Can a new home cost about the same as an existing home? There are a number of reasons that can bring the costs closer than you may think. Here are some of the considerations:
1.) Marketing costs, can consume 6% of the sales cost of an existing home, on a $400,000 home somebody is departing with $24,000. This takes the first 4 years and 3 months of house payments to repay which equates to $126,655. With the same house payment, commission adds just over 5.5 years to the length of the loan. Without this cost, a 30 year loan is paid off in 24.5 years.
2.) Home repairs should be expected to be higher on an existing house. New construction is also guaranteed to be in working order. Home repairs may only add a couple of percent, but the risk of significant repairs can be considerably higher.
3.) Cost of operation for new construction is significantly lower than an existing, less efficiency homes. New, tougher federal energy standards have been increasing over the last several years. Even a 2007 home is more efficient that 2006 home. Did you know that the seasonal energy efficiency has been increasing from SEER rating of 8 in the 1990’s, to 10, to 12, and increased to a 13 SEER in 2007? This means that the operational cost is significantly less. Additional operational savings can be implemented at no additional cost for new construction. New lighting fixture can reduce the cost of lighting by up to 77%. Upgrading existing construction can cost thousands of dollars. The use of more energy efficient products is more common and can be specified into the construction of a new home. These products include high efficiency windows, improved building methods, and insulation products.
4.) An optimum design for your family can save up to 10 to 20% of the cost of the home when compared to a home that has space that is not utilized. Our design process works to remove underutilized space based on your needs.
There are many other considerations and cost saving approaches. Call us today and explore the options for your new home.
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