If you’re planning on looking at a new home the thought might cross your mind should you build or buy an existing one? Then, of course, the next probable question is which costs more or less? How far into the construction process do you want to buy? Do you want to do the final touches or start from the ground up? There are a lot of new construction developments throughout central Indiana so this question is pretty valuable right now. Regardless of what’s going on in the world right now, buyers and sellers are still out there and were still performing real estate transactions from a safe and healthy distance. So does buying new construction cost more?
Currently, the median sales price for a new home in the country is $330,000. An existing home is about $275,000. So when we’re talking about the median home price across the country, it would seem that buying new construction is more but there is more to this equation
Here are the costs involved in building a new home
The initial cost.
The cost of a new home can be higher than existing comparables because it’s not always an apples-to-apples comparison. A 2000 square-foot new home can feel much larger than an older one because of the floor plan and certain construction requirements.
Updates and upgrades.
If you buy an older home you may need to update it, which could add quite a bit to the cost. A remodel could cost anywhere from $25,000-$50,000 and buying a new home with these items already done, means it’s built into the price of the home and may actually be less.
Building a new home means you have choices on upgrades, and this can add to the price as well. Higher and countertops and flooring, cabinetry and little details such as crown molding or wainscot and can definitely add to the price. But, if you include those in a remodel to an existing home or older home, they may actually be more.
Older homes or even just existing homes that are not that old will need repairs and replacements. Buying a new home means you won’t need to replace or repair things for quite some time.
Newer homes will typically have the highest level of efficient appliances and eco-friendly materials so your utility cost may actually be lower than on an existing home, and definitely lower than an older home, which may not have these energy-efficient a
Buying a new home probably means you’re going to be in a subdivision unless you are buying acreage far away from town. Many existing homes and especially older homes will not have the Association fees so you’ll need to add that into the cost of building a new home versus buying an existing one. But, this can vary greatly. Many older homes are still in associations so you’ll need to count that cost as well.
We’d love to show you some new homes as well as existing homes throughout central Indiana. Feel free to browse our cities of specialty below or simply contact our office today and schedule a consultation with one of our agents.