Homebuying options: FOX6 Cents asks, should you buy or build?

VILLAGE OF WAUKESHA, Wis. - To build or not to build? Home construction season is in full swing. But where do you begin if you’re looking to build your own home? 

Building a neighborhood

The backstory:

A construction site is where David Belman feels most at home. As the president of Belman Homes and a second generation builder, he’s put his stamp on more than 600 houses in our area. 

"This is one of the few things you can buy, and you can see it being made right before your eyes," Belman said.

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Belman is hard at work on a neighborhood in the Village of Waukesha, known as Pebble Brook Hollow. 

"This is 88 acres – what’s neat about this development is there’s over 50 acres of the land that are undeveloped – lots of natural, open spaces," Belman described. "Rolling hills, wetlands and lots of mature trees."

But one of the challenges he faces – is there are now few places to build in Waukesha County. Belman said limited lot availability in Waukesha County is driving prices up. Material costs have risen too. 

"We are still feeling some impacts from the tariffs as well – we recently got some price increases on metal products — like aluminum and steel for garage doors," added Belman.

It all contributes to hefty price tags for new homes: a 4-bedroom condo in Pebble Brook Hollow is on the market for $730,000.

Pricing of homes

Dig deeper:

"The first time I had a customer ever write an offer over the asking price was in 2019," recalled Bill Moeller, a Mortgage Advisor for Bank Five Nine in Oconomowoc.  "And the feeling that someone said, ‘I’m going to write $20,000 over the asking price’ – I’m like, ‘Excuse me?’"

Moeller said 30% of people looking to buy a house right now are opting to build one instead. The existing housing market is just too competitive. In fact, in April 2025, the National Association of Realtors reported the median US existing home cost was $414,000. That’s $7,000 more than the median cost of a brand-new home.

"Home building is an achievable move for someone," said Moeller. "If they just look at the process more holistically." 

Of course, other factors can change the price tag — like buying land or custom builds. 

Plus, Moeller said the process can take a long time – often more than a year. But he’s here to help:

"Before a customer walks through the door at Bank Five Nine, what do they need to have in their pocket before they can get a loan?" asked FOX6's Bret Lemoine. 

"I think it’s a good idea to monitor your credit rating to have an idea of where things are at," answered Moeller.

Moeller urges anyone interested in a home or construction loan to use MyFico.com. He said it offers lenders a clearer picture of your mortgage-based credit score. 

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"Let’s face it, Everyone has a relationship with money. And depending on how strong your relationship with money is will dictate how you go through that process," Moeller said.

The process can also be intimidating for new home buyers or builders. We asked Moeller to walk us through three terms that often throw people for a loop:

• Escrow: That’s the neutral third party that temporarily holds the project funds in a separate account – usually it’s a title company.
• Draw Schedule is a negotiated plan that details when a lender releases funds to the contractor. It’s done in stages – or draws – and is tied to specific milestones during construction.
• Closing costs: Moeller said there are unique costs for people building a home tied to appraisals and title insurance.

"Get your foot in the door"

What they're saying:

Belman said in 2025, 65% of his clients were repeat customers. He reminds us that very few first-time home-buyers ever start out in their "dream home."

"I tell everybody, buy a house as soon as you can," Belman said. "Even if it’s not your dream house, get in and get your foot in the door as early as possible – because homes build wealth."

Once that foot is in the door, it won’t be long until you roll out the welcome mat. 

"But it’s really nice when the house is all done, and they walk in the door, and they get their keys and there’s excitement on their face – that just changes everything instantly," added Belman.

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