Picking between a new and existing home
June 27, 2011
When it comes time to purchase a home, home buyers may be split on which they prefer - a newly built one or an existing property. There are advantages and disadvantages to both, and recognizing those differences could help home buyers make their decision, according to Bankrate.com.
Newly built properties
According to U.S. News and World Report, there are a number of reasons for home buyers to purchase a newly built home
. For starters, these properties can be customized to home buyers' own personal tastes, allowing them a chance to leave their imprint on each corner of the property. Additionally, the properties often include more energy-efficient appliances and technologies than existing homes, providing
homeowners savings on utility bills. Since they're newer, they probably will require less repair and maintenance, reports U.S. News and World Report, because home builders today normally try to design homes that require as little maintenance as possible. Home buyers can also take advantage of warranties home builders offer on newly constructed homes, reports Bankrate.com.
The biggest slight against new homes is the price tag, according to Bankrate.com. Since they're built from the ground up, they are traditionally more expensive than existing homes. That's part of the reason why new homes require a longer commitment to living in the home than existing properties, something that could complicate matters for a home buyer who thinks he or she may want to buy a home
again in a few years. Newly constructed homes are also not always in the most ideal
locations, Bankrate.com reports, because they're often among other properties that are also being developed, meaning one may have to get used to the sound of band saws and jack hammers.
A lower price is not the only possible advantage to an existing home, reports Bankrate.com. Looking for a home to buy in an established community provides home buyers the chance to gauge how the property might gain value in the years they will own it. If the home is in a location that appears to be on its way up, the property could represent a good investment, reports Bankrate.com. Additionally, home buyers may be more likely to settle down in a better location if they buy an existing home. However, the properties could require more maintenance and may need repair, Bankrate.com reports.