Choices: A new or existing home
There are pros and cons to a new-construction home or existing home, so the decision may not be that easy as you consider a home purchase. No matter which way you go, you’ll probably end up making trade-offs. In the end, choose the type of home that makes the most sense for you, your lifestyle and upcoming plans.
From an investment standpoint, it is wise to think about the future when buying. After all, you will be the seller one day and will no doubt want to get the largest possible return on your investment. What if, for example, a home is one of the first in a new subdivision. As
other houses are still being built, short-term resale of a two-year old house can be difficult. Given two similar choices in the same neighborhood, most buyers opt for a brand new house as opposed to one that’s been lived in. Additionally, builder incentives can make the new home down the street more attractive to buyers. This typically changes as the neighborhood matures and the builders leave.
It’s not all about the investment, though. You must live in this home. Central air, large pantries, walk-in closets, multi-car garages, more and bigger bathrooms and other contemporary amenities are more common in newer homes. Not many 40year-old homes feature a master suite with a spa and two walk-in closets.
New homes are also built with infrastructure tailored to modern life — like having more electrical outlets or being prewired for security or Internet. Additionally, there are stricter building codes and significant advances in construction materials and techniques. These improvements result in safer and more energy-efficient homes.
Also, the builder may offer customization options, like color schemes, flooring, kitchen cabinets or appliances, that allow more personalizing. Existing homes were built and designed to someone else’s standard and taste, which is bound to be different from yours . Also, keep in mind that many builders offer buyer incentives if the buyer chooses their corporate affiliated home-mortgage lender. Earlier this year, supply chain problems delayed the delivery of some building materials, slowing the home construction process. That situation seems to have improved in many cases.
On the flip side, many older homes have a charm from the period during which they were built. Some sit on larger parcels of land than the lots common in most new subdivisions. You also may find an existing home remodeled in a way that suits your needs perfectly.
Home maintenance comes with home
ownership. There is no house that is maintenance- or defect-free — even brand new homes. In fact, it’s not uncommon to find at least one construction defect that must be addressed in a new house. So, if you do opt for a new home, make sure you understand the warranty and the process for identifying and fixing problems. As with the purchase of an existing home, buyers should have a new home inspected by a licensed third party inspector prior to closing. Home inspectors will very likely find items that need attention and which can be easily remedied by the builder.
The neighborhood should be a part of your decision. Consider what you value — school district, proximity to your workplace, and day-to-day convenience are common concerns for most people.
Jennifer Wauhob, with Better Homes and Gardens Real Estate Gary Greene — Katy, is 2022 chair of HAR/HAR.com.