New builds - how much less maintenance and capex?

Question

I was wondering if someone who owns both new builds and non-new builds has done the comparison as to how much less I can expect to pay in maintenance and capex for the new build?

Also, does anyone have experience with buying homes from Rausch Coleman?Your feedback is much appreciated

Nathan Brown · Answer

I've found with my clients, it's best to assume there's no difference between maintenance budgets on old vs new. Even if the house has a builder warranty, stuff happens and there's still always little things that are just easier and quicker to address out of pocket.

Bill B. · Answer

It really depends on your “used” inventory. My used inventory in Vegas was 5 years old give or take when I bought it. Now it’s 20 years old. With a sampling size of only a dozen properties I would say the average maintenance was one appliance every few years. Zero roofing, zero exterior, 50/50 chance of a new ac unit in 15 years, and a water heater every 8-10. So call it $270/yr if the ac doesn’t go bad, $570/yr if it does.

Now those numbers mean NOTHING if your used inventory is 70 year old, asphalt shingled, asbestos insulated and lead painted properties in Hurricane, tornado or snowstorm regions.

I assume my new builds will be zero maintenance for the first 15 years. So I save $270 year plus the possible $300 ac failure. I didn’t buy my first new property ever because of deuces maintenance but because they dropped from 20% more than existing inventory to 5-10% more. So I get better insulation, better layout, better overall condition in a newer neighborhood full of new buyers with a loan the builder bought down the rate in to make the costs even closer to existing. Combine that with almost zero used inventory it was a first time ever decision that was really a no-brainer.