Buying vs. Building New
The
debate real estate sales people and homebuilders have been debating for
years. In essence, builders can never re-create the country’s fashionable
old neighborhoods, where most every house was built architecturally
different from the neighbor’s. And where buyers will never be able to fully
assemble their dream homes the way they can on a vacant lot with a view of
their choice (pond, woods, etc).
To sum it up perfectly – it’s more of a lifestyle decision.
So which best fits your needs and personality?
Here are some of the pros and cons of the Buying vs. Building debate.
Locale: In town near your job (older home) or on the outskirts (new
subdivisions and newer schools). Don’t forget the expense of the daily
commute to work, schools, shopping, etc.
Price: Existing homes are usually less expensive per square foot, in
part by escalating land costs in new subdivisions. But, new homes in a new
subdivision may appreciate faster than one in an older neighborhood.
Living Space: You can design a new home most anyway you want. You may
have to look at many older homes before you find one with the living space
you are comfortable with.
Customization: In a new house, you can choose your own color schemes,
flooring, cabinets, lighting, etc. Don’t forget that walk in closet or the
Jacuzzi tub. In a used home, either you like the paint, wallpaper, or
carpet, or you spend extra time and money changing it.
Landscaping: The rewards of an
older home may yield mature trees, bushes, and manicured lawns. New homes
may yield few trees, fewer walkways, and sparse vegetation.
Amenities: Many new subdivisions offer neighborhood clubhouses,
swimming pools, and playgrounds for residents. Older homes may be close to
the old school house playground, shopping venues and restaurants because
they’re part of old, city planning philosophies.
Maintenance: The appeal of an older home often goes hand in hand with
increased maintenance. Building materials may be harder to replace or match
in an addition or remodeling. New homes generally come with at least a
one-year warranty for the repair of some problems that develop as it settles
into its foundation.
Taxes: Newer homes tend to spring up in less-developed, outlying
municipalities, which may impose higher taxes because they are subsidizing
fewer inhabitants than the central metropolitan area. A more established
home in a built-out area has a little more predictable tax structure.
Energy efficiency: Hands down Winner – New Construction. New home
designers can use new building materials such as glazed Energy Star windows,
thicker insulation and other technology that will lower future energy costs
for the owner. Older homes usually cost more per square foot to
air-condition and heat.
Down payment needed: Not so long ago the bank required a 20% down payment to
build a home. Not today. You can build a home today with no money down.
Depending on the builder, you can move into a new built home with no money
out of pocket. Sounds unbelievable doesn't it.
If you think you might want to build a home - it is still recommended that you have a real estate professional represent you.