There are many essential features to consider when you’re in the market for a home: location, size, layout, age, condition, and – the most crucial – price. As you delve into your research, the more you will get bombarded with ads, the more you will start to wonder if it’s cheaper to buy an old home or build a new one. At first glance, it may seem more expensive to invest in a new construction home. But, when considering all the components that play into buying old, you may have second thoughts.
Here are three important factors to take into consideration when it comes to buying old vs. building new:
Buying:
Although inspections are performed before purchasing a home, it’s almost impossible to forecast what problems will arise post-purchase. What may seem like a great deal from a price perspective may ultimately cost way more than you bargained for. There are a plethora of characteristics you must be mindful of when purchasing an old home: its electrical systems, foundation, electrical outlets, roofing, water source, insurance costs. Insects, pests, asbestos, and lead paint can also be an issue for older homes.
Solutions to any of these unforeseen issues can be costly and may require large out-of-pocket expenses that you must consider when buying old.
For example, if the house you’re purchasing does have old electrical or plumbing systems, it will be difficult and expensive to get homeowners insurance. Many policies won’t cover damage caused by aging, worn-out systems. To get insurance, you may have to update your home extensively, which will cost a considerable amount of money.
Even the most solidly built homes can form cracks and unevenness in the foundation slab over time. These issues can cause corrosion, dry rot, and moisture damage. Depending on the structural issues’ extent, foundation repairs can escalate to over $10,000 – and homeowners insurance won’t cover these costs.
Building:
When building a new home with Maronda, there are no unexpected expenses. Not to mention, our new construction homes come with a new home warranty. Besides peace of mind, you can be sure that your new home will be free of surprise expenses caused by leaky roofs, broken pipes, undergrounded outlets, and insurance costs.
Buying:
Most older homes were not built with energy efficiency in mind. Many do not have any insulation (if they do, it’s usually outdated and ineffective), and their windows are often single-pane. To get the most out of any heating or air conditioning, you will need to update both the insulation and windows.
Also, the electrical systems in older homes were not designed to keep up with modern usage. We use a lot of electricity between computers, mobile devices, televisions, HVAC systems, appliances, dishwashers, and washer/dryers in this day and age. If your lifestyle includes using the electronics listed above, you’ll want to make sure that the home you are buying will work for your wants and needs.
Older homes will more than likely have little to no energy-efficient appliances, and you will have to upgrade, which can be costly.
Building:
New construction homes come with new appliances that are far more energy-efficient than older ones. Not only will you save money on monthly utility bills, you won’t have to worry about repairs either. New construction homes typically come with smart technology updates as well, such as smart locks and home security systems. Upgrading an old home with intelligent technology devices can be pricey and will be an additional out-of-pocket expense.
Lastly, all Maronda homes are Bee Smart Energy Efficient. We are dedicated to building homes that meet strict guidelines, which involve integrating new technologies and energy efficiency. Over the years, a typical Maronda homeowner can save thousands of dollars in energy costs alone.
Buying:
It’s rare to find an old home that is 100% move-in ready. Custom floor plans and personalization is typically a sacrifice you’ll have to bear when purchasing old. Renovations and additions can be made post-purchase, but it will be an additional out-of-pocket expense for you.
Building:
One of the biggest perks of a new construction home is that it’s 100% move-in ready, fully personalized to your wants and needs, with no additional costs after purchasing. There will be no need to add an extra bedroom or den, change the carpet, paint the walls, or update the kitchen cabinets.
At Maronda, our team works with you from initial design to implementation. Not only do you pick out every aspect of your home before building, we also offer virtual interactive floor plans, 360 tours, color selection tools with online visualizers, and in-person selection centers, and model home tours. Check out our full construction process here.
So, the question is: are new construction homes cheaper? After evaluating all the significant problems of purchasing old, they very well may be. The uncertainty of purchasing old could potentially dig a deeper hole in your pocket than the single cost of building new. However, whether you buy old or build new, there’s no doubt that this will be one of the most significant investments you will make in your life. If you choose to develop new, Maronda is here to make sure that this investment is one you will be in love with forever.
