One of the biggest dilemmas potential home buyers face is the decision whether to purchase a new one or an existing home. Although many factors influence this decision, it is strictly a matter of personal choice and circumstances. There are pros and cons to both and this must be taken into consideration in the early stages of the planning process.
In the prevailing real estate environment, the biggest difference between new and existing homes is price. The price difference between new and existing homes is growing, both regionally and nationally. According to SalesTraq, the median price of existing homes was $108,000 and $195,950 for new ones. The gap between new and existing home prices in Las Vegas widened to $88,000 in March 2011, compared to $7,000 in 1996. Although differences vary, the stark difference in prices between new and existing homes is a common scenario nationally.
In addition to factors such as price, distance from work, neighborhood, schooling, amenities and resale value, there are many other pros and cons that must be considered to make it easy to decide between a new or existing home.
New Home
Pros: you usually get a builder’s warranty which covers construction and appliances. It’s your own brand new home. You can customize, paint and decorate it anyway you prefer. It may have more energy-efficient design, building materials, and appliances. You may be able to negotiate with the builder to thrown in various options. New homes are built to updated building and safety codes. The electrical system may be wired to handle today’s technology demands such a home theater. The new subdivision may have modern recreational facilities and amenities. You definitely have less maintenance than an older home.
Cons: New homes can cost a lot more than existing ones because of the increase in costs associated with land, materials, and labor. In a down market, it may be difficult to sell your existing home to help you pay for the new home. Your commute to work may be longer because new homes are usually constructed on the outskirts of the city or suburbs. The schooling system in the new neighborhood may not be as good as ones is established areas. You may pay higher property taxes to expand utilities and other services to a new area with fewer inhabitants. Landscaping can be expensive. The homeowners’ association fees may be higher than an older subdivision.
Existing Home
Pros: An existing home may be a lot cheaper than a new one. You may have many more choices of types of home as well as locales. You may be able to find a house in a desired neighborhood or a good schooling system. Landscaping costs are generally lower. You may get more bang for your buck in terms of quality of workmanship in a home that was built when land, labor and material costs were lower. You may have more living space, more land and more distance between houses. If the yard has mature trees, you’d benefit by having a cooler home and lower air conditioning bills in summer. The home may have a renovated kitchen and other goodies such as a finished basement. Appliances and window treatments are often included.
Cons: Older homes are generally less energy-efficient and may have leaky doors and windows, which means higher cost for heating and cooling. The house may require expensive repairs. Appliances which are no longer under warranty can fail anytime requiring immediate repair or expensive new purchases. The styling, décor, and flooring may be outdated. Building materials can be harder to match or replace.
The best way to decide if a new or existing home is best for you and your family is to make a list of what you are looking for in a home, your budget, preferred location and other factors that are important to you.
In the prevailing real estate environment, the biggest difference between new and existing homes is price. The price difference between new and existing homes is growing, both regionally and nationally. According to SalesTraq, the median price of existing homes was $108,000 and $195,950 for new ones. The gap between new and existing home prices in Las Vegas widened to $88,000 in March 2011, compared to $7,000 in 1996. Although differences vary, the stark difference in prices between new and existing homes is a common scenario nationally.
In addition to factors such as price, distance from work, neighborhood, schooling, amenities and resale value, there are many other pros and cons that must be considered to make it easy to decide between a new or existing home.
New Home
Pros: you usually get a builder’s warranty which covers construction and appliances. It’s your own brand new home. You can customize, paint and decorate it anyway you prefer. It may have more energy-efficient design, building materials, and appliances. You may be able to negotiate with the builder to thrown in various options. New homes are built to updated building and safety codes. The electrical system may be wired to handle today’s technology demands such a home theater. The new subdivision may have modern recreational facilities and amenities. You definitely have less maintenance than an older home.
Cons: New homes can cost a lot more than existing ones because of the increase in costs associated with land, materials, and labor. In a down market, it may be difficult to sell your existing home to help you pay for the new home. Your commute to work may be longer because new homes are usually constructed on the outskirts of the city or suburbs. The schooling system in the new neighborhood may not be as good as ones is established areas. You may pay higher property taxes to expand utilities and other services to a new area with fewer inhabitants. Landscaping can be expensive. The homeowners’ association fees may be higher than an older subdivision.
Existing Home
Pros: An existing home may be a lot cheaper than a new one. You may have many more choices of types of home as well as locales. You may be able to find a house in a desired neighborhood or a good schooling system. Landscaping costs are generally lower. You may get more bang for your buck in terms of quality of workmanship in a home that was built when land, labor and material costs were lower. You may have more living space, more land and more distance between houses. If the yard has mature trees, you’d benefit by having a cooler home and lower air conditioning bills in summer. The home may have a renovated kitchen and other goodies such as a finished basement. Appliances and window treatments are often included.
Cons: Older homes are generally less energy-efficient and may have leaky doors and windows, which means higher cost for heating and cooling. The house may require expensive repairs. Appliances which are no longer under warranty can fail anytime requiring immediate repair or expensive new purchases. The styling, décor, and flooring may be outdated. Building materials can be harder to match or replace.
The best way to decide if a new or existing home is best for you and your family is to make a list of what you are looking for in a home, your budget, preferred location and other factors that are important to you.
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