Should You Buy A New Build Or Resale Home

Dated: 04/13/2016

Views: 453

Buy Resale or Build New

Should you buy a new build or resale home?

When you think of buying your next house, do you want a home you helped design that will have the latest in energy efficient and design? Or would you enjoy buying a previously owned home that may need new paint, minor fix-ups or in need of a remodel.

These are questions that should be clear at the beginning of your home buying process.  Your answers will depend on your lifestyle, financing needs, and willingness to make improvements, financial situation and personality wise.

There are several reasons why you would seek a resale sale that needs improvement, such as there are no newly-constructed houses where you prefer to live. Or you may love the charm of older homes and do not mind spending the time and money to bring the living spaces up to date and install the latest in energy efficiency.

New Home Build

If you would rather move right into a home that requires no repairs or updating,

here is a quick overview of some of the important reasons to purchase a new home:

Green building and energy consumption.

If you would like to be “green” in regards to the money you save on energy bills or are concerned about the environment, newly constructed homes are majority of the time the better option. New homes have to meet national code standards for energy efficiency and come with energy certifications from everything such as the wall coverings, roof, doors, windows and appliances. It is rare that a resale home will be certified unless it has been fully remodeled to meet the new guidelines.

Convenient wiring and customization for space.

Buying a new home enables you to participate in the design of your living space with the builder. There is opportunity to customize and choose materials, ceiling heights, lighting and layouts. Many new homes come with high-speed wiring, security systems and communication equipment. An older home may be difficult take down walls or install new wiring or electronics.

Replacement Costs.

Everything is new in a newly build house, such as your water heater, air conditioning unit, kitchen appliances and roof and most of the time will come with a warranty. A resale house will have some new and old items that may need to be replaced soon. There may or may not be warranties but if they do they have limitations according to how they were installed.

When purchasing a resale home, capital improvements should be considered as part of the cost of the home over the years.

  • Heating and Air Conditioner: A typical furnace and air conditioner has a 20 year life expectancy. The cost of replacing a furnace is $4000 and up and an a/c unit can be $5000 and up depending on the system.

  • Flooring, Carpet, Tile, Hardwood: Costs to replace the flooring in your part or all of your home can run anywhere from $2000 to $15000 depending on your choices.

  • Roof: A shingled roof can last about 25 years and can cost $5000 and up.

  • Interior and Exterior Painting: When you purchase a new home, you get to select the color. With a resale home you will most likely want to repaint that can cost $2000 and up. Even if you do it yourself, it will cost money and time.

  • Kitchen Remodel: A new kitchen with new cabinets, countertops,  fixtures and sink can be potentially $15,000 to $40,000.

  • Bathrooms: Remodeling a bathroom with new cabinets, sink, countertop, tub or shower can cost $15,000 and up.

Mortgage Financing.

New builders will often have mortgage subsidiaries and can custom-tailor financing. These mortgage subsidiaries can help pay for down payments, “points,” loan fees and interest rates to fit your financial situation. Sellers of resale homes may be willing to make concessions to closing costs but this all they can do. You are on your own when it comes to buying a resale home.

Whether you are buying a new or resale home, it’s best to research and decide what is best for you and your financial future.

Contact me today to help you buy your NEW or RESALE Home. - 602-529-4729

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