When you’re in the market to buy a home, deciding between buying brand new versus pre-owned or used is one of the first decisions to make. One thing that will influence your decision is the cost of renovation, which unavoidably come with a used home. Here are some common costs that you will likely face if thinking about home renovations, and information regarding why buying new may be the better choice financially. When you’re in the market to buy a home, deciding between buying brand new versus pre-owned or used is one of the first decisions to make. One thing that will influence your decision is the cost of renovation, which unavoidably come with a used home. Here are some common costs that you will likely face if thinking about home renovations, and information regarding why buying new may be the better choice financially.
The Cost of Replacing Systems that Keep You Comfortable
Two of the most essential, yet the most expensive, home systems that need to be replaced over time – and may need to be replaced sooner than later if you are purchasing an old home–are the heating components (furnace, water heater) and air conditioning. According to Energy.gov, the lifespan of a central air conditioning system is between 15 and 20 years, and HomeAdvisor.com reports that the national average cost of installing a new A/C system is more than $5,000. A similar story can be told for a furnace – the lifespan is between 15 and 20 years, and the cost of replacement ranges around $3,000-$3,500 between material and installation costs. This means that if you buy an old home with outdated heating and cooling systems, you may have to put close to an addition $10,000 into the home immediately just to keep things comfortable!
Repairs and Improvements Inside and Out
The other problem with older homes is that they typically are in need of repairs, replacements, upgrades or touch ups right off the bat (as soon as you purchase them) or within a five to ten-year time frame. On the other hand, you can count on brand new homes to look great and perform optimally for 15 to 20+ years before any repairs or upgrades are necessary. Things that may need some attention on an old home from the moment you move in include:
- Hardwood floors
- Kitchen cabinets, counters
- Paint – interior and exterior
Other upgrades might include things like a sprinkler system ($3500-6000) and covered patio ($2000-3000) which are becoming more common in modern homes. Depending on the age of the pre-owned home, you may be looking at complete renovations which can exceed the value of the home itself.
You may not want to stop at just giving a pre-owned home a simple facelift with a paint job – you may want to expand the master bedroom, redo the bathroom, or transform the kitchen into the one of your dreams. If any of these projects are on your wishlist, you can be sure that they will cost a pretty penny to complete. HGTV.com suggests that the average bathroom remodel costs homeowners more than $10,000, and that an upscale bathroom remodel can cost more than $25,000. Kitchen remodels are even more expensive, with the average DIY cost (the cheaper version) being more than $15,000.
Buying New or Old – What to Do?
When you’re looking at homes, keep an eye out for signs that you will need to invest in repairs or improvements. If you buy a brand new home, chances are good that you will keep these costs at bay for at least a decade, if not two or more. If you are buying a used, older home, however, it is very likely that you will spend significant sums of money on at least one of the home improvement projects listed above, if not more than one. As such, when you are thinking about buying a new home, remember that older homes often have hidden costs attached, and that by buying old, you may end up spending more than you would by buying new. If you are considering a pre-owned home, then we strongly recommend having a home inspector provide a complete inspection of the home from the attic and roof to the crawl space and everything in-between.
Move Into Your Dream Home Today
Don’t spend your free time caulking and painting. Spend your free time doing the things you want. People work hard so that they can live comfortably and pursue their passions. It’s part of the American dream. At Hayden Homes, we provide brand new, gorgeous homes in communities across three Northwest states – Washington, Oregon, and Idaho. Whether you’re thinking of buying your first home, or are shifting into the role of homebuying for the second, third, or fourth time in your life, we are here to assist you in finding the perfect home for you and your family. Our homes are attractive, guaranteed and designed with homeowner comfort in mind. To learn more, call us or visit Hayden Homes today.