There are many things to consider when deciding to purchase a home. One of them being to build or buy existing. Today, let’s talk about those factors to consider when making that life altering decision.
Zillow housing trends reported in 2018 almost 38% of potential home buyers considered a new construction home, however only 11% actually purchased one. Why? Because on average a new construction home will have you paying a 20% premium above purchasing an already existing home. Well, case closed, right?
There are a few things every home browser needs to know when comparing the two options.
1.TOTAL Cost of Ownership
If the average existing home is 10-15 years old what are you looking at for repairs and replacements?
On average: Appliances $3,500 – $10,000, Carpet & Flooring HVAC $7,000, Roofing $9,000 – $12,000
This list continues and these aren’t items typically worked into a mortgage. So, when you analyze the typical items in a used home that will eventually need to be replaced (and unpredictably so) the price gap isn’t that substantial.
2. Quality Counts
The Energy efficiency of a new construction home far out ways that of an existing home. Things like appliances and electronics factor in, but more importantly are the heating and cooling of a home. When asked 77% of potential home buyers say that “knowing the projected utility cost of a home is important”and often a deciding factor. On average a homeowner with a new S W Wold construction home saves $1,000+ annually on utilities alone.
Energy saving contribute to the bottom line value of a new construction home, so on paper your existing home seems cheaper if you just focus on the house payment. In the long run, however, it’s about thetotal outgoing expenses that should catch your eye.
3. Service to Your Expectations
This seems to be the biggest reason most people choose to build versus purchase an existing home. S W Wold thinks, to live in the “dream home”, having a home fit you and your families lifestyle is why a majority of people prefer to build custom as opposed to a floor plan offered by just any builder. And you know what they say…
“Location, Location, Location”,
An overwhelming amount of home buyers say that they don’t care to live in a central city. While not all contractors will build on a lot you have purchased elsewhere, many new construction builders will build in more rural areas. Builders such as S W Wold will build on land you have previously acquired but to build your home and to have it in a desirable location is often all that is needed to seal the deal when deciding new construction vs. existing. There is one more huge point home buyers don’t consider and is often the most beneficial aspect of building/buying new.
4. We’ve got you covered!
The most beneficial yet, overlooked aspect of buying new is the warranty. S W Wold explains that every aspect of a new home is covered, from the structure to the appliances. Often, buyers think that a building inspection gives you the “coast is clear” green light for no problems. Consider however, that this is only addressing any major problems and not considering the ones that will arise later. The warranty of a new construction home is a slam dunk over the potential cost of repairs down the road.
We have covered many angles of purchasing an existing home vs a new construction, and hope we have given you key points to keep in mind as you make the decision for the future home that is the best fit for you and your family.