The real estate market is full of a great variety of homes for
potential buyers to choose from. One of the first decisions a potential
buyer must consider is their preference for finding an existing home or
building a new one. Here's some things to consider about buying a new home:
Aggressive incentives are alluring. The common
consumer urge to “never pass up a deal” can blur objective reasoning in
this very important decision-making process. But, while many buyers
would be good candidates for a brand new home, incentives are just gravy
and shouldn’t be a major factor in weighing housing options. There can
be more costs and stresses tied to acquiring a new home versus an
existing one.
For example, a spike in driving can mean a drain on the wallet.
Generally, existing homes are closer to town with better access to jobs,
shopping and schools. New construction subdivisions tend to be on the
outskirts of town, which may make for a longer compute or further drive for shopping.
Making a house a home. The feeling of a brand new
house can be intoxicating. But once that feeling subsides and the new
homeowner begins decorating, the need to start from scratch can be
overwhelming. While interior design can be fun, it can turn expensive
and stressful.
Buyers can often find an existing home to live in while accomplishing
the decorating and/or remodeling changes. And many sellers have already
neutralized and made the necessary repairs in order to sell more
quickly.
Surprises on actual costs. Existing homes usually
cost less per square foot due to escalating land costs in new
subdivisions. New homes are often built in outlying areas where the
municipalities need to charge higher taxes, as there are fewer families
to pay for basic services. Additionally, newer homes are often subject
to assessment fees for amenities the family may or may not use.
Rome wasn’t built in a day. Owners in a new
construction subdivision must be prepared for the daily noise and dust
of construction crews, trucks, neighbors moving in, streets changing and
traffic increasing.
Source: Monica O’Neil / Warranty of America.