It’s a choice that every new home owner will eventually have to make: do you buy a brand new home or an existing home? Many factors can steer you in either direction. If you’re an investor, you may want to purchase a new home to take advantage of potential appreciation on the home. Then again, you may want to pick a house built in an area that is attractive to future buyers should you eventually choose to sell. Regardless, it is important to choose a home based on your needs, immediate and future, and something you should discuss in-depth with your real estate agent.
New Homes
Pros:
- New, never-been used appliances and amenities like stove, bathroom, etc.
- Possible increase in value over time up to 200%, depending on area development
- Easy remodeling
- Up-to-date technology in the home (i.e. cable, wiring, plumbing, central air and heating)
- Qualify for FHA loans and federal tax credit
- No anticipated structural damage
Cons:
- No guarantee on the quality of construction from the builder
- May need to travel long distances for gas, groceries, entertainment, etc. until area develops
- Many of the more attractive areas with a view or near a major urban hub have already been taken
- Higher price than older home
- Harder to re-sell, unless the value has appreciated for a few years
- Flora & Fauna will take time to propagate
Existing Homes
Pros:
- Choice of well-established areas with urban hubs and public transportation
- Cheaper price than newer home
- Easier to sell than a new home
- Homey appeal with character and style (i.e. older, period homes)
- Mature Flora & Fauna
- Lower taxes than a new home
Cons:
- Unanticipated structural damage
- Hidden, unforeseen problems not communicated by the seller
- Typically less energy-efficient
- Less technologically advanced
- More maintenance required on aging utilities and amenities
