When buying a new home, you have two options – buying a resale home, or a previously owned home vs buying a new one. Between the two – there’s always a flip side. You’ll be faced with a number of critical decisions whether you’re a first time homebuyer, someone who is starting to build a growing family, or a retiree looking for the best place to enjoy your golden years. It may seem like a simple decision – new homes vs. resale, a home that’s been lived in previously vs. a brand-new home.
If you’re in the market for a resale move-in ready home, the average single family home on the Texas housing market was built in 1990. This means they have more stories to tell compared to the new homes that almost always cost more.
What exactly do buyers get when they purchase a new home vs. resale?
Let’s briefly look at the pros and cons to both options.
Advantages of a New Home
- The opportunity to personalize your floor plan, as well as the interior and exterior areas of your home.
- Low maintenance costs because materials in your home is brand new,
Disadvantages of a New Home
- It takes several months up to a year before you can actually move into your new home.
- The interior and exterior might appear too similar to your neighbors.
Advantages of a Resale Home
- Live in a property with ‘history’.
- The landscaping has matured and the neighborhood is already established.
Disadvantages of a Resale Home
- Costly repairs might be needed before and after moving in.
- The layout or design of your home might be difficult or costly to alter.
Why Consider a New Home over a Resale
There are other factors to consider aside from the actual cost of home ownership to make sure you get the home of your dreams with as few problems as possible. Before deciding between buying new home vs. resale, let’s take a look at a few important points to help you decide which option is best for you.
1. Resale Value
A house is an investment and while it might seem premature to think of the resale of the property even before buying it, it is a necessary factor to consider when buying a home. You might say, resale value is never promised. That’s true considering the economy and other factors like the current health crisis have a large effect on the housing market prices and home values; but there are also indicators that suggests a property is a good and a smart investment like type of neighborhood, the schools, and the community, just to name a few.
2. Ease of Purchase
Another important factor to help you decide is how easy it will be to qualify for a mortgage when buying the property. While a good credit score and availability of cash for down payment are the best ways to secure a home loan, a resale home might have an existing mortgage. Always conduct due diligence when buying a resale home. Secure the original documents of the property because if not, it may mean the lender still has the documents.
3. Customization
New home buyers often have the opportunity to participate in the designing process of the property. They can even get to select the flooring, wall colors, or even decide the lot they like the best. You may also be allowed to do some upgrade tailored to fit your lifestyle. This kind of flexibility in customizing a new home can be hard or challenging to do on a resale home. Buying a resale home without proper assessment of the repair overheads involved might cost you more than you’ve prepared for.
Let’s face it. New homes are more energy efficient than older houses because they are built according to code regulations. Moreover, it can be costly to bring a resale home up to code if it isn’t ready. New homes often come with the builder’s warranty while resale homes may need some repairs and renovations. Moreover, new home buyers can take advantage of mortgage financing perks unlike in resale homes.
That being said, buying new homes vs resale homes have their own unique characteristics. And if you’re in the market for a new home, you might want to consider buying a new property based on the above key points. It is important for home buyers to better understand the process and advantages of choosing a new home over a resale.
There’s more to think about when buying a new home than simply the cost. Location is important too! If you’re looking to buy a new home in Texas, ApexPro will assist you with your home buying needs from start to finish.