If you’ve ever bought a new construction or an existing home, there is no doubt you’ve spent money on purchases to help make your new house a home. According to the National Association of Homebuilders’ (NAHB) research, new home buyers will outspend non-movers and buyers of existing homes. Interestingly, buyers of new homes spend on very specific items.
When new home buyers spend more money
Did you know new home buyers in their first year spend more for appliances, furnishings and home alterations? NAHB reports, “During the first two years after closing on the house, a typical buyer of a newly built single-family detached home tends to spend on average $4,500 more than a similar non-moving homeowner.”
Buyers spending returns to normal levels after the first year. Remarkably, NAHB’s data shows, new home buyers do not seem to adjust their other spending - such as eating out, buying cars, or food - in order to afford these purchases for their new home. This may indicate home buyers have budgeted or saved for these items or they deem the items so essential that they purchase them anyway.
What new home buyers spend money on
- Clothes washers/dryers and refrigerators
- Lawnmowers & yard equipment
- Computer hardware & systems
- Furnishings, specifically, living room chairs, tables & sofas
- Exterior/landscape improvements including driveways, walks, fences
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Home furnishings are big ticket items for new home buyers
Did you know that “during the first year after buying a home, new home buyers spend on average $3,778 on furnishings, outspending old home buyers’ 70% and non-moving owners 530%”?
Study data shows, the biggest ticket item for new home buyers is sofas during the first year after moving. But new home buyers don’t stop there. “During the first year after moving, new home buyers spend on living room chairs and tables, outspending non-moving owners and existing home buyers 12 and 5 times respectively.”
When it comes to furnishings for the home’s interior, “new home buyers outspend non-moving owners 10 times.”
New home buyers spend money outside the home
NAHB documents “new home buyers spend $3,729 on average on property alterations, which is several hundred less than buyers of existing homes.”
New home buyers are the biggest spenders of all types of homeowners (new home buyers, existing home buyers and non-movers) when it comes to spending of this type.
Many new home builders sod and landscape a front yard; however, some may leave the backyards, driveways or enclosing of the yard to the buyer.
Money spent on landscape improvements is important to making a house into a comfortable place to live and entertain. It is easy to comprehend that if you have pets or kids, you want to keep them safe, so a fence is generally a requirement. Then you want your backyard to be an appealing outdoor space, so you may add or extend a patio, or deck or even a fire pit.
Planning the timing of your expenditures
For any purchase … whether new or existing it would be wise to consult your builder sales representative or lender. Many people do not realize a major purchase via credit made after being pre-qualified for one’s loan could in fact affect your lender’s loan calculations and possibly your ability to qualify for your loan. You may want to first concentrate on closing on your new home then make your first purchases once you have closed and are in your new home. Though the living room furniture you just found is a perfect fit for your new home it may prevent you from buying your dream home. Best advice consult your real estate professional or lender first.
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