Is the new build really more expensive?
Sticker price is the wrong comparison. This runs the honest total cost to own — financing, upkeep, HOA, special assessments, and energy — for a new build versus a comparable resale, over the years your buyer actually plans to stay. Adjust every number to your deal.
New build vs. resale — true cost to own
Honest total cost over the hold — financing, upkeep, fees, energy — so your buyer compares the two on more than the sticker.
Example deal — change any field to your buyer’s.
Starting points, not claims. Defaults assume an older resale needs more upkeep and a new home runs a bit cheaper — change any number you can’t stand behind.
| Sell in… | New build | Resale | Difference |
|---|---|---|---|
| 5 years | $574,198$9,570/mo | $587,316$9,789/mo | $13,118new build less |
| 7 years | $628,327$7,480/mo | $654,006$7,786/mo | $25,679new build less |
| 10 years | $705,929$5,883/mo | $750,486$6,254/mo | $44,556new build less |
Total cost to own over the hold = payments + payoff at sale + upkeep + HOA + special assessment + energy, 30-yr term. Excludes down payment (returns as equity) and appreciation. Lowest wins. Estimate — not a lender quote.
Comparing the $500,000 new build (after a $20,000 builder incentive) against the $460,000 resale, both at 10% down over a 7-year hold: the new build runs about $7,480/mo all-in vs. $7,786/mo for the resale, so the new build comes out about $25,679 cheaper over those 7 years. That uses your own estimates — 1.25% vs. 0.5% of price/yr for upkeep and about $40/mo less to run the new home — so adjust them to your deal. It excludes appreciation and your down payment (that comes back as equity).
Straight about the math
This is an estimate, not a lender quote. Total cost to own = payments + loan payoff at sale + upkeep + HOA + special assessment + energy, on a 30-year term. It excludes your down payment (that comes back as equity) and appreciation (both homes are assumed to track the same market). The upkeep and energy figures are your inputs with sensible starting points — change any number you can’t stand behind. No builder is favored; the result is only ever as honest as the numbers you put in.
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