One question that I get a lot is, “What’s recommended: buying new vs resale home?” A new home is one that has never been lived in while an existing home has been lived in by a previous owner. There are Pros and Cons either way that you should consider. Here are my home buying tips for buying a new vs resale home.
PROs for Purchasing a New Home May Include:
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Lower maintenance costs during the first years of owning the home.
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Lower energy costs because new homes are built with better energy saving materials and equipment than older homes.
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More functional home designs and floorplans as well as up-to-date home fixtures.
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Latest technology features such as pre-wired for a home computer network.
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Possibly the ability to choose paint colors, floor types and colors, exterior colors, and other optional home features.
NOTE: There is typically a substantial markup on these items.
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Builder incentives to lower the initial cost to purchase.
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Easier to get to know neighbors because everyone is “new.”
READ: KATY MODELS & NEW CONSTRUCTION HOMES
PROs for Purchasing an Existing (Resale) Home May Include:
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Lower price per square foot than newly built homes.
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Better locations and shorter commute times.
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Mature landscaping in both the yard and throughout the neighborhood.
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Proven track record of home values in the neighborhood.
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Lower tax rates since more neighborhood features have already been paid for by home owners.
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Sales contracts that are fair to both parties…not one-sided in favor of the builder.
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Lower move-in costs (possibly) since home already has window coverings, landscaping, garage door openers, and other items that you will have to buy for a brand new home.
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Easier for home inspector to find home defects because more time has passed since the home was constructed. NOTE: New homes may have hidden defects that are impossible for a home inspector to find.
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More established school zone boundaries than for new neighborhoods.
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Established community activities and events.
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Quicker move-in date compared with building a home from scratch in a new neighborhood.
If you decide to buy a new home, make sure that you check out the builder first: http://houston.bbb.org/consumers/. Also make sure that you hire an inspector (read http://www.best2inspect.com/buyersguide.html for more information). And don’t forget to bring your Realtor along when you view new home models! Remember: A Realtor’s job is not “just” helping you find a house to buy…there are over 100 tasks that Realtors may perform for you during the home purchase process! Your Realtor should be on your side because she is your agent. The salesperson at the builder’s model home office is not on your side…as an employee of the builder, he or she is looking out for the builder’s best interest.
Before you decide to buy a new home, make sure you get up-to-speed on new home builder’s warranties at http://www.fairarbitrationnow.org/content/home-court-advantage-how-building-industry-uses-forced-arbitration-evade-accountability (scroll to the bottom and then click “Read the Full Report.”
You will also find these articles interesting:
- New Home Builders: Buyers Beware
- Selling Used Home in New Neighborhood
I don’t want to discourage you from buying a new home…Houston has some really great new home builders. But it’s my job to make sure that you have all the information that you need to make a wise buying decision.
NOTE: The Following rankings are from JD Powers 2010. I’m not aware of a more current list.
Buying & Selling Real Estate Is a Huge Investment
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Sheila Cox
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REALTORS DON’T “JUST” SELL HOUSESReal estate agents don’t “just” sell houses; we sell a SERVICE to effectively guide home buyers and sellers through the entire real estate transaction, which usually takes several months. We are more like real estate consultants than we are salespeople. That’s probably why 86 percent of all home buyers and sellers choose to hire a real estate agent when buying or selling a home! Buying or selling a home is not like buying or selling a TV, a computer, or a car. You can’t buy/sell a home on the Internet with a couple of clicks. There are MANY legal aspects, deadlines, and requirements that most people are not trained to handle. What’s more…mistakes along the way can cost you thousands and even hundreds of thousands of dollars. The financial risk is much greater than just about anything else you may buy.
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Integrity—I promise to give you candid opinions on all homes and areas so you can make the best decisions. I won’t ignore potential defects that can cost you money, or effect your resale value, in the future…I point them out to you! My job is to protect you, as much as possible, from defective homes while helping you make a sound financial investment. You will get more REAL info from me regarding homes/neighborhoods than you ever had before! (Read client testimonials)
Local Area Expertise—This isn’t just my business…it’s where I work and live (for 20+ years) so I really know the area. I will help you narrow your options and find the best neighborhood for you based on your specifications. For long-term resale value, the neighborhood you choose is just as important as the home you buy. (Download my Ultimate Katy Guide)
Great Pricing Data—I will give you the most in-depth data you have ever seen…to help you make the wisest decisions. This includes a professional CMA when you are ready to purchase a specific home…so you don’t pay too much. You can’t get this level of pricing information anywhere else. (Also see Pricing a Home Correctly)
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Video Home Tours—If you or your spouse lives out of the state or country, then you will enjoy my detailed video home tours. I have sold multiple homes to out-of-area clients “site unseen” by providing High Definition video walkthroughs of potential homes. My videos show front and back yards, closets, pantries, laundry rooms, and the garage…as well as the entire home. This gives you a complete picture of the house (unlike Matterports). I also point out any potential defects or deferred maintenance that I see. (view sample video walkthrough)
Easier Process—Moving your family (and possibly changing jobs) is stressful enough. I’m your transaction manager and will guide you, step-by-step, through the process so you never miss an important deadline. I assist with inspections, repair negotiations, home warranties, HOA compliance inspections, hazard insurance, surveys, appraisals, title commitment, home warranties, title commitment, and more. (Get Details of My Value-Added Services)
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