The lowest price home can be the most costly. For example, suppose you are faced with a decision as to whether to buy a home that costs $100,000, versus one that costs $120,000. They both have the same square footage. They both look nice. Their appearance is comparable.

Now, lets say you're going to live in your home about three years, then sell it.

The $100,000 house costs less, but is built with low quality materials and components. After three years, it is only worth $80,000. In addition to maintenance and mortgage costs, you pay $20,000 in depreciation costs.

The $120,000 house is built with quality materials and components. After three years, it still looks like new. It is now worth $130,000. The mortgage costs were a little more than the $100,000 house, but maintenance was probably less. Now, upon sale, you have a $10,000 profit instead of a $20,000 loss. The cost of owning this house, over three years, was considerably less. Plus, you had the pleasure of living in a quality home for three years.

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