Buying an Existing Home or New Construction
Buying a home is an expensive investment and one that should never be taken lightly. But in addition to deciding how much to spend on their next home, buyers must also make several other important decisions during the process, the first of which is whether to purchase a newly constructed home or whether an existing one would be best for their situation.
When New Construction can be a Smart Choice
Like the appeal of a new car over a pre-owned model, the thought of being the first owner of a brand new home can be extremely intriguing. Because new construction typically costs more than an existing home, however, it is important for buyers to proceed carefully and make sure that their reasons for choosing new construction are worth the additional cost.
Some excellent reasons for buyers to choose new construction over an existing home can include:
- when the home being purchased is a retirement home or when the buyer intends to live in the home for a long time to recoup more of the initial cost of purchase
- when the buyer or a member of the household requires some type of custom feature or amenity to help with mobility or physical impairment issues
- when the buyers want to purchase a home that is completely move-in ready, with paint, flooring, and finish colors of their choosing
- when buyers want to purchase a home that will likely not require any significant repair or maintenance cost for many years
- when buyers are seeking special features not readily available in existing homes, such as green construction methods, solar power, or the latest technology options, such as security, connectivity, and sound systems
When Choosing an Existing Home is the Better Option
Like buying a pre-owned car, however, the purchase of an existing home can offer a less expensive way to obtain desirable features without paying the extra cost for brand new construction.
In addition to value, buyers may want to consider the purchase of an existing home when:
- architectural details commonly found in older homes are important to their decision, such as higher ceilings, larger rooms, and intricate trim details
- when a specific neighborhood or location is important to take advantage of a specific school or proximity to certain local amenities or services
- when an established lawn with mature trees and lots of outdoor space is a must have on the buyer’s list
- when buyers plan to do their own renovations or upgrades
- when buyers want to get the most square footage for the money they spend
- when buyers are unable to obtain financing for new construction
- when buyers need to move quickly and cannot to wait for a new home to be finished
There are many other considerations that buyers should also think about when making the decision on whether to purchase a new home or an existing one and many of these are specifically influenced by the type and quantity of homes available in the buyer’s immediate area.
In order to make the best decision, buyers should start the process by speaking candidly with their real estate professional. They are the best source for information on both types of homes, as well as other important details, such as approximately building or remodeling costs and the location of new developments being planned.