With their belongings neatly stashed in cardboard boxes, the Smiths entered the market for a new home. The scenarios played out before them. Unsure whether to choose a new home or existing home, they sought out the help of a Realtor and a home builder.
Each tossed their own pitch onto the table – the advantages of a newly constructed home vs. a house that already exists.
Home: They both are. The Smiths don’t exist, but the dilemma is real.
New homes generally come with steeper price tags, but offer more amenities. Homes are becoming increasingly wired for technology, including multiple phone lines and more advanced electrical wiring. A home can be built to suit the wants of the buyer. Better lumber, more energy-efficient appliances, custom wiring, and improved insulation can be advantages for new homebuyers. New homes generally require less maintenance as well.
Some question marks associated with a new home purchase can be cleared with an existing home.
For a homebuyer putting costs over conveniences, purchasing an older home is an option. Existing homes often relieve the buyer of purchasing appliances, such as refrigerators and microwaves, which often are left behind by the previous owner.
Landscaping and established yards are another plus for an existing home. In an established neighborhood, homebuyers can meet their would-be neighbors. The character of an existing neighborhood often differs from that of a new development area.
Inquiring into schools, police presence and other aspects of living in a neighborhood also are possible. You might go into a subdivision and be the 10th house out of 100 and you’re not sure what’s going to happen. Existing homes often come with lower price tags because the buyer is paying past prices for labor and building. More negotiation in price also accompanies an older home.
Homebuyers should take personal preferences into account and examine the perks associated with both options. Low interest rates and appreciating home values should have little effect on whether a homebuyer chooses a new or existing home.