Is It Cheaper To Build Or Buy A House
By Kurt Real Estate Nov 23, 2019
When it comes to buying a house, everyone has different preferences. Some like new, some like old. Some like Craftsman, some like Mediterranean. Whatever your taste, when it comes time to pick that new home, you may be wondering what the difference would be in building a brand new home and avoiding any repairs or contingencies versus buying an existing home. What would be more costly? Realtor.combreaks it down for you.
The purchase price of an existing house is, on average, $50-$60K less than building a new one. However, if building a new home, you know you are paying only for what you want and, therefore, may be getting a little added space in the areas that matter most. An existing home may have features you don’t necessarily want or need but you’re paying for them anyway.
The older a home, the more wear and tear. One thing you won’t have to be concerned with when building a new home is any miscellaneous maintenance costs, which can add up in an existing home. Replacing a roof or furnace could cost you upwards of $5,000. Not to mention, when building brand new house, almost everything is under warranty.
Existing homes do have more mature landscaping. You don’t have to wait 15 years for that baby oak to grow into its space. Mature trees can also add a lot of value to a home. When building a new home, landscaping can be very costly. It’s an added expense you’ll want to be sure you’re prepared for.
Older homes generally have dated appliances that waste energy…and we all know how expensive that bill can be. New construction will have the latest and greatest which, on average, consumes about 21% less energy.
Existing homes have a history in the market which indicates how the value will appreciate in the future. Building a new home in an up-and-coming neighborhood can be somewhat of a gamble.
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