Should You Buy a New Home or Used Home?
When deciding to purchase a new home sometimes the decision becomes whether or not to buy a brand new home or one that has previously been owned. The differences between the two should be considered thoroughly before deciding which way to go.
First we should consider price between the two. In the current real estate market there are short sale homes and foreclosures on the market that will be a far better price than a new home. It seems strange that a brand new home in the same community of one that is a couple of years old will sell for much more than the home that has been previously owned. New homes are not consider a comparable so they can sell for a lot more and there are no appraisal issues. Somehow this does not seem right when a previously owned home might have window treatments, ceiling fans, landscaping and even a pool or spa which a new home usually will not have these items.
However, a new home is just that, new, under full warranty and in perfect move in condition. You will need to add to the equation the cost of the things that are not in the home already or the fact that there is no backyard landscaping. Still, many people are finding that they prefer a new home over the others and builders are selling very well even in the current real estate market.
Another huge factor will be location and you will likely not find a new home in an area close to work or other major amenities like the airport or downtown. Land around those areas have long been gone and you will not find new home builders close to these areas. As a city grows, it grows outward and new homes and commercial developments that are newer must go outward. This is always a consideration for many homebuyers. Traveling time everyday to work can add up with gas prices and simply the time that it might take to travel both directions.
Another thing to consider when you are buying is the home that is not new may still need some updating which will offset the cost of putting in new things to the brand new home. You may need fresh paint, maybe you will want to change to granite counters or change to newer appliances. You really need to calculate the differences between what things need to be changed or added to both types of homes.
For the most part in a new home you will not know your final price until after you finish picking out your upgrades at the design center. This could add up to a good twenty percent more than the base price.
Take your realtor with you the first time you visit a new home or have your realtor to the foot work on this information first. They should know a lot of questions to ask about that you may not know and you should know before making the decision to sign a builders contract.