Can A New Home Be Cheaper Than An Older Home? 3 Ways You Can Save Money

Real Estate Blog

When people talk about building their custom home, they often talk about it in terms of something that they're doing during their retirement. Everyone thinks that building a custom home is expensive, but in truth, a new home can actually be cheaper than an older home. Here are just a few of the ways you may be able to save money through a custom build.

1. You Don't Need to Change Cosmetics

Think about the things that homeowners often renovate when they first move in. These things can include:

  • Painting the walls different colors.
  • Installing new flooring.
  • Upgrading all the appliances.
  • Knocking out non-load-bearing walls.
  • Putting in new fences.

When you build a home, these things are all rolled into the cost of the home already. You aren't paying for the old flooring and then the new flooring on top of that. Further, it costs less to build than it does to tear down and then to build.

Thus, if you're going to be doing any customizing on a property at all, it may be less expensive to build it right from the beginning.

2. New Homes Are Energy-Efficient

New homes can save you a lot of money in terms of energy efficiency. HVAC systems, insulated doors, insulated windows, and energy-efficient appliances are all going to work together to reduce your home's monthly bills. 

The older a home is, the more likely it is to lead to high gas and energy bills at the end of every month. This is money you aren't putting into equity!

3. New Homes Need Less Work

When you buy a new home, you know that the HVAC system should last for the next 20 years. You know the roof should last the next 20 to 30 years. If anything goes wrong with these systems, you have a manufacturer's warranty that you can turn in.

You don't have the same peace-of-mind with an older home. With an older home, you could find yourself having to pay thousands of dollars for a roof replacement within the next few years. Even worse, the damage could happen at an inopportune time.

When comparing older homes to the cost of building a new home, you should always compare apples-to-apples. Make sure you include the costs of reasonably modifying your older home to be like the newer home, in addition to any repairs and maintenance that will need to be done within the next few years.

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7 August 2018

Improving Your Real Estate Holdings

About a year ago, I realized that there were some serious issues with our home. I could tell that we needed to do something to upgrade our residence, so we started looking for a different property. I was able to find a really nice real estate agent who could help, and they worked hard to pair us with the perfect home for our budget and lifestyle. Now I can honestly say that I love my home, and I couldn't have chosen a better one on my own. Check out this blog for great information on improving real estate holdings and finding a better home.