8 min. read
Many home buyers have asked me if they should buy a new home on either land they chose or in a new subdivision a builder is creating, or should they purchase a used home in an existing neighborhood. While everybody has different ideas of what they want, I am going to share with you the pro's and con's of both.
Buying an established home in an existing neighborhood
Oftentimes it is more convenient to purchase a used home because you don't have to do as much planning to move into the home. The timeline to move in can be shorter because many home sellers move out within 45 days after closing. This makes it easier to gauge your move.
Established area/location is better
It can be daunting trying to locate the right land near the amenities or conveniences you want. Purchasing a used home can allow you to get closer to the things you want to be near i.e. work, family, daycare etc.
Timing works better
The timing can work a lot better in your favor when buying a used home. With a used home you don't have to manage contractors, builders and other things that can stall your move in date.
Usually less money
It can be less expensive to purchase an existing home because most of the work was done for you. Keep in mind that you will have to take into account the costs of any upgrades or additions you would want to make.
With any pro's comes cons. Here are some of them:
Not as custom
With an existing home, you won't always get exactly everything you are looking for. Some sacrifice may have to be made. Maybe you wanted a laundry room or an open kitchen. Buying a used home slims the chances of you getting these things.
Outdated floor plans
A home is a snapshot in time. Maybe some of the things that were trending at the time of build are not trending anymore. This is more common than you would think. Just take a peek at the home improvement shows on TV where they oftentimes knock down walls and change floor plans.
Not as much choice
Locating the right home can take time if the housing inventory is low. Buying a new home can get you started faster on the path to your dream home.
May not be 100% what you want
Purchasing a used home may not give you everything that you are looking for. You may have to settle for some things or budget and spend the additional money to add what you are looking for.
I just shared with you the pro's and con's of purchasing a used home in an established area. Now let's take a look at the pro's and con's of purchasing a new build home.
Buying a newly built home
With a new build you can fully customize the home to your liking. You can work with an architect and come up with a floor plan that will meet your needs. You can choose the paint, flooring and other things from scratch.
Adhere to new trends/layouts
Your new home can be outfitted with the latest trends and custom items that are up to date. You can implement more convenient items that would make your home an easier one to live in.
Would you like the laundry room bigger than a standard wash area? Do you want an extra few feet depth in the garage? There is more flexibility in adding those things when building a home.
Could be more efficient i.e. efficient toilets, furnace, structure
A newer home will more than likely be more efficient. It will have more efficient toilets, furnace, structural properties etc. Local municipalities often call for new construction to have a more energy efficient quality to them.
Typically more expensive
Customization costs money. In most cases you will spend more money to get all the things you want in your newly built home.
Managing project takes time
Building a new home takes more time. From managing contractors to getting the custom items you ordered, the timeline ism uch longer that if you were to purchase a used home.
Other problems could arise with land/home
If you have purchased the land on your own and hired a private builder, sometimes issues can arise from the land that you were not prepared for. Always do as much homework as you can on the land you are purchasing before deciding to build on it.
Have to locate the professionals
If managing your own new build, you will have to locate the professionals to complete the work. This will pose a problem if you are unable to locate competent workers to match your timeline.
Like anything in life there are pros and cons of making a decision. The decision to purchase a new or used home is best made based on what you prefer and your personal situation.
Jason Gelios is a Husband and Father. After that, a Top Producing REALTOR®, Author of the book Think like a REALTOR®, Creator of The AskJasonGelios Real Estate Show and an Expert Media contributor.