New Homes Vs Resale(used) Homes

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New vs Resale(used) Homes

 

 

New Home Purchase Pros and Cons

  1.  Everything is new!  You will know about how many years before things need to be replaced.  Without the guesswork of what the previous owner repaired You are starting from scratch and can find out life estimates of the various new home components.

  2.   The new home should come with a warranty.  Check with your builder prior to purchase.  It is common the see a 2 year warranty.  With the first year being the whole house and second year major components like electrical and plumbing.

  3.  Your Realtors costs are included in the price.  If you use a realtor you pay the same price as if you do not.  A decent Realtor adds tremendous benefits to your new home purchase.

  4.  The ability to choose the lot and pick the new home model type along with colors and other customizations.

  5.   Possibly a discount by the new home builder.  If the area is selling slow or its is the first phase of a community you may get in for less.  Communities can have several phases over years with hundreds and thousands of new homes built

  6.   Incentives.  This can be something like free or reduced closing costs.  Free or  upgrades at a certain value or pool benefits.  The more homebuilders in the same area the more competition for new construction home business.

  7.   Homeowners association.  This can be good or bad depending on your needs.  The HOA will also change when the builder leaves the community or the phase.  Its common for the residents to take over and elect who is in charge.

  8.   The new home will be built with the latest building codes for your location.  Codes are always changing.  Building codes improve upon safety and building integrity.  Your new home will be built with the most recent standards.

  9.   The new home has everything new so if you have a mortgage it should require less repair.  For example.  If you have a 15-30 year mortgage and your roof last may 15+ years + depending on roof type (Asphalt Shingle, Tile), and your Air Conditioning possible 10 years.  Compared to buying used homes with unknown estimates. 

 

Resale Home Purchase (used) Pros and Cons

  1.  Lower price.  If new home construction is in the area the resale market for the same size home may cost less.

  2.  Possible further price reduction from negotiation.  Remember each home is being sold by its respective owners and each owner has a different story for moving.

  3.   The resale home is ready to move into.  No waiting to be built.

  4.   The potential purchase price savings can be used for renovation.

  5.   The community may be fully developed.   You can see the finished product.

  6.   Buying a fixer upper can be a cost effective way of saving money by doing it yourself.