The Costs of Waiting to Buy A New Home May Surprise You

If you’re on the fence about buying a new home, it may be because of the hard costs involved. Mortgage loan rates, increased building material costs, higher construction labor and land prices are all legitimate concerns. All in all, however, the costs of waiting to buy a new home may surprise you.

The Costs of Waiting To Buy A New Home

Home Price Appreciation

The real estate market has historically trended upward, with home prices appreciating over time. While there are periodic dips, the long-term trend is an increase in home values. Waiting to buy in hopes of a market downturn could result in purchasing a home at a significantly higher price. This appreciation affects not just the cost of buying but also the potential equity one could miss out on by waiting.

Rental Expenses

For those currently renting, the cost of waiting can also be measured in the rent payments that continue to line someone else's pockets. Every month of waiting is a month's rent that could have gone toward building equity in your own home. Additionally, renters do not benefit from the tax deductions available to homeowners, such as mortgage interest and property tax deductions, which can lead to significant savings.

Inflation and Cost of Living

Inflation affects all aspects of the economy, including the cost of new homes. Construction materials, labor, and land costs tend to rise over time, leading to higher prices for new homes. Waiting to buy a new home not only potentially costs more in terms of price but also in the increased cost of living that accompanies inflation.

The "Soft Costs" of Waiting To Buy A New Home

But have you also considered the “soft costs” of waiting? Yes, the costs in your safety, health, security, comfort, peace of mind, time and freedom! Consider just a few factors that add up regarding the price of waiting to buy a new home.

Opportunity Costs

The opportunity cost of waiting to buy a home extends beyond financial metrics. It includes the personal satisfaction and stability that come from homeownership, such as customizing your living space, having a sense of permanence, and being part of a community. These intangible benefits contribute to the overall quality of life and can be just as valuable as the financial aspects.

The Cost of Maintaining An Older Home

Remodeling your current home, whether to bring it up to your current tastes or to make it more marketable for potential buyers may not save money in the long run. Then there’s the consideration of cleaning costs and general maintenance, including lawn care that you’d rather just hire someone to get done. How about major home components that may suddenly come up, like HVAC system replacements, roof repairs, termite damage, or plumbing and electrical failures? Those can add up quickly, when you least expect it.

Buying A New Construction Home

There is a solution to these unknowns, and while it may not be top-of-mind at the moment, it should be: buying a newly constructed home. With the equity in your current house, you may end up with a small monthly payment and a brand new home. You’ll have the latest new home technology, energy and cost savings, and your own personalized style from the moment you move in. You may also enjoy the resort-style amenities of a new community that make your current neighborhood pale in comparison, yet you can still stay close to family and friends.

Prospective buyers should carefully consider these factors and consult with financial and real estate professionals to make the best decision for their circumstances. In many cases, the costs of waiting to buy a new home may surprise you, making a compelling case for entering the housing market sooner rather than later.

Epcon Communities

So, consider taking advantage of today’s favorable new home market, and moreover, consider Epcon Communities. Our new low-maintenance communities (with most lawn care included), with private, garden courtyards and some with resort-style amenities make the decision easy. And our single-level home designs make daily living easy, too.