On the surface, buying an existing home seems like the most affordable route to go. After all, the median price of an existing single-family home is $223,000. In contrast, the typical cost to build new construction averages $289,415.
Obviously, there exists quite a bit of variations in sorting out those costs. Plus, the price you pay upfront is only part of the equation when deciding to buy an existing home or build a new one.
Which happens to be Cheaper: To purchase or Build New?
A recent article at realtor.com® laid out a few of the pros and cons financially of purchasing new versus an existing home. Make some of these considerations in weighing the most effective financial route to go:
Square footage: New-homes tend to be spacious than existing ones at a median size of 2,467 square feet. As such, any time you take the average cost of a new build, it breaks down nationally to about $103 per square foot, which happens to be actually less than the cost of existing homes.
Finishes: With an existing home you inherit all the features and finishes, even when you don’t want them. Which could mean you need to budget in some renovations if you’d like to redo anything. With a new home, you’ll have the ability to choose all the features and finishes yourself and have it set in the price from the get-go.
Maintenance: Older homes tend to require more maintenance. The expense of upkeep can be pricey too, dependant upon what has to be done. For example, the average furnace tends to last about 20 years. Whenever it needs replacement, anticipate paying about $4,000. In addition to, that shingled roof will likely need replacement after about 25 years at a cost of not less than $5,000. On the flip side, newer homes tend to need less maintenance because all of the major appliances are brand new and under warranty.
Energy efficiency: Older homes generally have dated windows and appliances, which can lead to less energy efficiency and pricier energy bills. New construction is likely to nearly always trump older homes in energy efficiency, according to Kyle Alfriend with the Alfriend Real Group RE/MAX in Ohio. Indeed, homes built post-2000 consume 21% less energy for heating than older homes.
Landscaping: Older homes tend to have mature landscaping already in place. And that landscaping can up a person’s property value by thousands. Further, those trees can save an estimated 56% on your annual air conditioning bill, in accordance with the U.S. Forest Service. With newer homes, you’ll have to likely pay thousands to install landscaping and may have to wait many years to get it to the point you desire.
Appreciation: Using an older home, you can see the trajectory of prices determined by previous sales prices and of comps nearby. New homes could be a gamble simply because they do not come with a proven track record of plentiful comps that have been tested with time.
Whether you decide to purchase an existing home, or build a brand new home here in the Tampa Bay area, you will want to have someone representing you and your best interests. We have assisted hundreds of buyers find the perfect home for themselves. Give us a call at 813-300-7116 or simply click here and we will be in touch.
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