First-time buyers looking to save money have traditionally strayed from purchasing new homes, but according to Realtor.com, they may actually be more affordable long term than existing properties. While new homes are 10% to 15% more expensive upfront than resale homes, builders can help new buyers with financing options, and buying new also means bypassing inventory shortages and avoiding competing buyers.
In addition, new-construction homes require less maintenance and can save first-time buyers on utility, repair, and renovation costs down the line.
Total homeownership costs include more than just a down payment and mortgage, but many first-time buyers forget that part of the equation.
“Even if a new home is 10% more than a resale home, new homes are built to the latest building codes, which set more stringent insulation and energy standards,” says [Bob] Seeman. This means new homes might cost a buyer less in heating and cooling costs.
“Those efficiencies should help offset a slightly higher monthly mortgage payment,” adds Seeman.
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