Get 24 Savings Treasures in New Construction Homes vs. Used Homes
What is a better buy, new construction homes or used homes? How do you balance the costs? Buying a home is a big investment. It is one of the most important financial and emotional decisions that many of us will ever make. For most people, it is worth it, especially compared to renting. It is hard to pass up the long-term investment benefits of homeownership. Do you buy a brand-new home or a used home?
New Construction Home vs Used Home – What Am I Looking For?
There are differences between buying a new or used home. A new home is a known commodity. It is built with new materials. There is a good chance that it comes with warranties. Up to date technology and appliances are already installed. Everything is clean and in tip-top shape.
Buying a used home is an adventure. You never know what you are going to get. The day after closing, you may wake up to unexpected repairs. The water heater broke, or you find the roof is leaking.
To better understand the advantages of buying a new home, let us dive into some of the reasons why many choose to go new.
New Construction Home – Untouched & Clean
To some, the most important reason behind buying a new home is because it is brand-spanking-new. There’s a sense of relief knowing that you are the first homeowner. You know you are the first to:
- Pull into that garage space
- Play with the kids or pets on the plush new carpet
- Soak in that luxurious owner’s suite tub
- Cook with those high-end appliances
- Hang your clothes in that walk-in closet
- Enjoy that open-concept layout
- All of it!
New Construction Home Energy Savings
New homes come with new appliances. How they save you money comes down to improved energy efficiency.
According to Consumer Reports, 72% of our energy bills traces back to:
- HVAC uses 43%
- Heating water uses 20%
- Appliances use 9%
Energy Efficient New Appliances Save Money
- Washing Machines can use up to 75% less water
- Refrigerators can save up to 9% in electricity usage
- Dishwasher water use can be 12% more efficient
- HVAC new units can save up to 40% on energy costs
- Energy-Efficient Thermostats can cut energy use by up to 8%
New homes do not need repairs. When they do, there is a good chance it is covered under the builder’s warranty. An older home comes with no warranty. Costs are on the homeowner.
Time wears things down. Older homes need more repairs. That translates into higher costs. For those who own a home, they know that over time that they will have to deal with:
- Plumbing issues
- Old roof
- Cracked tiles
- Aged ceiling fans
- Unaligned doors
- Repainting walls
Lower Maintenance and Utility Costs
Ongoing home maintenance needs to be budgeted for. With a new home, everything is new. There are appliances, rooms, a driveway, and well everything. Your new home and appliances usually come with a warranty. Many new construction homes meet the H.E.R.S standards. Make use of builder warranties. Items under warranty save you money. Why? You are not paying out of pocket for the repairs.
What should your maintenance budget be? The general rule of thumb is 1% of the property’s value. US News and Freddie Mac suggest setting that budget at around 4% of the property’s value. Either way, the older the home, the more your need to budget.
Older Home Maintenance Costs Based on Today’s Prices
Keep in mind this doesn’t include the contractor fees. Costs start at $300 and tend to shoot to over $1000 or more.
5-10 years Replacements
- $600+ – Dishwasher
- $300+ – Microwave
10-15 years Replacements
- $1500+ Hot Water Heater
- $ 500+ Garage Door Opener & Springs
- $2500+ Refrigerator
- $ 750+ Oven
- $ 600+ Stove Top Range
- $ 100+ Smoke & Carbon Monoxide Detectors
- $5000+ Carpet
15 years + Replacements
- $8000+ Roof
- $9000+ Exterior patios/decks
- $ 750+ (each) Faucets
- $ 200+ (each) Toilets
- $3000+ HVAC units
- $6000+ Vinyl Siding
- $1000+ Attic Insulation
- $4000+ Furnace
- $ 500+ Eaves, Soffits, and Fascia
- $10+/sq ft. Repave Driveway
And Then There is Everything Else
Do not forget your doors, windows, floors, walls, molding, and cabinets. They will need touch-ups and repairs. Caulking doors and windows, polishing scuffed floors, and refinishing cabinets cost money. They all get added to the bottom line. Whether you DIY it or hire a contractor, project costs add up. New homes let you put these projects off for years to come.
The Bottom Line
Deciding which home is right for you is a long process of give-and-take. Buyers need a clear understanding of what they want and need when looking at a home. At face value, the answer seems obvious, doesn’t it? Your new home means there are no monthly repairs. New appliances translate into lower electric bills.
We hope that this helps shine a light on why a new construction home has so many benefits. Have more questions? Feel free to speak with our sales team! They would love to share how STK Homes and see if it is right for you and your family. Call 405-696-7202 today!Tags: savings