New Homes vs. Existing Homes
You’ve decided to purchase a new home. Now one of the biggest decisions is whether to buy an existing home or build a new house. So what are the pros and cons of each? Which makes the most sense for you?
The first thing to consider is the upfront costs. While the cost varies depending on your location, the cost of purchasing an existing home will tend to be lower than building a new home. New homes tend to be more expensive due to a few different factors. They tend to be larger than existing homes, there are also numerous customization options, so you can get it exactly what you want, but it will drive up the price. An existing home may come with upgrades you weren’t looking for and that may affect the price, but overall buying an existing home will be less expensive.
The next thing to consider is the maintenance that will be required by both homes. The biggest benefit of building a home is that it’s new. Additionally, most new homes come with builder warranties, so even if an issue does arise, it’s rarely any money out of pocket for a new homeowner. On the other hand, an existing home will need more maintenance, especially depending on when it was built. Older homes are more likely to have issues that arise that need replacement, such as HVAC systems, furnace, or roof. When it comes to maintenance costs, new construction will cost less out of pocket.
Additional factors to consider are the cost of landscaping, energy appreciation, and appreciation. Existing homes tend to come with larger lots that have mature landscaping. New homes tend to have cleared lots that require a lot of care, maintenance, and time to establish a mature yard. Existing homes, especially if they are much older, are not as energy efficient due to older construction such as inefficient windows and older appliances. Most new homes these days pride themselves on being energy efficient. Better energy efficiency results in lower bills. Finally, the benefit of purchasing an existing home is that you are able to track sales and home values in the established areas. You can determine if the home values in the area are rising or falling and how that will affect the future value of your home. It’s much more challenging with new construction, especially in an up and coming area, to determine what the home value trend is in the area. It makes it more difficult to predict what the value of your home will be in the future.
These are just some of the factors that a buyer should consider when deciding what type of home is right for them. Questions or concerns? Contact us today! And remember, with us, advice is always free. Reach us at [email protected]