Have you been thinking that the time has come to move on from your current home? If yes, now you have a choice to make. Should you buy a new home or a “used” home (aka resale)?
Before you make your decision solely on the cost, Epcon Communities has some factors for you to consider.
The Real Cost of a Home
Resale home can sometimes be priced lower than a new construction home. Things that are “used” often are discounted to account for wear and tear.
But is it accurate to compare the price tag of an older home with that of a new one?
Think about a used car (ok, “pre-owned”). You can have it checked out by a mechanic or count on the dealer’s warranty. But somewhere deep inside, you know that this car has some miles on it and will need upkeep. How much remains a mystery.
A resale home is the same. You will likely have to put some money into repairs and replacements, like the roof, air conditioning system, water heater, furnace, and other systems that wither with age. Maybe you need to upgrade the appliances or replace the flooring, and oh, that carpet needs to go.
The Power of Energy Efficiency
Next, depending on the age of the home, it might not have the benefit of today’s energy efficient design and construction. Homes built according to the 2004 International Energy Conservation Code (IECC) are typically 30% more energy efficient than those that don’t reflect these higher building code standards. And many new homes exceed those results.
Let’s say your total average monthly cost for water, heating, and electricity is $200. Assuming the newer home saves at least 30%, then you reduce that expense by $60 each month, which is $720 per year. With energy costs typically going up, the savings will become more and more valuable over time.
Add it all up to see your total cost of ownership. Maybe the resale home is $20,000 less than a new construction home. But…factor in the costs to repair, replace, and remodel. Consider the extra cost for heating, cooling, and electricity with the resale home. All of these expenses are chipping away at the cost differential.
Appreciate the Appreciation
Remember the used car analogy? As the years go by and you put more mileage on that used car, what happens to the value? It gets lower.
Resale value is an important consideration for a homebuyer. What will this home be worth in 5 to 10 years? Well, it will always be newer than those resale homes. Future buyers who want a resale home will tend towards newer homes, like yours.
Add up the benefits of buying a new home. While you’re thinking about your next home, take a look at the communities we’re building around the country. The architecture is a form of art, designed with a private outdoor courtyard and today’s most sought-after features. In addition, Epcon Communities’ low-maintenance lifestyle frees you from the time-consuming tasks of yard care. Browse the gallery of single-level homes and community locations to see where you new home search can take you.