Given their “druthers”, many people will tell you they would rather be driving a new car than a used car, and living in a brand new house, instead of occupying a resale. The reasoning behind the choice of a new vehicle is clear cut: new cars have greater value, better warranties, and of course, that ‘new car smell’.
When it comes to buying a house, however, some real advantages may be gained by purchasing someone else’s home. A consumer would be wise to at least consider this list of potential benefits associated with the purchase of a ‘used home’, before determining that only new construction will fit the bill.
Generally, one should consider buying a resale instead of a brand new home when these factors are important:
Getting The Most House For Your Money
In any given area, the odds are excellent that you will get a substantially larger home when you opt to purchase a resale, rather than elect to buy new construction. New construction is normally priced by the square foot. Construction costs, like everything else in life, are greater today than “in the good old days” (which could be any time from a year ago to 100 years ago). Therefore, there is a logical reason for Older Equaling Larger, since resales are not normally priced by today’s square footage parameters.
Getting Better Quality
Let’s face it. The term “Builder’s Grade” does not usually equate to “Top of the Line”. If you doubt the truth of this, visit any Home Depot, or other large building supply company, and ask to see the Builder’s Grade for a number of components. For example, check out the carpeting, windows, closet doors, etc. that are designated Builder’s Grade. While adequate, Builder’s Grade is rarely the best. In contrast, home improvements, added over a period of time, usually consist of superior quality materials, since homeowners normally believe in “nothing but the best” for their personal properties.
Getting A Picturesque Setting
Landscaping, like fine wine and good lace, improves with age. New homes are, for the most part, notoriously barren. If towering trees and mature landscaping push your buttons, then compare the lush, natural settings of the resales in the area with the stark, newly-manicured lawns of new developments.
Being Certain That What You See Is What You Get
An established neighborhood is exactly that – established. With new construction, the chance always exists that the builder will not complete the project. He may sell off lots to a competitor, who puts less expensive housing on the site. Or, Heaven Forbid, he may even get into financial trouble and leave half-completed homes for the bank to take back!
Having Greater Negotiating Power
Normally, with new construction, the price the builder is asking is at, or pretty close to, the price you will pay. With resales, the odds are much better that you will have greater flexibility in negotiating the price or terms.
Just For The Record:
No one is trying to infer that new homes are bad, and resales are good. To the contrary, there are so many emotional and financial benefits to owning a brand new home that they need not be enumerated: they are self-evident.
Having said that, new homes, like new cars, are often so beautiful and desirable that they tend to overshadow their more substantial, yet less glamorous alternative – the resale. However, before making an important decision like buying a home, a wise consumer evaluates as many alternatives as possible.
Written by Realty Times Staff