Buying a Resale Home vs. Buying a New Home

Preconstruction HomeRecently, a client asked which was a better buy, a new home or a resale home? There are some advantages to both. Which you decide depends on your personal desires and what the market is offering. Instead of giving clients a definitive answer, I find it best to provide some insight and some points for consideration for clients to make a knowledgeable decision.

For some buyers there’s no question. They won’t buy anything but new construction. They are happier in a home that has never been occupied. The advantages of buying a new home make it an easy choice for buyers. It’s fresh, clean and ready to move in. There’s no need to worry about inheriting original fixtures from a home from circa 1960. You can budget repairs further out into the future than you will with an older home. Many of our investments are pre-construction.  We have worked with many of the developers in the area and all of the developers guarantee their products, top to bottom, for 1-2 years.

It takes time to build a new home. Some of our investments have taken as long as two years to be built. However, most have been built within 12-18 months. You can’t move in immediately, but it does buy you some time. Time to sell your current home and time for your new home to appreciate in value.

BUT, homes have depreciated! Yes, they have and one developer we buy from is offering an incentive that will safeguard buyers from a drop in prices while your home is being built. If you purchase one of their homes and the builder drops the price of the same house in order to generate more sales, the developer will honor the lower price at closing and lower your purchase price.

Incentives such as these are not always clear and just another good reason why you should always be represented by a Realtor® when visiting a new homes center.

Just as well, there are those who buy resale homes only. Today’s new communities do not provide large lots and some homeowners simply enjoy the architecture and design of an older home. Some buyers are not interested in living in a community that requires you to abide by an associations rules and regulations and pay fees to maintain the your property and common areas within your community.

Another consideration is the cost. Initially, a new home may be more costly. Factor in the cost of repairs, remodeling and decorating and you may find that the cost is more for a resale home versus the cost of a new home.

Whatever you choose, it is always best to be represented by a fully knowledgeable Realtor® who can guide and advise you through the buying process. A Realtor® with sharp negotiating skills can increase your chances of buying a home at the best possible price.

If you have any questions about buying, new or resale homes, please contact me at the number below.

Joe Quirk
(561) 427-9326

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Filed under Buying, Real Estate

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