If you're a buyer in the Richmond market in 2026, you already know the score. There's not enough inventory. What is on the market is overpriced. Half the houses you tour have already had three offers by the time you walk through. The other half need $30k–$60k of work the day you close, and you're competing with a flipper who will pay cash and waive inspection.
So a lot of people in your spot are starting to ask the question they didn't think they'd ever ask:
"Should I just build instead?"
Honest answer: maybe. Sometimes yes. Sometimes no. It depends on five things, and most of the online comparisons don't actually look at any of them.
Here's the real side-by-side, the way we run it for Marlow's Team clients before they decide.
The Quick Comparison (then we'll get into details)
| Factor | Buy existing | Build new |
|---|---|---|
| Time to keys | 30–60 days from offer | 6–9 months from contract |
| Total cost (median 3-bed in Henrico) | ~$410k | ~$370–$390k all-in |
| Move-in condition | Whatever the seller left you | Brand new, never lived in |
| Customization | What you see is what you get | You pick the plan, lot, and finishes |
| Inspection issues | Common | Brand new, under warranty |
| Maintenance reserve needed Year 1 | $5k–$15k typical | $0–$2k typical |
| Risk during process | Inspection surprises, appraisal gaps | Construction delays, change-order creep |
That table tells you most of the story. But the decision usually comes down to the five things below.
Factor 1: Time
Buy: If you find the right house, you can be in it in 30 to 45 days. Faster if it's a cash deal or a quick close.
Build: From the day you sign the construction contract, expect 6 to 9 months to move in. Some plans on simple lots can come in closer to 5 months. Custom builds on lots that need septic or significant grading can stretch to 10–12 months.
The honest tradeoff: If your lease is up in 60 days and you have nowhere to land in between, building probably isn't the right move right now. If you have flexibility — you're renting month-to-month, you have family you can stay with, or you're selling first and going to rent for a stretch — building works fine.
We've had clients sell their existing home, rent for 6 months, and move into their build with cash from the sale to put down on the new mortgage. That's the cleanest financial path if your timing allows.
Factor 2: Total Cost
This is where most online "build vs buy" articles get lazy. They quote the build cost without the land. Or they quote the median home price without acknowledging the buyer's actual all-in (closing costs, immediate repairs, maintenance reserve).
Let's do this honestly.
Buy: 3-bed/2-bath existing home in Henrico, ~1,650 sqft, built 1995
| Line item | Cost |
|---|---|
| Median sale price (early 2026) | $410,000 |
| Closing costs (~3%) | $12,300 |
| Inspection findings (typical for a 30-yr-old home) | $8,000 |
| HVAC reserve (system is mid-life) | $3,000 |
| Roof reserve (10 years left, replace at year 10) | $4,000 (annualized $400/yr × 10) |
| New paint, basic updates | $5,000 |
| Year-1 effective cost | ~$442,300 |
Build: 3-bed/2-bath new construction in Henrico, 1,650 sqft, plan-based
| Line item | Cost |
|---|---|
| Construction (1,650 × $155/sqft) | $255,750 |
| Land (1/4 acre Eastern Henrico) | $80,000 |
| Site work | $12,000 |
| Utility connections (water + sewer) | $11,290 |
| Permits & fees | $5,500 |
| Construction loan interest (6 months) | $8,000 |
| Closing on construction-to-permanent loan (~2.5%) | $9,300 |
| Year-1 maintenance reserve (everything's new + warrantied) | $1,000 |
| Year-1 effective cost | ~$382,840 |
Difference: ~$59,500 in favor of the build.
That's not a small number. That's a year of college tuition. That's a paid-off car. That's a real number in a real budget.
And the build comes with a brand-new HVAC, brand-new roof, brand-new appliances, brand-new everything — under warranty. The Henrico resale comes with whatever the previous owner felt like fixing before the listing photos.
Now — these numbers shift depending on the lot you find, the neighborhood you want, and what part of the region you're in. Richmond city builds run differently than Hanover builds. Land is the wildcard. Sometimes the build math doesn't work because the land is too expensive. We tell people that when it's true.
