just guidance.