Would you rather buy an existing house in Florida or build a brand new one from the ground up?
If that new house costs, on average, 20% more than the existing one, would you change your answer? What if the existing home needed some renovations or new appliances?
These are the types of questions that people considering moving to Florida have to answer on a daily basis. In order to clear a few things up and hopefully make that difficult decision a little easier, let’s take a closer look at the financial side of the biggest decision you will have to make when choosing a home here at the Villages of Citrus Hills.
New Homes Cost More
According to an interesting study by the National Association of Realtors, the historical difference between new and existing home prices has floated around 15-20%. However, over the past few years that number has drifted in a much higher range between 30% and 40%.
But there is also some good news when it comes to new homes!
In order to alleviate some of the sting of new home prices, many developers are offering really great deals and incentives. These might include substantial interior upgrades, or upgraded appliance packages that could be worth thousands of dollars.
Also, the warranty that most new homes come with ensures that your new home will hold up better over the next decade than any existing home might. Florida building codes on a new home will be up to date and therefore less costly to insure.
Hidden Costs of Existing Homes
While the initial cost of an existing home might be significantly less expensive, there is usually good reason for that. As the old saying goes, you’re going to get what you pay for.
If the existing home you have your eye on is going to need new appliances or some remodeling, these are expenses that you should definitely account for before making any decisions. The typical kitchen or bathroom remodel can easily run you up into five figures worth of added costs.
You should also consider that existing homes built even just a few years ago will have fewer green features than today’s new homes, making them more expensive from an energy cost standpoint. Spending an extra $20-30 a month on your electric bill might not seem like a lot, but that extra expense can really add up over time. Also construction standards change and the older the home the more the owner will pay for homeowner’s insurance.
Recouping Your Investment
Another angle that you are going to want to consider is the possibility that you may want to sell the home at some point in the future. Most people who buy homes at the Villages of Citrus Hills intend to stay for the bulk of their retirement years, but things happen that can change that. You don’t want to be in over your head should you need to sell.
As a general rule, the newer the home, the better it is going to be able to hold its value. A big reason for this is that buyers simply want newer homes, and they’re willing to pay a premium to get them.
At the end of the day, the decision between buying a new home or an existing one completely depends on what the buyer determines to be the most important factors.
Take a look at an article we've posted about the 7 Benefits of Building a New Home. Click the link below
Take some time to think about which factors are most important in your case, and you will be well on your way to making the best decision.