According to recently released data from HUD and the U.S. Census Bureau, sales of newly built, single-family homes rose 2.2 percent to a seasonally adjusted annual rate of 546,000 units in May. This is the highest new-home sales rate since February 2008. The National Association of Realtors reported that the sale of previously owned homes also surged in May, rising to a seasonally adjusted rate of 5.35 million, buoyed in part by the return of younger buyers who had long struggled to find a path into the market.
As the housing market returns to normal, we are seeing more and more articles on the pros and cons of buying a new home vs. an existing home.
According to recent survey by Trulia, twice as many people prefer new homes to existing homes. A “new” home is a home that has never been lived in before, or a home purchased in the pre-construction phase. An “existing” or resale home is a home that was pre-owned. Most existing homes were built between the 1920s and the 1970s. For the same price, 2 in 5 Americans – a sizeable 41% of the population – either somewhat or strongly prefer a newly-built home over an existing one.
Among the myriad of decisions to make when buying a home is should you purchase a new home or one that has been previously lived in. Ultimately you have to decide which is best for you and your family. There are advantages and disadvantages to both. Here are a few things to help you make an informed decision.
New homes can cost more. According to Trulia, a new home costs 20% more than a resale home.
When buying a new home, you are able to work with the builder to customize your home before construction is completed. Depending on the Builder, you might be able to design your new home from scratch. At a minimum, you can pick out the carpet, countertops, flooring and paint colors. You might even get to pick out things like sinks, shower heads and door handles.
With a new home, most of the work is done for you. You don’t have to lift a finger, a paint brush, or a hammer. You won’t have to do much maintenance. With brand new appliances, plumbing, heating, and air, you should be repair free for at least a few years – a big financial benefit vs. an existing home.
If you are someone who takes pleasure in fixing up a home, customizing and upgrading it yourself, or tailoring it to your preferences, an existing home might be for you.
New homes come with some of the design elements that today’s lifestyle demands: open floor plans, eat-in kitchens, large master baths, and walk-in closets to name a few.
A new home will likely be more energy efficient built using high-efficiency furnaces, air conditioners, and water heaters, added insulation, energy efficient windows, along with ENERGY STAR appliances that could reduce utility bills by thousands of dollars over the course of home ownership.
A new home might not include certain appliances like the refrigerator, washer and dryer.
An existing home might include appliances which are typically not included in new homes and might also include window coverings and some furniture, etc. which are usually sold for much less since they are used and a burden for the seller to move.
A new home will most likely have the option to include modern technology that many savvy homeowners want like Wi-Fi, USB plug-ins, surround sound, smart gadget capabilities and more saving you lots of time, money, and holes in the walls.
If you want to make a change to energy efficient appliances or more “smart” technology in an existing home, you could end up spending a lot of money. An existing 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. Upgrading to modern technology in an existing home can be expensive and can mean more holes in walls and more remodeling.
Besides the fact the home has never been lived in, a new home is clean and worry-free.
A previously owned home can be hiding huge money traps. The home may look fine, but it could be hiding major issues beneath the surface, such as mold or water damage. The home’s systems and appliances have been used. The water heater has produced thousands of gallons of hot water, appliances have been used hundreds or thousands of times, and the HVAC system has already weathered a number of winters and summers. Systems and appliances that have already been used have a shorter lifespan, and may fail earlier than brand new appliances. Previous wear and tear can be hard your wallet.
There are also lifestyle factors to consider. After all, you’re not just buying a house – you’re buying a home and a neighborhood.
A new home is generally in a neighborhood of new construction, as opposed to existing homes. 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 you could be stuck in a construction zone for a few months or years after purchasing your new home. Some necessities might not yet have been built close to new subdivisions, which could mean you might have to drive farther to schools, grocery stores and work. If you’re looking for a lovely, quaint, tree-lined older neighborhood that has a well-established community of neighbors, you won’t get it for many years in a new development.
A previously owned home will be in an established neighborhood close to necessities and with a neighborhood culture. A home in a neighborhood that has been established can be a huge boost to property values and buyer morale.
New homes are typically built on smaller lots than most older homes. If you’re looking for that big backyard – and lots of space between your house and the next door neighbor’s, you may not find it in a new home.
Take your time and weigh the pros and cons of buying a new versus pre-owned home. At the end of the day, new or pre-owned, your home should make you feel comfortable for years to follow.
Chuck Miller Construction Inc. believes that homes should be a safe and sacred haven. They should reflect our clients’ values and lifestyle while providing a sense of community. They should be comfortable and long lasting, be designed and built so that you can live there independently regardless of your age or physical ability, and should use energy and resources efficiently and responsibly. So whether you decide to purchase a new home or a previously owned home, we have the knowledge, experience, and team of qualified trade contractors and suppliers to turn your dreams into reality.