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Existing Home Vs. New Construction
On the fence about whether to build your dream home or buy an existing one? As you narrow your choices to purchase/remodel an older home or build a new one, consider these points: Older homes usually require some type of repair, remodeling, or updating which means you need to invest money in making those improvements. But does emptying your wallet on home improvements make sense in the long run? How much will you actually recoup? According to Remodeling magazine, updating and remodeling kitchens and baths add the most value to a home. In some markets, remodeling projects will return more than 100 percent of the cost, if the home is sold within a year; if the home is kept longer than one year, returns should increase.
Remodeling project cost estimations:
 | Minor Kitchen Remodel (replace cabinet doors, oven and cook top, laminate countertops, sink, faucet and floor, repaint): Job cost: $8,507; resale value: $8,030; cost recouped: 94% | | | Major Kitchen Remodel (redesign kitchen, replacing all of the above, plus built-in microwave, custom lighting, island): Job cost: $21,262; resale value: $19,190; cost recouped: 90% | | | Bathroom Addition (add a second bath to a house with one or one-and-a-half baths; include ceramic tile and linen closet): Job cost: $11,645; resale value: $10,593; cost recouped: 93% | | | Master Suite (in a house with two to three bedrooms, add a 24-by-16 master suite with walk-in closet, whirlpool tub, separate shower): Job cost: $36,472; resale value: $30,350; cost recouped: 84% | | | Attic Bedroom (in a two- to three-bedroom house, convert unfinished attic space with bedroom and shower/bath): Job cost: $22,840; resale value: $19,084; cost recouped: 84% | | | Two-story Addition (first-floor family room and second-floor bedroom with full bath): Job cost: $55,687; resale value: $46,236; cost recouped: 83% | | | Family Room Addition (add a 16-by-25 room with skylights, hardwood tongue-and-groove floor, fireplace): Job cost: $31,846; resale value: $26,483; cost recouped: 83% | | | Bathroom Remodel (update existing bath with new tub, toilet, vanity, medicine cabinet, lighting, tile): Job cost: $8,423; resale value: $6,480; cost recouped: 77% | | | Replace Windows (10 new 3-by-5 aluminum-clad windows with trim): Job cost: $6,112; resale value: $4,536; cost recouped: 74% | | | Replace Siding (1,250 square feet of new vinyl or aluminum siding and trim): Job cost: $5,458; resale value: $3,983; cost recouped: 73% | | | Deck Addition (16-by-20 deck of pressure-treated pine, including built-in bench, railings, and planter): Job cost: $6,172; resale value: $4,459; cost recouped: 72% | | | Home Office (convert existing room into office with custom cabinetry and rewiring for electronic equipment): Job cost: $8,103; resale value: $5,423; cost recouped: 67% |
Finally, be aware that a consistent trend in recent years indicates that home prices are increasing more quickly than inflation in most areas of the country. So no matter which choice you make, home ownership remains a strong investment – and home improvement a good re-investment – of your financial resources. New Construction
Thinking about building a new home?
Write to us or call at 972-830-9022. We have information on numerous builders and developments represented by Real Living. Do we still need a buyer's agent?
Yes, unless you want to rely on the builder's on-site representative (who is hired to represent the builder). Since you can have your interests fully represented, why not engage a buyer's agent? Unless the builder specifies otherwise (with your consent), there should be no cost difference in your finished home.
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