Look at the scenario of the Bob and Ann Johnson. The Johnson’s entered the market for a new home and unsure of whether to pick a new construction home or existing home, they sought out the help of a real estate agent as well as a home builder. Since most real estate agents work both resale properties and new construction homes they found their agent was able to give them the most unbiased opinion. They soon found that they are obvious advantages and disadvantages of both.
Here is what the Johnson’s found out about new homes. Depending on the area, new homes generally come with higher price tags, but offer many more amenities and upgrade options. Since technology is always advancing new homes are becoming increasingly wired and built for more modern technology, including multiple phone lines, cable outlets & more advanced electrical wiring. Custom wiring & improved insulation can be just a few of the advantages for new construction homebuyers. Do you want granite countertops? Do you want carpet or tile? How about a covered patio? So a huge advantage of buying a new home is that it can be built to suit the wants and needs of the buyer. New homes also generally require less maintenance as well.
In many cases new home construction is easier to finance. Because the home is new there generally are fewer problems with appraisals and inspections. While builders are no longer able to offer (legally that is) financing incentives like they used to do, most still have on site mortgage lenders. However it is always wise to shop around when looking to secure financing. You may find outside financing is the way to go even when purchasing a new home.
Well, the new homes were very appealing to the Johnson’s however they were a little price conscience. They found for the homebuyer putting costs over the conveniences and multiple options of a new home that purchasing an older home remained a very attractive option for them. Existing homes often relieve the buyer of purchasing appliances, such as refrigerators & microwaves, which often are left behind by the previous owner.
Landscaping & established yards are another perk for buying an existing home, provided it has been well maintained. It’s never a bad thing not having to wait around for the grass to grow as one does when buying new construction.
Another benefit the Johnson’s found was that in an established neighborhood, homebuyers can meet their would-be neighbors. The character of an existing neighborhood often differs from that of a new development area. Inquiring about schools, police presence & other aspects of living in a neighborhood also are possible in an established neighborhood. When you buy a home, you are also buying in to a community. The neighborhood location you pick is three of the biggest aspects of buying a house
The quality of construction also is very evident in older homes. If a home was built with cheap materials and shoddy construction, it becomes very apparent on a home that is 5 years old or older. All new homes look great when the material is new, however if poor materials were used it doesn’t take very long for paint to fade and other things start falling down. So the Johnson’s found this to be an advantage of looking at the resale market because with an older home they could tell what they were getting.
After giving it much thought the Johnson’s decided that the advantages of buying a resale fit their personal situation the most. Since they were also price conscience and found that there was more negotiation room in the price with resale homes, that added extra incentive for them to look on the resale market for their next home.
Generally you can find deals in both if you look hard enough. Your situation may be different than the Johnson’s. As always the most important thing is to start off by working with a real estate agent that knows the local market and a good loan officer that fully understands the current mortgage market.
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