Buy New or Resale?
The Benefits of Purchasing New
Buying a brand new home is an exciting adventure. If you find a home that has not been started yet (or is in the early stages of construction), it can be fun to select your own colors, floor plan modifications, etc. I’ve had many buyers who were interested in resale fall in love with the prospect of a new home for this reason. Most times they are able to enjoy a turn-key product. Any changes like custom painting can be done once the family is settled. A new home might be a good route for individuals and families that don’t have a lot of time on their hands for remodeling and improvement projects.
I’ve also had several investors seek out new construction for their investment properties. The primary reason for this is the fact that there isn’t any deferred maintenance on the property. When they find their first tenants, all of the major components (roof, water heater, furnace, appliances, etc.) are brand new. This means less expense out-of-pocket…which increases an investor’s profit margin.
Another plus with new builds is the incentives. When builders see their sales slow and their inventory increase, they become motivated to get things moved. This is when the best incentives happen…so keep a lookout! Right now, several builders are offering free plasma TVs, no closing costs, lease buy-outs, and more. I’ve also seen buyers get free furniture and premium lots at no additional expense. If you consider yourself a picky shopper, then buying a resale home can be a bit intimidating. You’ve got to find a house that has the right floor plan, acceptable features, the right condition…and all in an appropriate neighborhood. Buying a new home can make this a bit easier. If you’re in it from the beginning, you can select your lot, the landscaping, the features and upgrades, and so on.
The Benefits of Purchasing Resale
Sometimes buying a resale home is a better option for buyers. First of all, if buyers are looking for a mature neighborhood, it can be nearly impossible to find this in new construction. In fact, there are several areas of Colorado Springs that just don’t have the available land for new construction anymore. If you’re looking for a home that is close to the center of town or your place of work, a resale home will be more likely to put you in your desired area.
I often hear buyers comment that resale homes have “more personality” because they have history. The customization and changes that have been implemented by previous owners might be a good fit for buyers. This means buyers can get into a home that feels more comfortable to them without the expense and time of implementing the changes themselves.
One other benefit to purchasing an existing home is the reduced wait. With new homes, buyers might experience some inconvenience if there are unexpected delays in construction. Those who buy resale are able to negotiate possession terms with the current sellers so they can make their move at a convenient time.
Whatever you decide to do, pros and cons exist for every situation. If you start your search with an open mind and some basic understanding of your needs, you should be able to find that perfect home-sweet-home with a minimum number of headaches.
