Buying a home can have so many ups and downs that you might feel like you're on a rollercoaster! There are thousands of decisions to make when buying a home, and one of those is determining if you should purchase a home that has been previously lived in, or a brand new home that has just been built. There are upsides and downsides to both options, so ultimately you have to decide which is the best for you and your family. Your home warranty insurance company (Landmark) will walk you through the ups and downs of buying new construction and resell, so you can make an informed decision.
BUYING A NEW HOME
Ups of Buying a New Home
1. A new home is customizable.
A new home has many benefits that draw potential homebuyers. First off, a new home is customizable. An individual who is purchasing a new home can pick out the carpet, countertops, flooring and color of the walls. Homebuyers can get even more particular and pick out things like sinks, shower heads and door handles.
2. A new home is modern.
A new construction home will most likely have the option to include modern technology that many savvy homeowners want in their abodes like wi-fi, USB plug-ins, surround sound, smart gadget capabilities and more. They could be built with green initiatives in mind, such as energy saving wall insulation and windows, along with the installment of ENERGY STAR appliances that could help reduce utility bills by thousands of dollars over the course of home ownership.
3. A new home is clean and worry-free.
Besides the fact the home has never been lived in (nobody else's feet have been on the floor!), the home is clean and should have all-new appliances. With a resell home, buyers may have to worry about appliances failing from too much use, but that generally doesn't happen in a new home. Plus, if it does, most new homes have buyer's warranties or a home warranty plan that cover a home's systems and appliances between two and four years.
Downs of Buying a New Home
1. A new home costs more.
According to Trulia, a new home costs 20% more than a resell home. Those upgraded features that are customized by the buyer or modern inclusions can increase the price of the home by a significant amount.
2. A new home may be in a less established neighborhood.
A home that has just been built is generally in a neighborhood of new construction, as opposed to already built houses. New homes are created in brand new subdivisions that are having houses built all at the same time. Although some individuals may think this is a plus, it also means that buyers could be stuck in a construction zone for a few months or years after purchasing the new home. Most necessities haven't been built close by brand new subdivisions, which means buyers may have to drive longer to schools, grocery stores and work.
3. A new home may not include appliances
It's almost guaranteed that a resell home will include the appliances that the previous owners' used. Although this could be problematic since the appliances may fail earlier from wear and tear, having reseller appliances is better then having none at all. Some builders don't include appliances with a new home. Buyers will purchase a new home, and then have to spend even more money filling the home with necessities like a fridge, oven and washer or dryer.
BUYING A RESELL HOME
Ups of Buying a Resell Home
1. A resell home includes appliances (and possibly furniture!)
Moving into an old home definitely has its perks. Not only will a buyer get a place with charm and character, but most sellers include their appliances. Nobody wants to haul fridges, washers, dryers and ovens over to a new home ... especially when their new home most likely has all of those appliances already. Plus, many sellers will offer to sell the buyers pieces of furniture that they don't want to worry about moving to their new place (pool table, anyone?). This furniture is usually sold for much less since it is used and a burden for the seller to move.
2. A resell home may include home warranty coverage
Although a home may have used (and aging) systems and appliances, a buyer can rest easy knowing the home's systems and appliances are protected with a home warranty. A home warranty plan is a lot like home repair insurance and an appliance warranty in one. If a system or appliance fails from normal wear and tear, the home warranty coverage will repair or replace the system or appliance for a small service call fee. For more information on home warranties, go to www.landmarkhw.com.
3. A resell home will be in an established neighborhood
A buyer may enjoy purchasing a home that is already in an established neighborhood so it will be close by the necessities, and have a neighborhood culture. A home in a neighborhood that has been established can be a huge boost to property values and buyer morale.
Downs of Buying a Resell Home
1. Upgrading to modern technology can cost a lot of money.
If a buyer wants to make a change to energy efficient appliances or more "smart" technology in a resell home, they could be spending a good amount of money. A new home usually has these elements included, but a resell home was most likely built when the technology for wireless internet and smart security systems wasn't even a thought in the builder's mind. This means more holes in walls, more remodeling and more money for the buyer.
2. A resell home can be hiding huge money traps.
Although a home may look fine, it could be hiding major issues beneath the surface. What if the home has mold, but the sellers just covered it up? What if the home's roof leaks in the winter-time? What if there are major problems with the heating or air conditioning? These are all questions that new homeowners face when purchasing a resell home. Unfortunately, some of them come true! Sellers may not have taken care of their home, its systems or appliances, and left the buyer there to foot the bill.
3. The home's systems and appliances have been used.
Along with the worry that a resell home could have money traps, when a buyer purchases a resell home, they also know the systems and appliances in the home have been used. Gallons and gallons of hot water have already been kicked out of the water heater, appliances have been used hundreds or thousands of times and the A/C system has already weathered summer after summer. Previous wear and tear can be hard on a buyer's wallet. Systems and appliances that have already been used have a shorter lifespan, and may fail earlier than brand new appliances.
That's why it is important for homeowners to purchase a home warranty plan, or for buyers to negotiate the price of a resell home to include home warranty coverage. If a system or appliance fails from normal wear and tear the best home warranty company will repair or replace the offending system or appliance for a small service call fee.