Archive for month: June, 2018

When it comes to making a decision between buying a newly constructed home and buying a pre-owned house, the first thought that is likely to strike the mind of the prospective buyer is location and price. Well, while price may be a factor in any business transaction, there are other things to look out for when purchasing real estate.

Let’s take a look at the benefits and disadvantages of buying a new home from a builder vs buying a pre owned home from a private seller:

1. Location of the home

Pre-owned home (Pro)

This is one advantage of owning a pre-owned home. Most pre-owned homes are situated in already established areas with access to schools, banks, and other social infrastructure.

New home (Con)

Most newly constructed homes are built in locations outside the main city area. This is because of the fact that most of the main city area is already occupied, and the only available space for new buildings are on the outskirts. While this might be a good location for some people as they are far away from the hubbub of city life and living in a more serene environment, it, however, implies that you’ll have to commute every day to places like schools, office, and shopping malls which are located in the metropolis.

2. Availability of new features

New home (Pro)

New homes are built based on the latest designs and feature the latest technology. Most new homes come with more amenities and appliances which are seldom found in older homes.  However, you are getting a blank canvas in the backyard and you’ll be expected to landscape the front of your home within a short period of time

Pre-owned home (Con)

An older home lacks some of the latest technological features of modern smart homes. This might be an issue for some people who are tech-savvy.  Depending on what the buyer is looking for, some homes may need remodeling, new appliances and other updates.

3. Ease of acquisition

New home (Pro)

Buying a newly constructed home is easier than buying a pre-owned one. It takes a shorter period of time in searching for and concluding the acquisition of a new home than it is for an old one. However, most builders estimate 9 months to complete a home.  This may work for your advantage if you are trying to sell a current residence and need some extra time to prepare financially.

Pre-owned home (Con)

Buying a pre-owned home involves some extra steps before the deal is final.  These homes need to be inspected for infrastructure, termites and may be in need of some crucial improvements. Some seller might be resistant to complete repairs or reduce the sell price to compensate the buyer for not fulfilling that request.

4. Renovation and repairs

New home (Pro)

As a brand new house, there is almost nothing needed to be fixed in it as everything is still “fresh.” Hence, there is virtually no need to start making repairs or renovations in the house. This also means that you don’t spend more money after finally buying the house. Homes are 100% move in ready and don’t need renovations.

Pre-owned home (Con)

A pre-owned home might need some major repairs, new appliances, floors and paint. This means that you’ll have to put in more time and money in restoring the home before actually moving in.

5. Pricing

Pre-owned home (Pro)

Since old homes have already been previously occupied, the cost of buying them will be lower than getting a brand new home. There are exceptions though, as pre-owned homes in reputable high demand neighborhoods will still carry huge price tags.  However, the price of the home includes established landscape, possibly a pool and window covering.

New home (Con)

With all the amazing features and technology fitted in a new home, the price just has to be more expensive.

Wether you are buying a new or pre-owned home, always have a real estate agent represent your interest.  Let us know how we can help!

Contact Chris and Cheryl

The metro Phoenix area is mixed with newer construction as well as some historic homes. Some of these historic homes are as old as the town itself. You can find them in the Old Town Scottsdale which is the original site of the region. Examples include the Pony Steak House, Noriega’s Home and Livery

Stable, and the Lu Lu Belle Building which were built during the early and mid-twentieth century.There are certain factors that make a home to be considered as historic. Top on the list is the age of the home: a home needs to be at least 50 years old to be considered historic. The structural integrity of the building after those years is another factor. In addition, the background of the home plays an essential part in determining whether it is historic or not. That being said, there are various reasons why people consider picking a historic home instead of a contemporary one, and vice-versa.

The following are some of the advantages and disadvantages of buying a historic home:

Pros of buying a historic home

Lower property tax. Most governments give tax reliefs and incentives to owners of historic homes as a way of encouraging the building’s preservation.

An opportunity to better understand the underlying history.  Every historical home has a rich historical background and owning them gives you a chance to learn more about their history.

Living in a historic building gives you an opportunity to discover the past of the building as well as the past of its former owners.

Elegance and beauty.  Most historic homes are more elegant than contemporary ones. They have a unique design that sets them apart from others.

A chance to contribute to history. Most historic homes are preserved by the city and form an important part of the community.  Being the owner of a historic home affords you the privilege to contribute to the development of that community by helping to preserve the home.

Good future value. If you are able to maintain a historic home, it may appreciate in financial value later in the future. This means that you can sell it for far more than what you bought it for.

Cons of buying a historic home

You may have to spend more in order to renovate it. As a rule of thumb, aged houses cost more to renovate and maintain than newer homes. In addition, the insurance for the home may not be cheap. Thus, in the long run, you might have to spend more on renovations and maintenance than what you spent on buying the home.

You may have to work more to renovate and preserve it. Historic homes are at least half a century old, meaning that most parts of the home need some repairs, especially if the former owners lacked a good maintenance culture. Besides the cost that you’ll incur, you need a lot of time and energy to get things back in shape.

Historic homes come with their restrictions. This may be the biggest disadvantage of owning a historic home. Historic homes are protected by strict state laws in order to keep them preserved and as such may limit the freedom of the owner in making changes to the home.

Possible undesirable surprises. You never know what can arise from a historic home as it has gone through many years of ownership. Some of the discoveries you’ll make in the course of living in a historic home may not be positive, so, watch out for them.