Old Home Or New Construction

By Kaci Cooper, 23 Jan 19:17

Picture your perfect home. Does it resemble the home you grew up in or does it have a more contemporary design? Do you want something older, with a homey feel or do newer homes that require less maintenance appeal to you? One size does not fit all in the real estate industry.

For the sake of example, let us say that you want a traditional, single family home. The question becomes do you want a home with some history or do want a brand new home? There are positives and negatives to both sides, but it is best to understand both options so you can make the best decision for you.

New Homes
New homes suggest a fresh start. Today homes are built in developments and often they all look the same with a unified style. They tend to be more expensive than resale home of a similar size because they are more energy efficient and contemporary. The following are the pros and cons.

The Positives and Negatives of New Construction
PROS
-Contemporary Style
-Flexibility on design during construction
-Cheaper to maintain (less repairs)
-Cheaper to operate (energy efficient)
-Extended warranties
-Common areas of a consistent neighborhood
-The smell of fresh paint

CONS
-Cookie-cutter design
-Higher price
-Limited negotiation room on price
-Smaller yards (generally)
-Possibility of homeowner dues
-Frequently less character
-Risk of poor construction

However, some of the positives above will be a con for someone else. Therefore it is good that there are some ways to make sure that the house you buy is the house you want:
-Check the builder’s record. Were there good relations between that builder and the buyers? Was the project completed efficiently and on time?
-Do the residents in the area with the same buyer like the construction job?
-You will have to pay extra for the granite counters and surround sound that your perfect home requires, but because you are building it, you can have it.
-Bring your own agent because on-site agents are hired by the builder and that is whose best interest they have in mind.

Finally remember the intangibles. Most developments are created for families and like-minded buyers. Depending on your perspective, these facts could be a blessing or a curse.

Resale Homes
The old charm of previously owned homes lures more people than the seemingly popular new construction homes. Many people want to by these “used” homes to call their own. Existing construction homes are generally cheaper and more available, but they come with surpises.

Positives and Negatives of Resale Homes
PROS
-Availability: more options to choose from
-Lower price: often twenty percent less than comparable homes
-More negotiable price
-Track record: many repairs made
-Established neighborhood

CONS
-More maintenance
-Less energy efficient
-Older appliances and amenities
-Generally smaller bedrooms, bathrooms, and windows
-It has been lived in

There are ways to make resale homes more appealing:
-Have the home inspected. This will limit unpleasant surprises like a faulty foundation.
-Consider counter-offers. For example if repairs need to be made, try to offer that the seller do the repairs in order for you to buy their home.
-Expect the unexpected. Thing break, get used to it.
-Repairs will need to be made either by you or by professionals. This will disrupt your life for a while and some can handle this disruption, while others cannot.

Approach buying a home logically. This will allow you to enjoy your home as much as possible. Make sure that you know what you want and do the research that will allow you to figure out what you want and need. There are positives and negatives to both new home and resale homes and understanding these pros and cons will help you make the best decision for yourself and your family.

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Tags: new construction