Whether you're a first-time buyer or looking for an upgrade, you always have to decide between buying a new home versus an old home.
There are plenty of factors that may be less in your control, from budget to location and availability of real estate. You'll need to weigh your options.
So what exactly should be taken into consideration when making this decision?
The Benefits of Buying a New Build Home
There are undeniable benefits to buying a new construction home. New construction means updated and green appliances, personalized features, and more. Let's take a closer look at what you can enjoy about buying a new home.
Green Living and Modernization
Do you want to live in an energy-efficient home with low impact on the environment -- and your wallet? New construction is designed to meet Energy Star standards set in place by the federal government to reduce our country's carbon footprint. These standards are much higher than the ones set in place years ago.
Plus, you can purchase a new home knowing that everything from the roof to the appliances is brand new and up-to-date. You won't have to pay additional costs replacing outdated technology or take on time-consuming renovation projects.
Safety
If you've ever lived in or rented a home built before the late 1970s, you've seen the pamphlets warning you about possible lead paint. You've probably also changed the battery on your fire and carbon monoxide detectors more times than you can count, wondering just how flammable your carpets and roofing material really are.
A new home is built to today's standards and with today's technology. That means that the materials are safe, the fire and carbon monoxide detectors are hardwired into the home, and modern fire retardants are included in the construction.
Floor Plan Design Features
Buying a new quick move-in or to-be-built home gives you the luxury to choose a floor plan that fits you and your family. By choosing a new home, you are choosing an innovative floor plan that has been well thought out for how families live now. Older resale homes tend to have floor plans that are less open with smaller bedrooms and bathrooms.
And if you're an electronics lover, you're in store for a real treat. New homes tend to include pre-wiring that enables you to run high-speed electronics without staring at a mess of cords.
No Buyer Competition
When you're looking at resale real estate, you're one of many potential buyers. It's not uncommon for several applications to come in for the same property when dealing with older homes.
New construction can alleviate the stress of competition. The buyer calls the shots and most of the time, you won't find yourself in a bidding war with other buyers when you're in the market for new construction.
Resale Value
If you do decide to sell in the future, you're going to have an easier time making your money back. Even if you live in your home for 10 years before deciding to sell, you're still offering something newer and more modernized than most resale homes.
Plus, a home that has only been in one property owner's hands tends to be in better shape than homes that have changed hands several times.
The Benefits of Buying an Older Home
For some future homeowners, existing homes may offer a few benefits of their own. Let's take a look at what those benefits are so that you can weigh the pros and cons of new and old homes accurately.
Negotiable Closing Costs
If bargaining is a strong suit of yours, you may have luck knocking down the seller's asking price on a resale property. This can be beneficial for future homeowners who are working with a tight budget.
It is always recommended that you get a resale property inspected before you cut a deal. Home inspections can reveal things like faulty wiring, damaged foundations, outdated appliances, and more. All of these things can help you negotiate for a lower price tag.
DIY Improvements
Some homeowners have a genuine love for fixing up an older home. If you have the skills to renovate floors, bathrooms, kitchens, and more, you may enjoy having weekend projects for the foreseeable future.
If you're looking for a fixer-upper, however, the key is knowing in advance that your DIY home improvements won't cost a fortune. Getting a good deal on a fixer-upper is all well in good until you realize that you're going to have to bring in contractors for a costly overhaul!
Flipping Potential
Perhaps one of the biggest draws to purchasing a resale property is the flipping potential. If you're a savvy buyer, you may be able to find a low-cost property in an up-and-coming area and fix it up. In some cases, you may be able to double the worth of the property in a matter of years.
The issue is that flipping is never guaranteed. If this is your goal, you have to be in a position to take a loss if things don't work out the way you hoped.
The Big Difference
With new homes, the length of time that it takes for you to move into the property depends on where the home is in the construction process. If you decide to purchase a to-be-built home, it usually takes a few months for the construction process to take place. If you buy a quick move-in home, you can move in a similar time frame to a resale home.
The biggest deciding factor is the cost of ownership. In the majority of instances, new homes are a lot more energy efficient than resale homes.
This is because they have been built with new materials in the latest technology and improved insulation over old homes. Investing in an old home won't be as energy-efficient, which means that you may be spending more on your electricity bill, and your monthly expenditures may be more than if you purchased a new home.
Many homeowners will find that new homes don't require as much homeowners insurance as older properties do. This is because the new home construction is updated to the latest and most efficient industry standards. Keep in mind that location and the property's condition play a huge role in how much homeowner insurance is.
Both resale homes and new homes offer significant advantages to home buyers. However, the advantages that they offer to home buyers vary greatly. Figuring out which piece of property will best fit the needs that your family has and the needs that you have will help you narrow down your options between resale homes vs new homes.
At Brightland Homes , we believe happiness starts at home, and we’re here to help you find the perfect house for you and your family. Fill out the form below today, and we'll get started.
