Home prices are rising and today’s mortgage holders are reaping the rewards. A reward of nearly $457 billion collectively, to be exact.According to Corelogic’s 2019 3rd Quarter Homeowner
Pros & Cons To Buying A New Vs. A Pre-Owned Home
There are pros and cons to buying both new and used homes. New homes offer brand new everything and less maintenance while used homes can offer better value with a touch of charm. Depending on your budget, style, and preferences the best option for you will vary.
Trying to decide if you should purchase a new or used home?
Here Are Some Important Pros And Cons To Consider
Pros Of Buying A New Home
Most new home builders give buyers the option to customize everything from cabinets, countertops to floors. This means you get the closest thing possible to your dream home without building it from scratch.
When you buy a new home it is built using the newest materials and styles out there, giving you the look in the latest issue of Southern Living. This saves you money from the get-go in renovations.
Fewer maintenance costs
The older a home the more maintenance it needs. The appliances may need to be replaced, the AC coil cleaned, re-plumbing drain lines, and the list goes on and on. A new home gives you a considerable period of time before repairs start to add up.
Newer homes are built with energy efficiency in mind, helping you save on monthly bills while simultaneously reducing your ecological footprint.
Enjoy the comfort of extended warranties
New construction comes with extended warranties on appliances and other features.
Easier to make your own
A brand new home gives you the chance to infuse the space with your distinct style without dealing with someone else’s style.
Cons Of Buying A New Home
Less negotiation power.
There’s not much room for negotiating on a new home. The listed price is pretty close to what you can expect to pay.
Homeowners’ association fees
Many new neighborhood developments come with an HOA, homeowners association. This can be a bonus in terms of keeping overall neighborhood values up to but it means more money out of pocket in fees and monthly dues. Important to note, used homes often have association fees too.
New neighborhoods tend to come in cookie-cutter form, which appeals to some but not all. Many new home developments offer only a few different floorplans, which means a few of your neighbors may have the same floor plan as you.
No history or charm
Some people prefer a home with historic charm, in which case a new property may not do it for you.
Pros Of Buying A Used Home
More variety and options
There are a lot more used homes on the market, giving you ample options when it comes to location, style, and so forth.
More negotiable price
It’s often easier to negotiate the price on a used home for a variety of reasons, such as the need to renovate the kitchen.
Problems are disclosed
The disclosure documents reveal any issues with the property, clueing you into exactly what you are getting into.
Moving to a more established neighborhood
A used home in an established neighborhood has already developed its character, reputation, and mature landscaping; therefore you are getting exactly what you see.
The value of historic charm
Older homes are full of unmatched history and charm.
Cons To Buying A Used Home
Factor in costs for additional maintenance
A used home is going to need renovations, maintenance, and upgrades that will ultimately cost you money.
Not as energy-efficient
Some used homes include energy-efficient upgrades, but most are not as energy efficient as new homes built to the latest standards.
The need to change outdated elements
Outdated designs, older appliances, and other features may require updating to bring the home up to your style standards.
Someone else has lived there
One or more families have put wear and tear into the home that you are now responsible for.
Reduce risks associated with buying a used home by:
- Conducting all inspections during the escrow process.
- Offer a counter-offer based upon repairs you’ll need to make to the home.
- Be prepared for anything and everything from leaks, faulty electrical work and so forth. If the problems are too much for you to comfortably handle, move on to the next property on your list.
Curri Properties works tirelessly as your trusted agent and friend. We vow to stop at nothing when it comes to finding you the perfect home, new or used.