Factor 3: What You Actually Get
This is the part that doesn't show up in spreadsheets.
Buy: You get whatever the previous owner left you. The kitchen layout they liked. The bathroom tile they picked in 2008. The carpet color their wife approved. The bonus room they walled off because their kid wanted privacy.
If you love it as-is, fine. If you want to change anything significant, you're spending $20k–$80k+ on a renovation in year one or two. And good luck finding a contractor who'll show up on time in 2026.
Build: You pick the plan. You pick the lot. You pick the finishes — flooring, cabinets, countertops, fixtures, paint colors, exterior colors, landscaping package. Within reason and budget, the house gets built around what you actually want.
For most families, this is the part they didn't realize they could have. You don't have to compromise on the layout because that's all you found in your price range. You can have the kitchen island you actually want. The walk-in closet that fits your wardrobe. The 3rd bedroom that's actually big enough for a queen bed.
This is also where the "build is for rich people" myth comes from. It's not. It's just that nobody told you you could have this option for the same money.
Factor 4: Risk Profile
Both paths have risk. They're different risks.
Buy risk:
- Inspection surprises (we've all been through it — the radon test, the failed HVAC, the foundation crack the seller "didn't know about")
- Appraisal gap (appraisal comes in under contract price — you bring cash to close or the deal falls apart)
- Hidden defects that don't show up for 6 months
- Whatever the previous owner did badly that becomes your problem
Build risk:
- Construction delays (weather, permits, supply chain — usually 2–6 weeks, occasionally more)
- Change-order creep (you ask for one upgrade in week 3, then another in week 7, then another at drywall — they add up)
- Lender complications (construction loans are a different animal — the wrong lender stalls things)
- Builder reliability (this is the BIG one — pick the wrong builder and your project becomes a nightmare)
The big difference: build risks are mostly process risks that the right team manages. Buy risks are mostly things-already-happened risks that you find out about after you own them.
The single biggest variable on the build side is your builder and your project manager. If you're working with people who've done this before — who answer their phone, who walk the site weekly, who manage the trades, who handle the permits — your build is boring (which is what you want). If you're working with somebody who took on more work than they can handle, it's a different story.
(That's the whole reason Marlow's Team exists, honestly. Derrick's job is to make the build process boring for you.)
Factor 5: Resale Story
If you plan to live in the house for 7+ years, this matters less. If you might move in 3–5 years, it matters a lot.
Buy: A 1995 Henrico colonial in 2026 will be a 1995 Henrico colonial when you sell in 2030. The market will have shifted, the comps will have shifted, and your home will have aged 4 more years.
Build: A 2026 build will be a 4-year-old home when you sell in 2030. New construction holds value better than aging resale in the Richmond market historically — particularly in growth corridors like western Henrico, Short Pump, the new Hanover developments along Route 1, and parts of Chesterfield north of Route 360.
For investors specifically: build-to-sell margins in this market run 8–14% net depending on the lot and the plan. We know because we just ran them.
So Which One Should YOU Do?
Here's how we think about it for clients:
Build probably makes sense if:
- You have time flexibility (no hard 60-day move date)
- You want the house to actually fit your family, not the previous owner's
- You can handle a 6–9 month process
- You have land already, or you're open to where we suggest looking
- You're tired of walking through tired houses
- You like the idea of brand-new everything under warranty
Buying probably makes more sense if:
- You need to be in a specific school zone immediately
- Your timeline is under 60 days
- You found a specific home in a specific spot you genuinely love
- You don't want to make decisions about flooring and finishes (some people don't — that's fair)
- The math on a build doesn't work in the area you want (we've told clients this)
For everyone in between — which is most people we talk to — the right answer is run the numbers on both and decide with information. Not the version of "the numbers" you find in a Zillow article. Your numbers, your lot options, your real cost.
That's a 15-minute conversation. We'll tell you straight.
Run Your Numbers — Free 15-Minute Consult
Bring me your real budget, where in the region you want to be, and what's mattered most about the houses you've toured. I'll bring you what that budget actually builds — including an honest answer about whether building is right for you.
Book My Free Consult →Or text/call (804) 938-8730 — happy to talk it through.