April 28, 2021
If you’re not sure whether to purchase a new home or an older one because of budget, then maybe you should know just how much home you can afford. It is all too easy to fall for the lure of the new. A fresh coat of paint, new floors, and a spacious room. It seems that there is nothing more desirable than an all-new home. But what is the difference between a new home and a home that is several years old? Sure, some houses are made to be resold, but many others are perfectly fine to keep. With an array of new features that come standard in new homes, it’s easy to see why the shiny new home is so tempting. So when faced with the decision to buy a brand new home or an older home, ask yourself these two questions: What am I getting with a new home? Is the newest model worth the cost? In order to answer these questions for yourself, you need to be as informed as possible. To aid you in your purchasing decision, be sure to take these pros and cons of buying new vs resale into consideration.
Most new homes come with 1-year builder warranties. These are often only valid for the builder’s work and may not cover any damage that occurs in your home, but they do give you a small safety net if something goes wrong. Then you may get a 5-10 year extended warranty that offers protection for major appliances, HVAC systems, and other key components. Each builder will have their own warranty and the length of time will vary. This is just one of the many reasons why new homes are a good investment.
In terms of new homes, the latest and greatest in technology is standard. So you are getting the best of the best, from high-efficiency heating and cooling systems to the latest kitchen and bathroom fixtures. From intelligent security systems to cutting-edge entertainment options, new homes have them all.
The foundation of your home and the overall structural integrity are guaranteed for a certain amount of time. In terms of brand new homes, these guarantees range from five to ten years, but generally, the buildings and walls are guaranteed to remain secure for the next decade or so. So, if you are looking for quality that lasts, you will want to invest in a new home.
By purchasing a new home, you are also going to be paying top dollar for it. New homes may come with the latest and greatest in technology, but you will be paying more for them—a lot more, in fact. New homes will cost you as much as 50% more than older homes, and they don’t always have the square footage to justify the price. So, before you sign on the dotted line, be sure to calculate the price per square foot of your new home and compare it to your choices of used homes. If your bank account can handle it, a new home is certainly an attractive investment, but make sure that it’s worth it.
The price tag of a used home is significantly lower than a new home. If you’re not in the financial position to purchase the most expensive house on the market, then used homes are your best bet. Used homes will generally save you between 25 and 50% on the cost of any new comparable home in the market. So, if you are going to be purchasing your first budget home or just looking for some extra cash, then a used home will be a much more affordable option.
With a used home, you get all the same luxurious amenities that you get with a new home. Depending on how old your home is, there’s a good chance that it will have all the latest and greatest features. From tankless water heaters to smart home automation, used homes can be just as luxurious as new homes.
Most used homes are obviously older, and therefore, are more likely to need some work to make them safe and sound. Before buying a used home, it is important to get it inspected by a professional. When it comes to using your hard-earned money to purchase a home, it is always best to know exactly what you are getting into.
When purchasing a used home, you will have to make several upgrades. The first few things you should do is a general checkup of your home. If it needs anything, such as some repairs, or even if it just needs to be painted and refurbished, you will have to cover these costs. So, keep that in mind when you are buying a used home.
So which home is better? If you’re looking for the best value, a new home is going to be your best bet. But if you’re looking for quality and are willing to invest a little more money, a used home is the best choice. And it all comes down to what you are looking for in your first home. Will you be looking for the latest and greatest in technology? Or will you be looking for the convenience of having a home that has been in your family for generations? Either way, consult with a professional and sum up all of your options before you make the biggest decision of your life.