Should you buy a new or an existing house?
Everyday people go out to look at houses and they have the age-old debate: should we buy a new house or an existing home?
There is no one answer for everyone, but working with a few facts can help you decide.
Cost is everything in buying a home. You want as much house as you can get for the money.
One of the major costs of an existing home is the deferred maintenance that many homes have. The roof, appliances, furnace, and more can all cost you a great deal of money.
|HVAC Repairs||$100 – $1,100|
|Water Heater Repairs||$100 – $1,400|
|Electrical Repairs||$125 – $3,000|
|Driveway Repairs||$300 – $4,500|
|Asbestos Removal||$500 – $4,500|
|Roof Repairs||$150 – $5,000|
|Septic Tank Repairs||$200 – $5,000|
|Deck Repairs||$250 – $5,000|
|Mold Removal||$400 – $6,000|
|Foundation Repairs||$500 – $12,000|
|Siding Repairs||$100 – $16,000|
This list of costs is from HomeAdvisor's True Cost Guide.
Since everything in an existing home has been used, some of the life of the appliance and every part of the home has been used up. New home appliances usually have a warranty on them. This can reduce costs for years to come.
Insurance on a new home is usually less expensive than on an existing home simply because the insurance company can be assured that everything is up to code, more modern, and complete than in an existing home.
Balancing the Scales
Many people prefer a new home to an existing home. They want the peace of mind of having nothing to worry about.
That means they pay a higher price in their mortgage and don't have to worry about the roof and appliances for 5,10, or even 20 years. For existing home buyers, the savings should go into a bank account for a rainy day fund when the roof needs to be replaced.
There are two major factors to consider when thinking about existing versus new homes:
Time - Do you have the time to deal with anything that might break down? It might just be arranging for someone to put a new roof on, but that's never as simple as it sounds.
Money - There's an average of $67,000 savings buying an existing home. Do you think that will be enough to cover potential problems? If everything in the house goes wrong all at once, will it be less than $67,000?
The final consideration is what do you prefer in terms of style and feel? Your preferences may be worth the money.