Choosing Between An Existing Home or New Construction
One of the biggest challenges today for potential home-buyers is finding the home that suits them the best. With inventory of existing homes for sale at low levels and construction of new homes on the rise. you may be questioning if you should consider newly built or custom built homes in your search. It's a valid question and you should look at the pros and cons of new construction versus existing homes to see what's right for you. Here are a few things to consider:
New construction offers you the ability to customize your new home as you like including energy efficient options. New appliances, new windows and a new roof and more will be advantageous at keeping your energy costs low, which will significantly increase your savings over time. Energy Star is a program that helps protect the environment and lower the carbon footprint.
Because new construction is new, an added advantage is that the home will require minimal maintenance. It will be years before you have to deal with minor repairs like leaky plumbing, faucets, painting and other odd jobs that come with older homes. Another benefit of new construction, most items come with a limited warranty for the first several years after you close.
As mentioned earlier, new construction also allows you to negotiate customizations with the builder. You may opt for an open den or office instead of a closed off bedroom. You can choose upgrade packages such as stone selection in the kitchen and baths like granite or Quartz as well as upgraded appliances, and floor covering choosing tile or hard wood, etc. One result of the pandemic, many home-buyers are looking to add a multi-purpose room for home schooling children. The list goes on and on. With an older home already built, any customizations that you'd like, will require a contractor and renovations.
Older Existing home
When purchasing an older home from a home seller; you can negotiate price, which is something rarely available when purchasing from a home builder. As builders are well informed on building costs, labor and materials, they base the selling price on the new construction home accordingly. So, if negotiating price is an absolute must, you are better suited for an older existing home.
Another benefit of an older existing home is that it is already part of an established neighborhood. Many buyers choose their home based on the neighborhood, friendly neighbors, traffic patterns and proximity to schools and work. With new construction, the neighborhood establishes itself over time.
Timing is also an important factor to consider. With an older home, you can negotiate a move-in date with the home-sellers, typically within 30-45 days and oftentimes sooner. New construction on the other hand, you will obviously have to wait until the home is completed taking into account unforeseen delays due to weather and material shortages, etc. We've also seen delays due to Covid-19. If you have a specific time-line that you must be moved in by, an older home may be best suited for you.
The choice between a new construction and an older already established home have pros and cons that you have to consider up front. They both offer benefits and each home-buyer's needs are different. If you have questions and want to know more about the options in our area, let’s connect today so you can feel confident making a decision about your next home.
The information contained, and the opinions expressed, in this article are not intended to be construed as investment advice. John Sabia, Coldwell Banker and Keeping Current Matters, Inc. does not guarantee or warrant the accuracy or completeness of the information or opinions contained herein. Nothing herein should be construed as investment advice. You should always conduct your own research and due diligence and obtain professional advice before making any investment decision. John Sabia, Coldwell Banker and Keeping Current Matters, Inc. will not be liable for any loss or damage caused by your reliance on the information or opinions contained herein.