Something Old, Something New: Compare the Cost of a New Home with a Resale

When you compare the cost of a new home with a resale, the price alone can be misleading. You should factor in other expenses to determine the total cost of ownership so you understand the actual value you’re getting.

A study by New Home Source and Zonda outlined the two options. The median price for a new home was $244,000, which was 38% higher than the price of a resale home. Big difference, right? But will that home actually cost you 38% more in the long term?

• A new home averages 403 more square feet than an older home. So, when you compare the cost per square foot, the price margin is reduced from 38% to 23%.
• A resale home averages 37 years old and costs about 21% more to operate.
• If the home you’re considering does not feature energy-efficient home design (including construction, systems, and appliances), your energy bill could be as much as 18% higher than a newer home that is built with energy efficiency in mind.
• A kitchen remodel in an older home will average $53,391, according to the study, with an upscale renovation quite a bit more.
• A bathroom remodel will cost about $15,700.
• A new roof will cost $18,488, on average.
• You can only expect to recoup about 65% of the cost to renovate your home when you sell it.
• A new home is covered by the builder’s warranty as well as the manufacturer’s warranties for the appliances. You won’t incur out-of-pocket expenses for repair or replacement.

Before you make a major investment, invest some time into understanding all the costs associated with your choices. If you're in the market for a brand new home, consider Epcon Communities. Our single-level, low-maintenance homes provide a simply luxurious lifestyle.