Buying New vs. Resale Home
One question that I get a
lot is, "Should we buy a new home or an existing home?" A
new home is one that has never been lived in while an
existing home has been lived in by a previous owner. There
are Pros and Cons either way that you should consider. Here
home buying tips for
purchasing a new versus resale home.
PROs for Purchasing
a New Home May Include:
Lower maintenance costs
during the first years of owning the home.
Lower energy costs because
new homes are built with better energy saving materials
and equipment than older homes.
More functional home
designs and floorplans as well as up-to-date home
Latest technology features
such as pre-wired for a home computer network.
Possibly the ability to
choose paint colors, floor types and colors, exterior
colors, and other optional home features.
NOTE: There is
typically a substantial markup on these items.
PROs for Purchasing
an Existing (Resale) Home May Include:
Lower price per square
foot than newly built homes.
Better locations and
shorter commute times.
Mature landscaping in both
the yard and throughout the neighborhood.
Proven track record of
home values in the neighborhood.
Lower tax rates since more
neighborhood features have already been paid for by home
Sales contracts that are
fair to both parties...not one-sided in favor of the
Lower move-in costs
(possibly) since home already has window coverings,
landscaping, garage door openers, and other items that
you will have to buy for a brand new home.
Easier for home inspector
to find home defects because more time has passed since
the home was constructed. NOTE: New homes may have
hidden defects that are impossible for a home inspector
More established school
zone boundaries than for new neighborhoods.
activities and events.
Quicker move-in date
compared with building a home from scratch in a new
If you decide to buy a new
home, make sure that you check out the builder first: http://www.jdpower.com/homes
Also make sure that you hire an inspector (read
for more information).
And don't forget to bring your Realtor along when you view new home
models! Remember: A Realtor's job is not "just" helping you find a
house to buy...there are over 100 tasks that Realtors may perform for
you during the home purchase process! Your Realtor should be on your side because
she is your agent. The
salesperson at the builder's model home office is not on
your side...as an employee of the builder, he or she is
looking out for the builder's best interest.
Before you decide to buy a
new home, make sure you get up-to-speed on new home
builder's warranties at http://www.fairarbitrationnow.org/content/home-court-advantage-how-building-industry-uses-forced-arbitration-evade-accountability (scroll
to the bottom and then click "Read the Full Report."
You will also find these
I don't want to discourage
you from buying a new home...Houston has some really great
new home builders. But it's my job to make sure that you
have all the information that you need to make a wise buying
Insider Secrets Revealed
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