Worried about Home Maintenance Costs? Consider This

Worried about Home Maintenance Costs? Consider This

If one of the main reasons you're hesitant to buy a home is because you're worried about the upkeep, here’s some information you may find interesting regarding new home construction versus existing homes (homes previously lived in by an owner).

Newly Built Homes Need Less Upfront Maintenance

If you can afford it, you may find a newly built home could help ease your worries about maintenance costs. Think about it, if everything in the house is brand new, it won’t have the wear and tear you may see in an existing home – and that means it’s less likely to need repairs. As LendingTree says:

“Since the systems, appliances, roof and foundation are new, you’re less likely to pay for major or minor repairs within the first few years of homeownership. That can make a big difference for first-time homebuyers who are adjusting to owning rather than renting.”

Plus, many builders also have warranties on their homes that would cover some of the more major expenses that could pop up. As First American explains:

“The new systems in your home, like plumbing, electrical, and HVAC, are typically covered for one to two years by your builder’s warranty. When something happens to these systems, you contact the builder or their warranty company.”

Existing Homes Can Still Have Great Perks

It's worth noting that warranties aren't exclusive to newly built homes; they're also an option for existing homes.

Your agent can help negotiate with the seller to include a warranty as a concession in your contract. However, be aware that not all sellers will agree to this. If they don't, you still have the option to purchase a warranty yourself. As Forbes explains:

“During a real estate transaction, a home warranty policy can be purchased by the buyer or the seller.”

And there are benefits for both parties when it comes to a home warranty. According to MarketWatch:

“A buyer’s home warranty benefits both buyers and sellers, as it helps the seller close the deal while providing the future homeowner with peace of mind that they’ll be covered if a system or appliance breaks down . . . Sometimes, a seller will pay for the first year of the home buyer’s warranty to sweeten the deal, but it depends on the real estate market.”

If you're interested in a home warranty for peace of mind, rely on your agent. They can negotiate on your behalf to see if the seller is willing to cover one for you. Just keep in mind that the chances of a seller including a warranty depend on the conditions in your local market.

So, Should I Buy New or Existing?

While the need for less upfront maintenance is a great perk of new construction, there are some benefits that only an existing home can offer.

For example, existing homes often have character and charm that are hard to replicate. The unique quirks of an older home can make it feel more inviting and homey. Additionally, existing homes typically feature more developed landscaping and a well-established sense of community, which can make the neighborhood feel more welcoming. On the other hand, new construction homes are often blank slates, lacking these features. Furthermore, if you opt for new construction, you might have to wait for the home to be completed, depending on its stage in the building process. Ultimately, it comes down to what’s most important to you.

Bottom Line

Whether you opt for a newly built or an existing home, you can alleviate some maintenance concerns with a home warranty. To assess your options and determine your top priorities, consult with professionals.