Questions and Factors to Consider:
Early in the process of purchasing a new home the question arises – whether to build a new home or purchase a resale home already on the market. Here are some considerations that may help you make an informed decision.
Location, location, location. Are new homes being built in the area? Do you know the surrounding zoning and what will be constructed in the area? How far away are services (schools, stores, hospital, doctors, etc.) that you need? How long is your commute to work?
Investment. Typically, due to the continual addition of features, rising labor and material costs, new homes cost more than similar resale homes. Will you be reuqired to pay significant impact or lot levies or taxes and fees that are imposed on the builder? Are the taxes on the new home much higher than a comparable resale home? Will you be in the new home until the area is built out so you will not be competing with the builders should you need to sell the home? Is the home going to be high priced compared to other homes built (or scheduled to be built) in your area?
Features. Are the style and features that you desire only available in a new home? Can you find a resale home with most of the features and amenities you want? Can you add your preferred features to a resale home? Are newer resale homes available that meet your needs?
Risk. Is the new home builder or developer financially stable? Is the builder a large, well-known company with a good reputation? Is the builder asking for significant down payments or advance payments? Are there complaints lodged against the builder for shoddy work or not making repairs? Has the builder been delivering homes when promised? Check with your Better Business Bureau and talk to homeowners who have purchased a home from the builder.
In summary, a resale home can cost less, be more conveniently located, you know the area and amenities and have less risk involved. A new home can be constructed to have the exact style and features you desire, but usually with much higher costs, limited locations, and more risk.
Once you’ve evaluated the pros and cons of each alternative, you can make an educated decision as to which option is best suited for you. Ultimately, your decision should be based on your needs and wants, your family and/or children, your tolerance for risk and the unknown, and of course, your budget.
If you know of anyone thinking of buying or selling, please be sure to tell them about the Foley Homes Team.
New Homes vs. Resale (Part 3)
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