Evans Coghill Blog

Blog Category - Cost of Living

Buying New Homes by the Square Foot

Categories: Cost of Living | Posted: June 11, 2015 | Comments Off on Buying New Homes by the Square Foot

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The real estate industry has created a problem for itself. A real problem that continues today. Fortunately, some homebuyers and new home builders are saying enough is enough and recognizing the fallacy of the problem.

The problem is what home builders often sell is a product by the square foot. “The Riverbend plan, Mrs. Jones, is $140/sq ft”

Mrs. Jones, however, is not buying a two dimensional home. She is buying a 3 dimensional space for her family. She is picturing her family growing up in this home, enjoying family meal time, holidays, having friends over for a cookout. Unfortunately, new home builders are only selling her the floor with no walls or ceiling when they quote a price per square foot.

Builder Magazine wrote about The Square Footage Problem recently concluding that “They (home buyers) buy cubic feet, they buy three- and four-dimensional space and they buy space that gives them value in comfort, health, safety, connection to the ones they care about, and time back.”

We try not confuse new home buyers by just talking about price per square foot. There is so much more to talk about beyond the price of the floor. At Evans Coghill, we believe the better approach is to talk about the features and value of the home, the way you are going to live in it, your neighborhood, your amenities, how you will host the family Thanksgiving dinner, where you can have private space and family space.

Would you ever buy a car by the pound? No, you would find the balance between the features, styling, gas mileage, comfort and your budget in a car and you would buy it.

The price per square foot of the home is important and can be used to compare two homes that are exactly alike. But, are there really two homes are exactly alike? Maybe we can create the $/unforgettable-family-moment in your new home instead? Isn’t that what really matters?

Evans Coghill Homes is a new home builder in the Charlotte, NC area building new homes in Springfield, Riverwalk, Cheval and River Run.  For more information, please visit www.evanscoghill.com.

New vs Old Homes – True Cost of Ownership

Categories: Buying a Home, Cost of Living, New Homes vs Old Homes | Posted: July 6, 2014 | Comments Off on New vs Old Homes – True Cost of Ownership

(This is the sixth in a series on new homes vs. used or old homes. The differences often are obvious but there are some other things you might want to consider like, in this case, the true cost of ownership and the ultimate resale value. Home buyers often stop at just the cost of buying the home and don’t consider the total cost of owning a home.)

The true cost of homeownership must be considered. New homes usually cost less

New homes usually cost less to own, impact the environment less, require less maintenance and may sell for more on resale.

Ever hear of anyone advertising a “Tired Old house for sale?” Me neither! Ever seen anyone advertising an “Like New Home for Sale”?  Me too!

There is a simple reason; unless you’re talking about a vintage bottle of fine wine, newer is probably better.  Most buyers consider the cost of the home they are thinking of buying today.  But how many consider the true cost of home ownership over the time they are likely to live in the home. Not many.  But that’s where the real value proposition lies in a new home.  So consider the value…

  • Do you Value Resale Value?  Consider two nearly identical homes, one is “almost new” and one is 20-30 years old.  Which will likely sell faster, or for a higher price?  The one with the dated finishes that a buyer will want to tear out?  The one with the 20-year roof nearing the end of its useful life that looks terrible? The one with outdated appliances that look outdated, or will by the time you are ready to sell?  Or, the one with finishes and fixtures that are still “in-style”?  Which one would you rather sell when it comes time for you to move?
  • Do you Value Money?  According to a recent National Home Builders Assocation study, “…the average length of stay in a single family home is a little over 12 years”.  So let’s assume you buy a new construction home and stay there for 12 years, vs. if you buy a 20 year old home and stay there 12 years.  How much are you likely to spend on maintenance?

12 year Likely Maintenance Costs: (New vs Used Home)

New Construction Home

20 year old Used Home

(with original components)

Roof replacement

$0

$5000 to $15,000

Appliance replacement

$0

$3000 to $8000

Heating & Cooling System Replacement

$0

$5000 to $15,000

Wood Floor Refinishing

$0

$2000 to $5000

Carpet Replacement

$0

$1000 to $3,000

Water Heater Replacement

$0

$1000 to $2000

Total

$0

$17,000 to $48,000

 

There is no guarantee that you won’t incur ANY of the above expenses in a new construction home, and you likely won’t incur ALL of them in an older home, but the likelihood that you will incur more of these big ticket items is certainly higher for the older home!

