Buying a New Construction Home vs a Pre-Owned, Existing Home
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Established in long-standing communities, existing homes allow you to find a community more easily. Buying an existing home may introduce you to new neighbors, friends, and hobbies. When you buy a new home, you get a warranty on its parts and fixtures. So if anything breaks down within a few years of buying your house, it will be fixed by builders without any cost to you.
This article will compare the process of buying new construction vs. an existing home. Continue reading to learn about the cost of building a house vs. buying or renovating an existing home, and whether it is better to buy a home or build one with Keystone Custom Homes. Top priorities for many homebuyers are the school district, local amenities and a sense of community. When you buy an existing home, you’re buying in a neighborhood with schools, parks, shopping centers and commuter routes already in place. In new communities, many of those amenities have yet to be built.
Modern Design
And since the builder will likely still have crews working on the development, any required fixes should happen quickly. Choose to have a wall removed or a new doorway added to better suit your living requirements. While this might increase your construction costs slightly when deviating from the standard design, it will save the cost and inconvenience of making these changes later. K. Hovnanian® Homes is a national new home builder that has been committed to excellence since 1959. You can find our new construction homes across the country, each with a range of thoughtful and stunning home designs.
If you’re more attracted to new construction homes, it’s because you’re attracted to the architectural differences. You can evaluate the pros and cons of buying a new or a resale home. More designs that appeal to modern lifestyles like open floorplans and light interiors.
Learn More About New Construction vs. Older Homes from the Keystone Custom Homes Team!
When a new community is under construction, the area may not have much mature landscaping. Some builders include plants or grass with a new home, but others may leave the landscaping to you. Depending on the size of your lot, this could tip the cost of building a home vs. buying higher.
If you’re a first-time homebuyer, you may be wondering whether it’s better to buy an existing home or a new construction one. Existing homes have more character than many buyers are looking for in their dream homes, but they may also require more work and potential time delays. When searching for a new construction home vs. an existing home, the timeframe is important. You can surely find several existing homes right away, but it will take time to narrow down the right one. For an existing home, you might have to go through a variety of options to ensure the home matches your needs.
The potential downsides of new construction
It’s also important to consider whether any renovations or changes you want to make to your home need to be approved by a Home Owner’s Association. These projects can truly start to add up and should be an expense you budget for after you make the biggest purchase of your life. Because existing homes are older, they also have matured greenery. This growth of trees, bushes, and other plants actually work to protect your home from weather and natural wear and tear. Countless families have made these houses their home and added their own personal flare to make it what it is today.
Unexpected repairs to older appliances, roofing and heating systems can have you spending money where you didn’t expect to. Get preapproved for a mortgage to see what you can afford and the kind of loans you might qualify for. As you move forward, the decision to build or buy a home can be tricky.
Across the country, the supply of new homes for sale has been limited in the past few years. New-home starts and sales plummeted, while existing-home sales got a boost from a spike in foreclosure sales. The ratio of existing-to-new home sales rose from 6-to-1 before the bust to 14-to-1 in 2011.
When looking at existing homes as a homebuyer, you will have the opportunity to see many different styles and characteristics that you may have never considered in a home before. Typically, new construction is built in what is called exurbia, or a location removed from the nearest suburban or city areas. While you may get to build the home of your dreams, you may also be sacrificing easy access to things such as shopping, dining, and other activities. It's also important to consider the potential of adding on time to your commute.
Given the high cost of land in urban and close-in suburban areas in many markets, many new homes are built in more distant locations. This could mean a longer commute or less access to amenities you enjoy. New homes often have locks, thermostats and other features that can be controlled with your smartphone. Many builders choose healthier materials, such as low-VOC paint and upgraded ventilation systems, for better indoor air quality.
They’ll soon have more homes to choose from as single-family construction picks up from today’s low levels. Preferring a new home is one thing; being willing to pay for it is another. The typical new home is bigger than the typical existing home, which explains much of the difference in median prices. To get a better measure of the true new-home premium, we used all for-sale listings, excluding foreclosures, on Trulia from January to March 2014, and adjusted for property attributes and location.
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