New vs. Used Home – Which is Better?
Purchasing a home is one of the biggest decisions of your life. While location and size are both important factors to consider, it’s also important to think about what type of home is better for your lifestyle. Here are some factors to consider:
Advantages of Purchasing a New Home
- New Construction:
New homes are built to today’s stringent construction standards, which have changed dramatically over the past 15 years. They are clean, move-in ready, making them the ideal choice if you want to begin enjoying your move right away or leave your current home quickly.
- Warranty and Maintenance costs:
In every case, a new home comes with a one year fit & finish warranty and a 10-year structural warranty. This protects homebuyers from faulty workmanship, but it also translates into less cost and maintenance. For example, a new heating and air systems on a used home averages $20,000 depending on square footage. This would be an out of pocket expense for a used home owner.
- Modern design and technology:
Built with the needs of how people live today, new homes have minimal wasted space, like huge entry ways (where no one spends time) and state-of-the-art technology. New homes are wired for today’s internet users and smart appliances, security systems and video doorbells. In real estate, dead spots for internet can hurt a resale home value or the owner will need to invest in updated wiring to make it compatible with technology.
- Lower utility bills:
In addition, new homes have higher efficiency appliances and include more green features. In addition to simplifying temperature and lighting control, green technology reduces utility costs, makes homes more energy-efficient, and provides valuable tax incentives.
Purchasing a Used Home
- Lower Price:
Occasionally, a used home can be less in price than purchasing a new home. However, there might be existing problems that aren’t easily spotted at the time of purchase. It’s important to consider this factor when deciding on your purchase.
- Higher Utility Costs and Maintenance:
Depending on the age of the home, it’s unlikely that used homes will have the same features or amenities as a newer home. Most used homes do not have smart technology or energy-efficient features. These homes can end up costing homeowners a lot of extra money on utility bills and security. Although the used home may come with a privately purchased one year warranty, the fine print proves that collecting on those warranties is very difficult, there are many exclusions and there is a high deductible to be met. So, repair costs are many times out of pocket for you as the new owner.
Many homebuyers run into problems when trying to finance an existing home due to low appraisals or unpermitted improvements. Unfortunately, many home owners cut corners or don’t realize that they must obtain the proper permits and follow certain rules to complete tasks and upgrades. This can cause a major headache for future buyers.
Real Estate Sales and Marketing Services
Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.