The Smart Way to Win the Build vs. Buy Battle in CRE

When real estate organizations face a new technology need, one deceptively simple question often arises: Should the solution be built in-house, or purchased off the shelf?

The decision carries weight. The wrong choice can waste time, drain budgets, and create tools that don’t scale. The right one, however, can reduce risk, accelerate efficiency, and unlock competitive advantage across the business.

Why Buying Often Wins

For most core functions, buying an established solution is the smarter move. Vendors who specialize in one area typically bring:

• Proven expertise and depth – They’ve solved the same problem for dozens or hundreds of customers.
  
  
• Speed to market – Off-the-shelf products get teams operational quickly.
  
  
• Reduced risk – Maintenance, updates, security, and compliance rest with the vendor, not internal staff.
  
  
• Lower total cost – Upfront investment is smaller, and ongoing improvements are handled externally.

To put it simply, if you're going to buy, you should end up with a better product for less cost in a much shorter time frame.

In short, buy the core. Stable, reliable foundations are best delivered by proven providers.

When to Build: The Edge

Building in-house makes sense when organizations need custom features or workflows that provide a unique edge—the type of innovation that investors and customers notice. Building can deliver:

• Full control over design, data, and innovation.
  
  
• Flexibility to tailor workflows and user experiences to exact needs.
  
  
• Opportunities to differentiate in areas where no proven solution exists.

Or as it’s often summarized: “Buy where the market is mature, build where the market is blind.”

The caution is cost and risk. What seems like a unique advantage today can quickly become standard if vendors move into the space faster than internal teams can iterate.

How to Decide Whether to Build or Buy

The most effective approach comes down to distinguishing between whether you need the core or the edge:

• Core = Buy. Foundational systems such as ERP integration, authentication, or AP automation are best delivered by mature vendors who ensure reliability, compliance, and ongoing updates.
  
  
• Edge = Build. Differentiators—proprietary workflows, unique acquisition models, or innovations tied directly to customer or investor choice—are where in-house development can create lasting advantage.

Here's a guiding question to consider: Would a customer or investor choose this company specifically because of this feature? If yes, it may be worth building. If not, buying is usually the smarter path.

Avoiding Common Pitfalls

Overbuilding is one of the most common mistakes, spending years and significant capital on internal tools that vendors eventually outpace. This leaves teams locked into inferior solutions while bearing ongoing maintenance burdens.

A stronger approach is to:

• Buy reliability. Stand on proven foundations.
  
  
• Build advantage. Invest selectively in unique capabilities that drive differentiation.
  
  
• Reevaluate regularly. Market dynamics shift; today’s edge may become tomorrow’s commodity.

How CRE Firms Can Win the Build vs. Buy Decision

In commercial real estate, operational efficiency and focus are critical. Building technology in-house can be tempting, especially with a capable IT team, but success comes from knowing when to lean on proven partners and when to double down on unique innovations.

Buy where the market has matured. Build where true differentiation is possible. That balance is how organizations win the build vs. buy battle.