New Construction Homes vs Resales

With a booming housing market going on across America and Canada, there have never been so many people who want to buy a house.

In fact, popular places like Florida are experiencing such a surge in home buyers, that properties are selling within days of being listed. Not to mention that prices seem to go higher every day. However, there is an alternative to getting in a bidding war with other people who want the same property that you do. Buying new construction homes can help make the homebuying process less stressful and might even save you some money as well.

Let’s take a deeper look into buying new homes, vs buying existing properties, aka resales.

Benefits of Buying New Construction Homes

Some of the obvious benefits of buying a brand-new house is that you can typically pick the options and upgrades for your house before it is built. Things like wall colors, carpeting styles, kitchen cabinets, kitchen and bathroom countertops are things that you can ensure fit your personal styles. You may be able to choose the lot and location of your house, if it is within a community. If you decide to buy brand new construction, you get to speak with the design team who will walk you through the specific things that are within your control and the associated costs. 

Moreover, new homes for sale today are built with modern materials and construction techniques. For example, most new home communities in Florida offer impact glass windows and doors as an upgrade these days, that was not available in the past. Plus, roofing materials have come along way and can reduce your heating and cooling costs, because of new manufacturing advancements. 

New home builder usually offers some incentive to buyers as well. It may be in the form of closing costs assistance, or price reductions for upgrades, or more. Many builders work with specific mortgage companies who offer incentives as well. These depend on the builder, and local housing market of course. Here you can check the best house and land packages in Melbourne eastern suburbs. 

Benefits of Buying Existing Houses

There are many reasons that people buy existing properties that were built years ago. For those who want to redesign the house and rehab the property to their specific lifestyle requirements. Existing properties can be attractive to house flippers too. They typically want ugly properties they can buy under market value, and then fix them up to resell for a profit. People who cannot afford the home of their dreams yet, can buy a house that needs work, and slowly rehab the property as the budget allows.

Anyone looking for a return on their investment (ROI) would rather buy an existing property than a new construction house. 

Cons for New Construction

There are some things to take into consideration when buying new homes are that the property will not appreciate right away. Since new homes are just being built, there is a good chance buyer are paying full market value or more. Since builder set the prices on new homes, there is not much you can do but wait until all the new homes are sold and the local housing market goes up, until you will see an ROI.

New home builders may have homeowner associations that require certain styles, colors, and other nuances that resident must adhere to. This can limit your personal style expression at least on the exterior of the house.

Cons for Resales

Some limiting factors for pre-existing homes for sale are that they are mostly sold as is. The current condition is what you get unless you specifically negotiate the details with the seller upfront. If major repairs are needed, then you may have to factor those costs into buying decision.

No builder incentives will factor into your deal with the seller. Your Real Estate agent can negotiate the best deal possible, which could include seller contributions, but that is not guaranteed. 

Conclusion

There are some different things to consider about buying a new home vs an existing property, that can greatly affect your lifestyle moving ahead. It is important to weigh the pros and cons for each scenario, to determine the best way for you to buy your next home. Make sure to remember that this will be where you spend a lot of your time and make memories with loved ones. Making certain that the house you buy fits into the lifestyle you want to have, and the budget you can afford is the key to success.