If you’re considering a new home in New Jersey, you may be balancing your options between buying an existing home and building a new home. Conventional wisdom has generally held that it’s less expensive to purchase an existing home than it is to build a brand new home of the same size. That may be true if all that you’re considering is the initial cost of the home. But it begs the question as to whether cost or value is more important for a new homeowner. 

Let’s take a brief, but closer look at that question. It actually raises additional questions. How can you be sure you’re comparing apples to apples when evaluating houses? If your only criterion is square footage, then perhaps an existing house will hold an edge financially. But you have to ask yourself, “What about the quality of the house?” Is the design something you’re thrilled about? Does it match your lifestyle? What about features in a new home that you simply can’t find in an older home? A new home allows you to make personal choices about finishes and colors. If you buy an existing home and don’t like the finishes or the colors, you have to take care of that yourself. And that costs money. 

Here’s another quality issue. Homes built today are much more energy-efficient than homes built even 20 years ago. The money you spend on utilities to heat and cool your home can quickly eat into any price savings on the home. And that won’t change until you invest money to upgrade the older house. Of course heating and cooling are just the tip of the iceberg. Everything in a new home is new. You won’t need to replace appliances, flooring, or roofing for many years. 

However, not every aspect of value has a financial price tag that you can attach to it. Is there value in being able to choose the exact floor plan you want instead of adapting your wishes to an existing plan? Absolutely! Does moving into a new neighborhood—where everything is current and the infrastructure is new worth something? Without question! And how can you put a price tag on knowing that you’re the first person to use the oven, the stove, the refrigerator—or even the garage door? 

Cost and value may be related, but they’re not the same thing. So when you compare the money you spend on a home, make sure you balance that with the value and benefit you get for your money.