Like used cars, used homes can sometimes seem like a better deal. And like used cars, used homes are often billed as “as good as new.” But like used cars, used homes typically come with hidden costs and unforeseen problems. Roofs leak. Kitchen appliances give out. An older home demands an average of 2 to 3% of its purchase price for annual upkeep — and that list can be never-ending.

When you add up the monthly maintenance and operating costs of an older home, the real cost becomes more apparent. Some costs associated with the normal “wear and tear” of an older home are listed below.

Used Home Hidden Costs

• Remodel bath, mid-range*, $10,500
• Remodel kitchen, mid-range, $15,000
• Replace siding*, $7,200
• Window replacement, $9,700
• Roofing replacement, $11,200
• Remodel home office, mid-range*, $13,100
• High-efficiency furnace**, $4,500
• Paint trim & wall surfaces**, $3,000
• Central air**, $3,000

* Numbers are rounded to nearest $100. Hanley Wood Cost vs. Value based on 2005 National Averages. ** Homespec Home Inspections improvement costs for 2005.

As you can see, that's nearly $77,200 in hidden costs. So when you add your monthly maintenance and operating costs to your monthly mortgage payment (after taxes), you're often paying more to purchase a used home than a similarly sized Veridian home.