New vs. "Existing" home how to decide

12.02.07 - 03:56pm ::

Each has it’s own set of pro’s and con’s and only you can decide which is best for you and your situation.
In some cases, you can find a “new” home that is move-in ready. We call these spec homes. Most likely you will need to construct the home from the ground up. I have built 2 homes new and bought a spec home, and I have to admit that it is nice to have a home that no one has ever lived in. I have also purchased 2 existing homes and they had their advantages too.
With “New” homes, everything is new and comes with warranties. If the microwave blows or your toilet leaks, the builder comes back out to fix them. With existing homes, you’re on your own for any repairs. The new home should not require any major upkeep for a number of years. The existing home might easily need a new roof or air conditioning unit fairly quickly.
“New” homes tend to need lots of landscaping. The builders normally only put a few bushes out front leaving a naked backyard. Existing homes will have mature landscaping with much larger trees. The new homes in our area tend to be on very small lots, some only 0.12 acres. Many of the existing homes at least 5 years old are on much larger lots –0.3 and higher.
When you buy a “New” home, you are taking a chance that the neighborhood will continue to develop the way it is presented to you in the sales office. With an existing home, you can see the end results.
“New” homes don’t have any window coverings and it’s expensive to buy blinds for 32 windows! Existing homes almost always have window coverings in place. You might not like them, but at least you can shower and dress in privacy until you get them replaced.
Let’s not forget the time constraints. If you have a set date by which you need to move into your home, building a “New” one is probably not a good option for you. It’s very common for construction to run longer than promised. I’m being too kind here – it USUALLY runs over. If your timeline is flexible then you are in good shape to buy “New”. If not, buy existing.
If you’re looking at the home strictly as an investment, buy “New” and in the first phase of building development. You’ll have instant equity by the time you occupy the home in most cases. This is due to the fact that builders tend to raise prices as they go further along in developing the neighborhood. An existing home may take longer to increase in value, but that is not always the case. Your real estate agent can help you decide the best choice for you.