  • Do you Value Tax Savings?  It’s no secret that if you own a home you are going to pay property taxes.  But did you know that you might save substantially on those property taxes the first year or two of ownership in a New Construction home?  That’s because there is a lag between the time when a vacant lot becomes a new home and the value change works its way into the property tax system.   So you might enjoy substantial property tax savings on a New Construction home for a partial year, up to almost two years in some areas.  That can amount to thousands of dollars in cash savings!
  • Do you Value Time?  Know how much time it takes to maintain an older home?  Cleaning, painting, caulking, repairing; how long does all that take? Are you in love with the “Honey-Do” list that older homes have?  With a New Construction home, the Honey-Do list is likely to be short.  And while your New home is under warranty, it’s actually a “Builder-Do” list!  How much time will you save in a New Construction home every year?  10 hours?  30 hours?  50 hours per year?  That’s a lot of time –do you value yours?
  • Do you Value The Environment?  Because of today’s “state of the art” building techniques, including Energy Efficiency, the lifespan of today’s building materials, low VOC paints, etc. the “Carbon Footprint” and environmental impact of a new construction home has been greatly reduced vs. what was built years ago?  Today’s homes are about twice as energy efficient as the average existing home, and getting more efficient each year!  That can amount to tens of thousands of dollars in savings over the time you own your next home – not to mention a cleaner environment.

Time, Money, Tax Savings, Resale Value, Energy Savings, Environmental benefits; that’s a lot of Value in a New Construction home that you are less likely to find in an older, used home.  Before you buy, don’t just consider the price tag of the homes you are considering.  Consider the true cost of ownership. Consider the hidden value.  Consider New Construction!

Forrest

New Vs Old Home – There is No Place Like Home

New Vs Old Home – Paper or Plastic

New Vs Old Home – True Cost of Home Ownership

New Vs Old Home – Avoid the Do Over

New Vs Old Home – Health

New Vs Old Home – Safety

New Vs Old Home – Home Maintenance

New Vs Old Home – Energy Efficiency

New Homes vs Old Homes – Energy Efficiency

Categories: Buying a Home, Cost of Living, New Homes, New Homes in Charlotte, New Homes vs Old Homes | Posted: May 12, 2014 | Comments Off on New Homes vs Old Homes – Energy Efficiency

(This is the first in a series on new homes vs. used or existing homes. The differences often are obvious but there are some other things you might want to consider like in this case your true cost of ownership.)

If I offered you a choice, you can: 1) Pay for ice cream and get nothing, or 2) Pay for ice cream and get ice cream, which would you choose?  Not a tough call, is it?

Here’s another one.  If you had the choice of: 1) A home with a nice outdoor living space with screen porch and a gas fireplace you could enjoy, or 2) Pay the same every month for a house with no outdoor living space, Which would you choose? Again, not a tough call, is it?

Sealing every possible place heat loss saves you money and can add features you want to your home.

Sealing every possible place to prevent heat loss saves you money and can add features you want to your home due to the money you save.

Can you believe, however, that every day people choose to forgo the nicer home and pay the same every month for something less? It’s like paying for ice cream you don’t get!

That’s the difference between buying an older home that wastes a lot of energy (read: throwing money away), and investing in a new home that is highly energy efficient. 

Evans Coghill builds all their new homes in accordance with the strict Environments for Living requirements. The energy efficiency built into today’s new homes through Environments for Living can cut your monthly utility bills significantly.  The money you save can be invested in that nice outdoor living space that you can enjoy every day (or any new home feature of your choice), at the same total monthly cost as an older home with no outdoor living space.  Same monthly cost, but you get more for your money!  At todays’ mortgage rates:

If you save:

(Monthly Utility Bill Savings)

Your Additional Buying Power:

(Same total monthly payments)

$100

$20,000

$150

$30,000

$300

$60,000

$500

$100,000

 

That’s right, the same total monthly payment (mortgage + utility bills)  can get you a home that is thousands of dollars nicer! So don’t get cheated out of your nice, relaxing outdoor living space.  Invest in a new energy efficient home rather than an older drafty one, and you can have your ice cream and eat it too, on that nice screen porch!

When considering new homes vs used or existing homes, be sure to factor in the monthly savings in energy cost. The amount you save in a new home may help get you great features like this outdoor living space in your new home.

When considering new homes vs used or existing homes, be sure to factor in the monthly savings in energy cost. The amount you save in a new home may help get you great features like this outdoor living space in your new home.

(Evans Coghill builds new homes in the Charlotte NC area. We are committed to Environments for Living because their guidelines build a much better home. Come see why our homes are different in River Run, Cheval, Springfield or Riverwalk)

New Vs Old Home – There is No Place Like Home 

New Vs Old Home – Paper or Plastic

New Vs Old Home – True Cost of Home Ownership

New Vs Old Home – Avoid the Do Over

New Vs Old Home – Health

New Vs Old Home – Safety

New Vs Old Home – Home Maintenance

New Vs Old Home – Energy Efficiency

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