There is a major decision early in the
process of purchasing a new home and that is whether to build a new home or purchase a resale home already on the market. This page
provides some considerations that may help
you make an informed decision.
- Location, location, location. Are new homes being
built in the area you desire? 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 the 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. New home lots are typically smaller and
homes closer together. Are you having to pay significant impact 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 going to be built in the 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 desire? Can you add the features
you desire to a resale home? Are newer resale homes available
that meet your needs? Do you want well developed landscaping
or develop it yourself?
- Risk. Do you have the time to wait until the home
is constructed and oversee the work in progress? Will you be
satisfied living in area that might be under construction for
several years? 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? Does the
builder give a warranty and fix problems quickly? Check with
the Better Business Bureau and talk to homeowners that have
purchased a home from the builder.
In summary, a resale home can cost less, be more
conveniently located, and have less risk involved. A new home
can be constructed to have the exact style and features you
desire, but with higher costs, limited locations, and more risk.
In either case, be sure you have the services of an experienced
independent buyer real estate professional to assist you. |