Should You Buy An Existing Home Or A New One?

There certainly are a lot of variable to consider, and decisions to be made when thinking of buying a home, not the least of which is whether to buy an existing home or a new one.  Just like anything else, each choice has its pros and cons, and what is right for one person or family may not be the right decision for another.  So where do we start?

New Homes

I often have people ask me why New Homes sometimes seem to be less expensive than existing homes.  This is not normally the case.  You have to keep a few things in mind from a cost standpoint. 

• One of the most obvious factors is that a new home usually does not come with a landscaped backyard!  This could be a significant cost, especially if the property is hilly or you plan on putting in a pool.  If you plan on doing the work yourself, well that's a whole different ball game.

• The other major factor is what I like to call "The New Car Factor".  Buying a new home is just like buying a new car.  The dealer advertises the base model at a great price, but by the time you are done upgrading the stereo, upholstery, etc, the price is quite a bit more.  Its the same for a new home, they advertise the base price which includes plain white tile, linoleum, molded sinks, and the worst carpet around.  This does not even include the "Lot Premium" many builders charge for the better locations within the subdivision.

Lets look at a couple of examples that are kind of hidden costs:  

(A)  Lets say you want to upgrade to a solid surface kitchen counter, and mount the sink underneath for cleaning convenience.  The base sink will only last you a few years before it needs to be replaced.  You would have to rip out the entire "very heavy" counter in order to do that.  So you end up upgrading the kitchen sink as well.

(B)  Lets say you want to put a tile counters in the three bathrooms.  The standard counter and sink are molded together.  So not only do you have to upgrade the tile, you also have to buy three bathroom sinks.

Existing Homes

Now don't get me wrong, there are advantages to moving into a new home.  Everything in the home and neighborhood is nice and new, clean, and typically in a good area.  But there are also many advantages of getting an existing home.  The most obvious to me tends to be the maturity of the landscaping in the neighborhood.  So  many people choose and existing home because they don't like to look out at a five foot stick that will one day be a tree. 

• One of the major "potential" drawbacks to an existing home is that of maintenance.  You need to do your homework during the inspection period to make sure you are not inheriting a lemon.  Of course you will always need to do some upkeep on any home you own, but probably a little more on an older one.

• I would also be prepared to do some painting, and perhaps even replacing some carpet - it all depends on the home.  Of course, you may be doing this in the new home as well!

Remember that Real Estate is market driven, it is powered by supply and demand.  All else being equal, and taking all factors into account, new and existing homes will probably be priced relatively the same.  All things considered, you may need to look at both existing and new homes during your search to see which floor plans, amenities, and neighborhoods you like the best. 

What you may not know is that most builders and developers will cooperate with Real Estate Professionals.  I encourage you, therefore, to contact me so that I may guide you through the oftentimes confusing process of purchasing a new home.  I can SAVE YOU THOUSANDS OF DOLLARS during the negotiations, and during the process of choosing upgrades!  For more information about the purchase of a new home, please call me for a consultation.