We are just a couple of months away from April which will welcome the beginning of spring as well as New Homes month. According to NAHB’s eyeonhousing.com, owning a newly constructed home (versus an older home) can save you money over the life of your home. Today’s homes are constructed to very high energy standards, meaning you will enjoy lower energy bills than an older home of the same square footage. Additionally, new homes are just that, new! This means you won’t have as much maintenance. Ongoing maintenance expenses are also typically lower on homes that are built by today’s construction methods. Then there is the remodeling that comes with a resale home. While your lucky neighbor down the street is decorating their beautiful new home, chances will be remodeling and making other updates. You may want to tear out that small outdated kitchen or replace that nasty old shag carpet that is full of dirt, pet hair and probably even toe nail clippings! Gross. Don’t waste your time and money pulling up old carpet with toe nails. Instead, here are a few reasons how homeowners can save money when purchasing a new home.
- Routine Maintenance. Houses need upkeep, which can add up depending on what needs maintenance. About 26 percent of all homeowners spend $100 or more a month on various upkeep costs. Out of this amount, only 11 percent of homeowners spend this much on a new home. In fact, 73 percent of new homeowners will spend less than $25 a month on routine maintenance costs. Home owners who own a brand new Keystone home will spend only $132 a year compared to $2,832 a year for a 10-year-old toe nail home. New homes that are 5-years-old or less save between 15 to 20 percent on routine expenses and long term replacement costs. On average, homeowners will spend anywhere between 1 to 4 percent of a home’s value annually on maintenance and repairs. As the homes age, this budget will increase. For homes that are less than 10-years-old, homeowners will want to spend 0.75 percent of the home’s value, homes between 10- and 20-years-old will want 1.5 percent and homes over 20-years-old will want to spend 3 percent.
- Energy Expenses. According to the 2011 AHS, homeowners spend 11 cents per square foot per year on electricity. However, homeowners who own a new home will spend less – only 68 cents per square foot. Keystone Custom Homes are built better from the ground up with new high performance energy plus homes. Keystone Custom Homes are built better from the ground up with high performance Energy/Plus homes that save money. These energy savings homes will also help lower the cost of the heating expense by using natural gas heat. This will save owners up to $1,500 a year compared to a used home.
- Utility Expenses. For other home expenses, such as the water bill, homeowners will spend an average of 28 cents per square foot per year. Owners of a new home spend only 22 cents. For trash, the average cost per year is 15 cents per square foot while it is only 13 cents for new construction.
- Insurance. Owners of a new home will see a lower insurance premium as well. The average cost owners will spend for property insurance is 39 cents per square foot. For newer homes, the cost is only 31 cents per square foot.
These savings are just a few of the reasons why owning a newly constructed home can be better than owning a previously owned home. What are some of your favorite reasons for owning a new home?