Should I Buy an Existing Home or Build a Custom Home in East Texas?

In East Texas the buy-or-build question comes down to three things: how specific your must-haves are, how soon you need to move, and whether you can carry construction financing for about a year. Existing homes around Tyler are selling at a median of roughly $325,000 and can close in 30 to 45 days. A custom build with Kirby Custom Homes typically runs $200 to $300 per square foot plus land and takes 9 to 14 months once plans are approved. Neither is “cheaper” across the board. Here is how we walk clients through the decision.

The honest comparison

Is it cheaper to build or buy in East Texas?

For a comparable finished home, building usually costs more per square foot than buying resale, but the gap is narrower here than in the metros because East Texas land is still affordable. A resale in Whitehouse or Lindale at $450,000 might be 2,600 square feet on a half-acre lot. A new custom home of the same size on an acre in the same school district will generally land between $650,000 and $850,000 once you add the lot, site work, and finishes. The difference buys you a new roof, new mechanicals, current energy code, and a floor plan built around how your family actually lives. Read our full cost breakdown in Building a Custom Home in East Texas.

How long does it take to build a custom home in East Texas?

Plan on 12 to 18 months from the day you buy the lot to the day you get keys. Design and engineering take 2 to 4 months, permitting depends on whether you are inside a city or in the county, and construction itself runs 9 to 14 months for most Kirby Custom Homes projects. If your timeline is driven by a job start date or a school year, that is often the deciding factor, and we will tell you if buying resale is the smarter path.

Can I build if I have not found land yet?

Yes, and that is where having a realtor and a builder in the same family helps. Stephanie handles the land search, including lots in The Cascades, Hollytree, and The Woods, plus acreage in Bullard, Flint, and Lindale. Darren reviews a lot before you buy it so you know what it will cost to build on. Roughly half of Stephanie’s sales are land and ranch property, so this is a normal week for us, not a special request.

Do property taxes work differently on a new build?

The appraisal district values the land and any improvements as of January 1 each year, so during construction you pay tax on the lot plus whatever is built by that date. Once you move in and file your homestead exemption, the first $140,000 of value is exempt from school district taxes under the exemption Texas voters approved in 2025 (Texas Comptroller). Values and rates are published by the Smith County Appraisal District. See our East Texas property tax guide for county-by-county rates.

What about resale value on a custom home?

A well-built custom home in an established community holds value well because it competes with resale homes that are older and less efficient. Where buyers get into trouble is over-building for the location, such as a $1.2M home on a road where everything else is $350,000. We map comparable sales before you finalize a budget so the finished home makes sense on paper as well as in person.

When we recommend buying instead of building

• You need to be settled inside six months.
• Your must-have list is short and there is inventory that fits it.
• You would rather put equity into a lake lot or acreage later than into construction interest now.
• You want to live in a specific older neighborhood, such as the Azalea District, where there is no land to build on.

When we recommend building

• You have looked at 15 homes and keep saying “if only it had…”
• You want acreage, a shop, or a specific lot orientation.
• You are relocating with equity from Dallas, Houston, or Austin and can fund the down payment on a construction loan comfortably.
• Multigenerational living, accessibility, or a home office layout matters more than move-in speed.

Working with Kirby & Co on this decision

You do not have to decide before you call. Most clients come in leaning one way and we tour both: existing homes that fit the list, and two or three lots with Darren to talk through what a build would look like. One family, one conversation, and you choose with real numbers. Start the conversation or see how the custom build process works.