Is there anyone out there that would buy a car that only gets 10 miles to the gallon? Used homes are like SUV’s that get 10 MPG. They were designed during a time when energy was cheap and they no longer fit the reality of today’s energy prices. The cost of energy will remain at the forefront of our thoughts for as long as it takes us to change from fossil fuels to renewable energy sources. Those expensive SUV’s are being steeply discounted now and consumers are spending more to buy more energy efficient vehicles like the Prius. They’re paying more for the vehicle so that their weekly out of pocket expenses are lower.
A used home is just like that SUV only much more expensive. Up until recently most homes air conditioning systems only had a 10 SEER ac unit. The SEER rating is the efficiency rating of the system. The higher the number the more efficient the system is. But the ac is only part of the story. How a home is built, insulated, and sealed will also impact and determine how efficient a home is. The type of windows, doors, insulation, house wrap, sheathing, shingles and other building products used are all important to how a home performs.
We know logically a new home should cost more than a used one. But we have to confidently see the value. Being able to see what is behind the walls carries great value at a time when we know other builders are having to address Chinese drywall, mold, quality issues, and poor service. Remember you only have to apologize for price once but you will apologize for poor quality and service forever. Simply put you don’t know what you are really getting with a used home. Forget about the toe nails in the carpet for a minute. On a used home you have issues such as unseen wood rot, insect infestations, mold, structural damage, systems such as air conditioning and water heaters that have not been maintained, degraded insulation, and diminished life spans such as for roofing, paint and flooring.
The question is about price versus cost. One day a man asked W. Edwards Deming how much he had paid for the pair of shoes he was wearing. His reply was “I don’t know I’m not done wearing them yet.” We all know we can go to Payless or Walmart and get a pair of shoes for under $20. Those shoes might wear out in a few months and over the course of the year you might invest another $20 several times. Or you can buy a good pair of shoes that are designed and built to last.
With a new home you pay a little more up front but you do so with the peace of mind that everything is new and has been inspected many times. It comes with a warranty and a guarantee that should something occur it will be properly addressed and in a timely manner. With a used home nothing is covered and the costs for repair or replacement are often unforeseen and can be catastrophic. Can you imagine moving into a used home in August only to have the air conditioning go out the following week. How many thousands of dollars will it cost to have the system replaced? Or how about the first utility bill for a home that has a 10 SEER ac system and R-19 insulation? The $100 a month savings on the mortgage payment doesn’t look so good compared to the $500 utility bill.
If you know your primary competition is used homes know the facts you as a customer are effectively armed with the knowledge you need to make the best choice.
- A new home has never been lived in.
- New homes are in new neighborhoods where the infrastructure and amenities are new.
- New homes allow for personalization
- New homes are energy efficient and have high performance materials
- New homes have water saving technology
- New homes are wired for Smart technology, high speed internet, and home entertainment
- New homes have the latest appliances
- New homes are more comfortable and have healthier air quality
- New homes carry warranties and guarantees
- New homes are built to the most current building and hurricane codes
- In a new home you can include your options and upgrades in your financing
- New homes are safer
- New homes do not require as much maintenance and up keep
- It’s easier to get to know your neighbors in a new community because everyone is new
- You have more flexibility in financing options with a new home
- And with a new home you’ll be the first person to walk on the carpet, use the plumbing, and operate the appliances.
You’re already giving enough money to the oil companies for your vehicle. No need to keep paying top dollar for natural gas, electricity and water for your home too. Those dollars are better invested in the home itself. Check out Deitch Custom Homes for your new custom home Tampa.