Everyone always debates whether they should rent or buy
their next home. With the housing market as unstable as it has been people are
trying to buy when it’s good and save when it’s not. But when the time is right
and you ARE ready to buy what are the pros and cons to a new home versus a used
one? Whether the economy or market is high or low, good or bad, the decision to
buy new or used is a personal one.
Below are a
few pros and cons in the own-resale/new-used
debate according to Bankrate.com:
Locale: The
oft-recited real estate mantra of "location, location, location" is
still relevant. Most older, established neighborhoods are in the town's center,
which can be good or bad depending on the vitality of your urban area. New
subdivisions -- and newer schools -- are generally on the outskirts. But the
expense of a daily commute is one factor that many buyers forget to consider,
Edelman said.
Price: Existing
homes are usually less expensive per square foot, in part because of escalating
land costs in new subdivisions. But ownership costs are considered more
predictable -- almost inevitable -- in a new home, especially considering the
cost of a code upgrade or remodeling of a vintage home. Some builders will
include closing costs as part of their price of a new home, although that
builder has a set amount he must get from that home to make a profit. Price is
more readily negotiable for an existing home. Also, a hidden cost in many new
subdivisions is a homeowner's association, with mandatory fees and other
assessments as well as architectural controls that may surface at remodeling or
expansion time. Do your homework.
Move-in
complications, advantages: The resale(used home) is sitting there waiting
for occupancy, warts and all. But the wait for a new home can seem
interminable, though the buyer can check on quality control as it's being
built. If your finished house is among the first in a new subdivision, prepare
to navigate through construction teams and precariously misplaced nails for
months on end. And don't forget that daytime hammer serenade.
Neighborhood:
"People moving into new neighborhoods are more homogeneous -- the same
things that appeal to you also appeal to others like you," says author
Edelman. "When a development goes up, it offers an opportunity for you to
help create your own neighborhood lifestyle. If you want to move into community
where your children have lots of playmates, that may be for you." In an
older community, he said, people have moved in and out over the years and you
tend to get more diversity of neighbor backgrounds that include older people,
singles, families and renters.
Living space and
design: Lower building costs of the past mean more home for the money for
the buyer of a resale. Resale basements may have been finished out nicely for
additional living space. On the other hand, new-construction homes often employ
more efficient, innovative uses of square footage and property. Also, newer
"zero-lot-line" developments offer more living space per square foot
than a same-size lot that surrounds a resale.
Customization: In a new house, you
can pick your own color schemes, flooring, kitchen cabinets, appliances, custom
wiring for TV's, computers, phones and speakers, etc., as well as have more
upgrade options. Modern features like media rooms, extra-large closets and
extra-large bathrooms and tubs are also more attainable in ground-up
construction. In a used home, you rely largely on the previous resident's
tastes and technological whims, unless you plan to farm thousands into a
remodeling and rewiring. Be warned: It's unwise to wallpaper for at least one
year in a new house until it settles, says Edelman. The wallpaper will tear.
(But it is OK to paint.)
Character: While
many new homes are built in "contextual" style, which blends elements
of the old and the new, it's still hard to emulate a pre-Civil War house in New
Orleans, a Victorian home in San Francisco or a brick Row House in Boston.
Hardwood floors, vaulted windows, high ceilings, built-in cabinetry and other
design nuances express a certain individuality in older homes that's nearly
impossible to copy. Many new-home buyers believe they put the character in
their own homes.
Safety: Builders
have to follow very strict guidelines in new-homes and additions, especially in
the West and Northwest, where earthquake safety standards must be observed. In
general, new homes are usually more fire-safe and better accommodating of new
security and garage-door systems.
Landscaping:
Mature trees, robust shrubs, gardens, rose bushes and perennially well-watered
lawns are some of the rewards of an older home, while most new homes are apt to
yield wee trees, fewer walkways and sparse vegetation. Landscaping is an
expensive proposition today for the cost-conscious home builder.
Energy efficiency:
Advantage: new construction. Game, set and match as well. New-home designers
can use new building materials such as glazed Energy Star windows, thicker
insulation and other technology that will lower future energy costs for the
owner. Most states now have minimum energy-efficiency requirements for new
construction. Kitchens and laundry areas in new homes are designed to house
more efficient energy-saving appliances. Older homes, unless they have
undergone an energy retrofit, usually cost much more per square foot to
air-condition and heat.
Amenities: Many
new subdivisions offer neighborhood clubhouses, swimming pools, playgrounds,
bike and jogging trails and picnic venues for residents. Older homes don't,
although many have better access to urban shopping venues and restaurants
because they're part of old, self-containing city-planning philosophies.
Maintenance: The
charm of an older home often goes hand in hand with increased maintenance,
especially if the previous owner(s) were not vigilant in upkeep. Building
materials may be harder to replace or match in an expansion or remodeling. New
homes generally come with at least a one-year warranty for the repair of some
problems that develop as it settles into its foundation. But know what your
warranty covers. Many are elusively written.
Taxes: Newer
homes tend to spring up in less-developed, outlying municipalities, which may
impose higher taxes on you because they're subsidizing fewer inhabitants than
the central metropolitan area. Your community will still need fire and police
coverage, sidewalks, sewers and probably a new school. A more established home
in a built-out area has a little more predictable tax structure.
With all these factors considered your home is only YOUR
home- My goal is to make sure you find that perfect fit, new or used. Feel free
to contact me to discuss any pros or cons or concerns you have with your search
for your ‘new’ home!
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