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What Is Cheaper: Buying Old Or Building New?

Essential features to consider when you’re in the market for a new home are location, size, layout, age, condition, and – the most crucial – price. The more research you do, the more ads you will see, and the more you ask yourself, “is it cheaper to buy an old home or build a new one?” At first, it may seem intimidating to invest in a new construction home. However, after considering all the components that play into buying old, you may have second thoughts.

When it comes to buying old or building new, there are three essential factors to take into consideration:

  1. Unexpected Expenses
  2. Energy Efficiency
  3. Move-in Ready

 

Buying:

Although various inspections are performed before purchasing a home, it’s almost impossible to determine what kind of problems and when they will arise post-purchase. Although the price looks good on paper, you may end up paying way more than what you bargained for in home renovations. When purchasing an old home, be mindful of characteristics like electrical systems, foundation and skills, electrical outlets, roofing, water source, and insurance costs. Further common issues found in older homes consist of Insects, pests, asbestos, and lead paint.

Unfortunately, significant out-of-pocket expenses may be required when fixing these costly, unforeseen issues in older homes.

For example, let’s say the house you purchased has old electrical or plumbing systems. Many policies won’t cover damage caused by aging, worn-out systems. Therefore it will be difficult and costly to get homeowners insurance. To get insurance, you will have to update your home, which will be a considerable out-of-pocket expense.

Furthermore, over time, even perfectly built homes can form cracks and unevenness in the foundation slab. Cracks can cause corrosion, dry rot, or even moisture damage. Depending on the structural issues’ extent, foundation repairs can escalate to $10,000 or more. To make matter worse, homeowners insurance won’t cover these costs either.

Building:

When you build a new home with Maronda, there are zero unexpected expenses. On top of that, every brand new home comes with a new home warranty. Your new home will be free of surprise expenses caused by leaky roofs, broken pipes, undergrounded outlets, and insurance costs – giving you peace of mind.

Buying:

Typically, older homes were not built with energy efficiency in mind. Many have little to no insulation, and the windows used back then 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 to sustain your utility bills.

Also, most electrical systems in older homes were not designed to keep up with modern usage. Between computers, mobile devices, televisions, HVAC systems, appliances, dishwashers, and washers/dryers, we use a ton of electricity daily. If your lifestyle includes using the electronics listed above, you’ll want to ensure that the home you are buying will keep up with your wants and needs.

When choosing to buy old, remember these homes will have little to no energy-efficient appliances, resulting in costly out-of-pocket upgrades.

Building:

New construction homes come fully equipped with brand new energy-efficient appliances. When building new, you won’t have to worry about repairs, and you will save money on monthly utility bills. Most new construction homes also come with intelligent technology updates like smart locks and home security systems. Upgrading an old home with intelligent technology devices can be pricey and will be just another out-of-pocket expense.

All Maronda homes are Bee Smart Energy Efficient. We are dedicated to building homes that meet strict guidelines, which involve integrating new technologies with energy efficiency. Over the years, a typical Maronda homeowner can save thousands of dollars in energy costs alone.

Buying:

It’s infrequent to find an older home that is 100% move-in ready. When purchasing old, choosing a floor plan and personalization options that fit you and your family is a sacrifice you’ll have to bear. Renovations and additions can be made post-purchase, but it will be an additional out-of-pocket expense for you.

Building:

Every new construction home is 100% move-in ready, fully personalized to your wants and needs, with no additional costs after purchasing. There will be no need to knock down walls, add a flex space, upgrade a bathroom, or change the color of the walls.

At Maronda Homes, our team works with you from initial design to implementation. We offer virtual interactive floor plans, 360 tours, color selection tools with online visualizers, in-person selection centers, and model home tours. Check out our complete construction process here.

What is cheaper: Buying Old or Building New?

After evaluating all the unforeseen problems of purchasing old, new construction homes may be cheaper. The uncertainty of buying old could potentially dig a deeper hole in your pocket than the single cost of building new.

Whether you decide to buy old or build new, there’s no doubt that this will be one of the most important financial decisions you will make in your life. If you choose to build new, Maronda is here to make sure that this investment is one you will be in love with forever.

Start building your dream home today!