Your next Home!
Should You Buy
New or Resale?
It used to be that new homes cost more than older homes, but that’s not true across the board anymore. As land costs increase, the size of new home lots have shrunk. One can practically crawl fro m a bedroom window and into the window of the home next door. Homes are that close in proximity.
Another reason today’s construction is cheaper is because it’s less expensive to use 2 x 4 pine framing or engineered wood over 2 x 6 redwood and to use drywall instead of plaster. Buyers who look at inner-city homes in desirable neighborhoods will find, on average, larger lot sizes, and the homes will cost more than entry-level new homes being developed in new subdivisions outside the city.
Here are advantages and disadvantages to consider when determining whether you should buy a newly constructed home versus a resale.
Advantages to Buying a Resale – Some Have Old World Construction
Older homes have stood for decades (some centuries) and have weathered many storms. Some were built by hand by genuine craftsmen, with meticulous attention to detail.
Larger Lot Sizes
Years ago, when land was cheaper, builders built on larger lot sizes.
More Character
Craftsman bungalows originated in California in the 1890s, but now they’re ubiquitous across the U.S. Other popular styles are Victorians, Greek Revivals, Tudors or Colonials. Interesting architectural features are abundant in these homes such as arches, hand-carved decorative appointments, stained glass windows.
Established Neighborhoods
Zoning changes are unlikely to occur in older established areas.
Mature Trees and Vegetation
It is not uncommon to see 100-year old trees providing canopies in yards and on boulevards. Often people do not like to buy newly constructed homes especially in new areas or subdivisions as the properties and surrounding area looks barren and it can take years for trees and vegetation to grow.
Some Disadvantages to Buying a Resale
More Maintenance
If it were a “perfect” house, everything would fall apart at the same time. But things tend to go wrong periodically, and there’s always something to fix. Also, when buying a home that someone else has previously owned, most people would like to at least go in and paint to
“make it their own”.
Renovations Can Be Expensive
Renovations to major items such as electrical, windows, kitchens, bathrooms, heating sources, roofing etc can be very expensive to replace. Often people will choose to purchase a resale that has been completely or partially renovated or if they are willing to take on a
fixer upper can usually get a good deal on a home.
It Is What It Is
With a resale home, what you see is what you get in terms of square footage, number of rooms, bathrooms etc. Most often, major renovation is required to change this.
Advantages to Buying a Newly Constructed Home
Little Maintenance
New construction is meant to last for a while, so new home owners are not likely to install a new roof or replace the water heater or furnace for quite some time.
Modern Conveniences
Many items are standard such as built-in dishwashers, microwaves and wine coolers; they feature master suite baths, work-out and media rooms; wiring systems are networked etc.
Builder Warranty
Generally builders are required to give a warranty and this may vary from state to state and be different in the US than in Canada. The first line of defense is to buy from a reputable builder who will agree to stand behind the structure and its components.
Energy Efficiency
Many homes are built with solar panels that can turn back the electric meter. New appliances use less energy. Walls, ceilings and floors are insulated. Dual pane windows retain more heat in winter and keep the home cooler in summer.
Built to Code
Code regulations will change all the time. Consumer safety issues are continually addressed in new construction and conform to building codes.
Emotional Factor
Let’s face it, there’s nothing like owning something that’s brand new, never been used, whether it’s a car or a home.
Choose Your Own Design
Whether you are custom building a home or choosing from a number of builder’s plan options, you are able to choose your square footage, number of bedrooms, bathrooms, size of kitchen etc. You are also able to choose all of the interior items such as paint color, flooring, cupboards and vanities and counter tops.
Drawbacks to Buying a Newer Home
Similar Floor Plans
Often in newly constructed homes unless you are building a custom home, you are able to choose from a number of floor plans but most often your neighborhood will have at least a couple of house that will look just like yours.
Immature Vegetation
It can take years for trees to grow, so if you are one that loves lots of trees, this may not be a great option for you.
House Settling
New houses settle. It happens everywhere, regardless of the type of soil. Settling can cause cracks in foundations. Nail pops come out in drywall etc., so when purchasing a newly constructed home, usually it is recommended to wait at least one year before painting,
wallpapering, finishing basements etc.
Additional Money for Finishes
Buying a newly constructed home has appeal however, most don’t come with finished paved driveways, fences, landscaping etc. All of these things can be costly. Also, often a builder’s home will come with standard finishes inside. Usually there will be costs associated with upgrading. For example most will come with wall to wall carpeting and
it costs more to upgrade to hardwood.
Neighborhood Not Established
Generally in a newer subdivision your neighborhood is not established so if you are an older couple wanting to downsize, you could end up in a neighborhood full of young families with children. Often when buying a resale the neighborhood has been established for some time. Parks, schools, churches and shopping malls are already in place so there are no surprises. When you decide to buy a home and are trying to decide between newly constructed and resale, look at all of these things carefully to avoid disappointment and surprises. Be aware of all of the advantages and pitfalls of both so that you can make an informed decision and be happy in your next home for years to come.
