Why Should You Build or Buy a New Home instead of an Existing Home?
Recently someone asked me “why should I build new home for more when I can buy a used home for less”
All things equal (location, design, and quality) used homes have always been priced less than new homes. If they weren’t, used homes would be difficult to sell.
Well, if a used house is really, really that good a deal, and real estate investors haven’t snatched it up, there must be something very wrong with it and/or the sale price…OR, it is in a very depressed real estate area
New homes are not built in depressed real estate areas.
Builders know that a key factor in selling new homes is to build them in well-planned, desirable neighborhoods.
1,556 Sq. Ft. @ $139,990 including land from Lennar
Builders, especially large builders and builder/developers are very good at “adapting” to changing real estate markets.
They can compete in any real estate market and adjust their new home pricing.
They can do this because their suppliers and subcontractors and even land sellers adjust their prices to market conditions.
All things equal, location, location, location, here are some excellent reasons why a home buyer would desire a brand new home.
• Design. When you buy an existing used home, you’re stuck with the design preferences of the previous owner. To make the house your home, you may have to spend money to remodel.
• Quality. The quality of building materials such as windows, siding, shingles, flooring, etc is always evolving and improving.
• Energy. Energy efficiency is better in a new home. Newer homes have more efficient and better furnaces, windows and insulation, all resulting in lower utility bills
• Warranty. Though the price of a new home may be more expensive than an existing one, your new home is likely to need fewer repairs or replacements since everything is new…and a new home comes with a New Home Warranty. The piece of mind of a new home warranty from a builder is “priceless”. For used homes, there is always MasterCard.
• Brand New. As a new home buyer, you get that “Brand New” feeling, not unlike that with a “Brand New” car.
• Incentives. A new home builder wants your business and offers excellent incentives and financing options to increase your home purchasing power.
• Financing. Obtaining a new home mortgage or any mortgage loan is often stressful. When you buy a used home, you’re dealing with the seller, the seller’s Realtor, your Realtor and potentially many mortgage lenders. New home builders, however, make obtaining new home loans and new home construction loans and the whole home financing process easy and hassle-free thanks to their mortgage lending connections.
Buying a new house isn’t always about money. There are many factors beyond economics that drive the decision to buy a new house.
A New Home Buyer Helps Build America…One New House at a Time!
Carl
