New Construction vs A Pre-Owned Home
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!
