What’s the best value when you’re looking to buy a new home right now? Is it smarter to build new or buy a re-sale home? Changes in the housing market have made it confusing for many homebuyers. Regal Homes wants you to understand your options, so let’s explore the pros and cons.
Homebuyers are the losers in the bidding war
The high demand for new homes has fueled soaring price increases. Even with a higher price, offers must often be above that listing price to be considered by the seller. Will your yearning cause you to buy a home that isn’t worth the price? Will it even appraise for that offer? When the market settles back to something closer to normal, will your home still be valued at the price you paid? These are important considerations when you’re deciding whether it’s cheaper to build or buy.
Maintenance adds to your total cost of ownership
In spite of the higher cost of building or buying a new home, you need to understand that the purchase price is just the start. If you choose a re-sale home, will you need to do renovations or repairs to make it the home you really want? Have you gotten remodeling estimates?
The National Association of Realtors posted estimates of $7,000 to replace an HVAC system, which typically lasts about 15 years. A new roof could cost anywhere from $8,500 to $14,300 for 2,000 to 2,200 square feet. The cost of replacing a typical double-hung vinyl window runs between $400 and $650 per window. Wood windows are considerably higher. Do you want to swap out those old kitchen cabinets? Plan to spend $3,200 to $8,500, on average, for the purchase and installation of in-stock cabinets, and twice that for custom cabinets.
Don’t be a disappointed homebuyer who doesn’t have the budget to make-over your home after buying it. It happens more frequently than you might expect. And leaves homeowners experiencing buyer’s remorse as they have to live with less of a home than they thought they would have.
New construction homes are tech-smart
Are you a techie? Do you plan to use smart home automation, high-speed internet, and all the other state-of-the-art goodies that make life easier? Check to make sure that the re-sale home you want to buy can accommodate your needs. Will the wiring need to be updated? Is the home plug-and-play ready for your devices, or will you need someone to update it? Homes built today are designed for devices and smart home automation. They have CAT 5 or CAT 6 cables that are far better at handling your technology than cables used previously.
Are you paying more and getting less?
As you’re browsing new homes for sale in the Wasatch Front or Wasatch Back, ask yourself what you’re paying for. Construction costs are irrelevant in a home that’s been standing for years. Nor do they have the added expense of paying current prices for new appliances, materials, and systems. You may be paying more for a re-sale, but not getting more.
When you buy a luxurious new Regal home, you’re getting all-new everything. Your new home is built with the latest technology, which includes energy-efficient materials and systems. You’re getting a home that’s covered by a builder’s warranty, so you don’t have the worry of paying the price for repairs and replacement. Compare the prices of what has been built into the home you’re considering. Is it priced according to what you’re getting?
The price difference between building and buying
The U.S. Census Bureau assigned a median sales price of $450,600 for an existing home in the U.S. in April 2022. The National Association of Realtors estimates it costs $332,524 (not including the land) to build a 2,594 square foot new home, which reflects $35,872 in the higher costs of materials like lumber, which rose in price 250%.
The prices vary depending on where you’re looking, as well as the size, style, and features of the home. The whole concept of value is your level of satisfaction in what you get for what you paid. Remember that when you’re deciding whether to buy a resale or a new home.
Regal Homes invites you to see the communities we’re building in Cottonwood Heights and Heber City, Utah. We make it fun and easy to buy a new construction home in a desirable location, with all the features you wanted, and maybe some you didn’t even know you could have!