All Costs Equal: Would You Buy Used or New?

By Andrew Hill @ New Homes Move

So your friends and family have told you buying new is the way to go, but you can’t seem to get your head around the hefty price tag? Sure enough, new homes can entail a higher upfront cost, but used homes have their costs as well. The biggest problem with buying a used home is that it always entails settling for less than your dream home. The key is to look at the big picture and understand that buying a home is an investment. It’s not a one-time purchase and it should not be treated as such.

When thinking about buying new versus used, you should consider the following factors. Imagine two homes in the same neighborhood with the same square footage and the only difference between the two is that one home is 25 years older and costs 25% less. Sounds like a great deal at first, but if you look closer you’ll see a multitude of drawbacks. The older home will have worn out appliances and hardware, which will consume money and labor to repair. The older home may also have outdated technology or other pieces that require replacing. Older homes also tend to be much less energy efficient. Thanks to advances in reducing energy consumption, newer, more efficient homes can help lower your monthly utility bills, a factor often overlooked when considering homes.

New construction also comes with a new home warranty, while the warranty for a used home will probably be out of date by the time you own it. And possibly the most important consideration of all is the amount of remodeling you may have to do. After all, buying a new home that is tailored to your tastes can be much more cost effective than buying a used home that will require extensive modifications. All those costs add up and you can end up with a used house that will cost you just as much as buying new.

So, all costs equal, which would you choose: a home with the square footage, location, floor plan, and amenities you desire or a used home with a layout that doesn’t suit your needs that will require time and labor to fix the house to your liking.

The answer seems obvious to me. For more information about buying new versus used, contact Kathleen Daniels, today!