Mt. Vernon - Mt. Juliet HomesRE/MAX Carriage House, Mt. Juilet Homes for saleProvidence Del WebEddie Rockensock

New Home or Resale Home?

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This decision is clearly a matter of personal taste for most buyers. For some people, there is not even a discussion on this point. There are those who will only buy older homes, appreciating their unique features, layouts, and designs. These same people are sticklers for hardwood floors, plaster walls, and solid wood doors. Old utilities promise to run forever, and original fixtures give the place a homey feel that they can't find in a newly constructed home.

The new home buyer is looking for something else entirely. Although this individual might yearn for the ambience afforded by the older home, they are overwhelmed by the thought of the upkeep of the older property. The new homes offer floor plans that are more open and livable, and beckon the purchaser to re-design to suit their particular needs. They can still get the hardwood floors, but the wall to wall carpet is easy to care for and offers warmth and a clean beginning to the new owner. The old utilities in the re-sale home threaten break down as soon as the closing takes place, while the shiny new utilities in the new construction come with a warranty that at least promises to carry the buyer through the first several years, if not the first decade. Granted the original fixtures are a little bland, but then that allows for the buyer to apply a decorator's touch when moving in and settling their hew home.

There are many positives reasons to purchase an existing or re-sale home:

Generally speaking, when you buy an older home, you have a pretty good sense of what you are buying. If the floor slants, it slants. There is a history to the house that will tell how it has been treated and whether it will continue to stand the test of time. A professional home inspector is an important party to this purchase decision.

Older homes do tend to have a feel about them, whether good or bad. Those that have been abused are often excellent candidates for renovation and remodeling, which can accelerate the opportunity for equity building. Those that have been lovingly cared for beckon those buyers who are looking for a house that feels like home.

Older homes tend to be located in established neighborhoods. The schools, shopping districts, and public areas are developed and in operation. Although older areas can go through dramatic transitional periods, those trends can often be spotted by the savvy buyer.

Older homes tend to have a more predictable re-sale value. This is akin to the pricing patterns on used cars. The book value is set in a range, meaning the car should sell close to that range based on its condition. Likewise, if you buy an existing home and do nothing with it accept maintain it in an appreciating market, then the value should go up in synch with the market.

There are also many unique characteristics associated with the purchase of a new home:

The new homes can be chosen for their design and layout, according to a buyer's particular needs. The model homes allow the buyer to see the end result, while also encouraging the buyer to make minor changes that will better suit his needs.
New homes are clean. The new paint, carpet, tile, and cabinets all contribute to the feeling of a fresh start. Many people insist on buying new homes just like they buy new cars. They prefer to "break it in", rather than living in a property where someone else preceded them in this task. And a new home is certainly easier to settle in than an existing home, since the property should be delivered with absolutely no sign of wear and tear.

New homes are often located near new service centers. The shops and restaurants are close by and are often built to suit the demographics of the new home community.

A new homes development often brings with it other amenities that contribute to the quality of life for the home buyer such as new parks and playgrounds, a community swimming pool, tennis courts, golf courses, and green areas that are maintained by the developer.

The re-sale values of new homes can vary greatly. The buyer needs to consider how long he expects to be in the house when considering purchasing a new home, especially if the home is in an area targeted for new homes developments. If it is possible that you will be selling the home within the short time frame of a year or two, then investigate carefully to ascertain just how many additional homes will be built in the neighborhood or general area surrounding your property. If you have to put your home back on the market, you will be competing with builders who set their prices according to what the buyers are willing to bear and also according to the quota of homes they need to sell in a given month.

It is very difficult for the seller of an almost new re-sale property to compete with a builder who is willing to upgrade carpets, add appliances, put tile in the bathrooms and cut their price just to move a few houses. The only way for a seller to compete with this type of situation is to reduce their price enough to draw the buyers who are shopping for the new homes. This could easily destroy whatever appreciation the house realized during its year in ownership. If at all possible, buy a new home that is the last model in a particular development, or is one of the last houses built in the new homes area. Then if you have to sell unexpectedly your property stands a better chance of holding its value even in the midst of a building boom.

 


 


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