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A NEW HOME VS. A USED HOME

Like used cars, used homes can sometimes seem like a better deal. And like used cars, used homes are often billed as "as good as new." But like used cars, used homes typically come with hidden costs and unforeseen problems. Roofs leak. Kitchen appliances give out. An older home demands an average of 2-3% of its purchase price for annual upkeep — and that list can be never-ending.

When you add up the monthly maintenance and operating costs of an older home, the real cost becomes more apparent. Some costs associated with the normal "wear and tear" of an older home are listed below:

Used Home Hidden Costs

  • New exterior paint, $1,570
  • New interior paint, $2,500
  • Remodel kitchen, $10,000
  • Remodel bath, $2,500
  • New gas furnace, $2,000
  • New electrical, $4,000
  • New roofing, $4,000
  • Central air, $2,810
  • Waterproof basement, $6,900
  • Re-carpet & re-vinyl, $5,100

* Estimated on 1,300 square foot, 30-year-old home.

That's almost $41,380 you weren't accounting for. So when you add your monthly maintenance and operating costs to your monthly mortgage payment (after taxes), your costs are often substantially higher with an old home than with the purchase of a comparably sized new home. And with a new home, you can build your dream — not inherit someone else's problems.