Why Buy a New Home?

(Or, Why NOT Buy a Resale Home?)

There are many factors homebuyers must consider when deciding between the purchase of a new or resale home. To help you make the right decision, we have listed some key considerations relevant in today's real estate market.

SAFETY AND PEACE OF MIND

Newer homes must adhere to up-to-date standards for structural stability, energy conservation and general safety, especially with regard to electrical systems, fireplaces and heating equipment. Also, new construction does not have the wear of an older home and offers modern design features, contemporary conveniences, and of course, the builder's warranty.

APPRECIATION

Newer homes are often (but not always) found in upcoming and developing areas, where value appreciation may be more pronounced than in localities where older homes are found. Thus, in many cases, there can be investment advantages with a new or relatively new residence.

ENERGY EFFICIENCY

With rising utility costs, lack of energy efficiency in an old home is also a major consideration, and upgrades in this area can be cost prohibitive. Insulation in ceilings, walls and floors is often sub-standard or non-existent, and old-style windows waste heat almost as badly as if they were open. Very old air-conditioning and heating equipment is typically not designed for efficient use of fuel, requiring more money to produce a comfortable living temperature.

CRAFTSMANSHIP

People often assume that workmanship in past generations was superior to what is practiced in today's workplace. Given the value denigration in some parts of popular culture, this may be true in a general sense. But, to apply this as a blanket condemnation of current construction quality would be a grave mistake. Good and bad craftsmanship have had their place in every era, and builders with skill and integrity are by no means an extinct species. Plus, builders continually research materials, technologies and building practices that will produce a new home that will stand the test of time.

AFFORDABILITY

Generally, resale homes are more affordable than their newer counterparts. This is simply a function of supply and demand, and the economic realities of the real estate market. However, it should be noted, that the short-term savings in the purchase of an existing home may be lost over time when repairs, renovations, pest control, and lower appreciation are taken into account. These issues are much less likely to concern new home buyers.

LOOK BEYOND THE SURFACE

With many older homes, there are additional advantages, such as proven stability, established landscaping, ambient character, and antique design features. But here also, there is a list of down-side considerations involving deterioration, wear and obsolete design. Many older homes have been upgraded to offset these disadvantages, but such improvements are not always the work of qualified contractors, nor is such work always done with a permit.

In many respects, the choice between a new or old home hinges upon individual considerations, such as personal likes and dislikes, long-term objectives, available time and capital for home improvements, do-it-yourself skills, age and season of life, etc. When all factors are considered, the choice should be the one that is most consistent with your practical needs, desires and finances. And as always, it should include the disclosure advantages provided by a well-seasoned, qualified home inspector.

Source: American Home Guides

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