What Is More Cost Effective – New Home or Resale Home?

What Is More Cost Effective – New Home or Resale Home?


Hi everyone. This is your Tampa Bay Realtor Lance Mohr and this week I got a question from a first-time home buyer and I thought it was a really good question so I wanted to share it with you so the question is for first-time homebuyers is it more cost effective to build a new house or buy a resale I thought that was a great question and I’m gonna address this in the video all right so I think that’s a really good question and it’s actually a question I’m sure that’s on a lot of people’s minds should I go resale should I go new what should I do and the first thing I would say I’m gonna go over the Tampa market but I think this would pretty much apply to any market out there but I don’t want to certainly speak to someone if you’re living in New York and Des Moines Iowa or something like that so it really depends on how long you’re gonna be at home that’s the first question you need to ask yourself with any home you’re buying are you gonna buy a home living it maybe three to five years and then relocate outta state are you gonna buy a home living in three to five years and then maybe you’re gonna sell it buy another home or maybe you’re gonna turn it into a rental property keep it for 30 years so what’s your long-term plan for the home because you need to know that first now if you’re buying a brand new home and you’re comparing it with the home and the subdivision or in the area that’s one to two to three years difference there’s probably not a big difference on the surface but it depends with the prices because keep in mind if you buy a brand new home from a builder you’re getting all the warranties you’re getting the warranty the Builder offers it’s usually a one-year on basically everything if it has to do with appliances well you’re gonna have a warranty from whoever’s providing the appliances whether it’s GE or whomever it is but that’s a little different than if you’re buying a home that’s a year or two old because it’s not going to be warranted by the Builder so it really depends on what the price level is in what you’re buying now if you’re comparing a home that say brand-new with the home that might be let’s say 12 years old it’s gonna be different but the first thing you need to do is again think how long you’re going to be in the home the second is you have to compare apples with apples so it’s hard to take a home over here that’s brand new that’s in a real nice subdivision in a real nice up-and-coming area and compare it with the pre-owned over here that’s sort of in an average subdivision has to be apples and apples so in other words or maybe you have a pre-owned over here that’s in a really nice subdivision that’s established and then you have a brand new home over here maybe it’s just an up-and-coming subdivision maybe it’s enough incoming air and you’re not really sure how nice it’s going to be so you have to look into that and trying to compare apples and apples but anyhow so let’s say you have a home and it’s brand new and you’re comparing with the home that’s twelve years old there’s certain things that you have to think about now obviously the first that comes to mind is the energy efficiency there’s a big difference between a home it’s brand-new now and then a home that might be five ten or fifteen years old or older because technology like an hour areas if you’re gonna buy a brand new home it’s gonna be a lot better as far as technology energy efficiency so homes twelve years ago they had single pane windows homes now they’re pretty much all double panes our insulation code was our nineteen now builders aren’t really putting in our 19 because they can’t have butters rainy and they need to hit so at a minimum they’re gonna put in in our 38 and this an are 30 in the ceiling so you know the better builders will go with the are 38 back in 2010 years ago 12 years ago they didn’t really have radiant barriers now a lot of the builders are putting in radiant barriers were a very hot state so it definitely reflects the heat and there’s a lot of Technology and there’s a lot of other technology as well everything now is very very energy-efficient the hot water heaters are energy efficient the HVAC units are going to be a lot more energy efficient even the dishwashers the ovens the microwaves is this going to be a lot more energy-efficient in a new home so these are things to think about now certainly the price is going to be different but remember the question was cost not price but cost so that’s what we’re going over the other thing is you’re going to have to look at different maintenance issues is is the roof how much longer does the roof have if it’s a 20-year shingle roof it’s probably going to be shot in eighteen to twenty years certainly if you’re in Florida so if you buy a home that’s ten years old if you’re going to be in the home eight to ten years you’re probably replacing the roof what about the air hand or has it been replaced what about the hot water heater um has it been replaced the other thing you’re gonna want to look at is the is the day the nests of a home certainly if you have a brand new home you’re gonna have the most up-to-date Florrie in the most up-to-date cabinetry countertops fixtures etc so you have to look at all this I know my wife and I are looking at homes right now and she keeps on sending me these listings and I’m looking through them like okay well it has thirty six inch cabinets and might not be the case where you’re at but in Tampa that’s like the kiss of death you know one thirty six inch cabinets it just says cheap you want 42 inch cabinets the nicer the better the kitchen is a very very important part of the home so there’s certain things that I look at with how long we’re gonna be in the home I know when I buy my next home I’m going to be in the home at least probably 10 years so I need to think okay what’s the best for me and my family long-term not just right now but long-term what’s going to be hoove me and a lot of it could depend on the area as well if you’re in an area where maybe they’re not building new homes maybe you’re going to be more on the pre hometown but this could take effect whether the home is three years old or again if it’s 15 years old you need to think about all these things you need to look at the big picture don’t just look this is what the square footage is this is the year build this is many bedrooms and bathrooms and garage spaces it has and this is what it costs you know price-wise it’s the total cost you have to look at everything so start off with how long are you gonna live in the home where is the home located and then look at the whole picture and determine what’s best for you know hopefully you have a realistic really good real estate agent they could walk you through all this and give you an idea of what you need to be looking for it so I hope this video helped you if if you liked it give me a thumbs up share it on your social media I would appreciate that if you have any questions at all if you’re in the Tampa Bay area I’d love to work with you if you’re in another area and you don’t know a real estate agent just reach out to me I’d be more than happy to hook you up whether you’re looking for a pre-owned home or a new home and I even have some videos up here so check out the different videos find in a real estate agent how to choose a real estate agent and some other videos for first-time homebuyers and home buyers who’ve bought maybe even five or ten homes have a wonderful day best of luck to you you

About the Author: Michael Flood

3 Comments

  1. The energy efficiency of a new home is so much better than homes 10+ and especially 20 years old or older. It makes an enormous difference in the operating cost of the home. It may be less expensive up front to buy the older home, but you will probably pay for it in the energy cost.

Leave a Reply

Your email address will not be published. Required fields are marked *