New Construction vs. Established Home
When you shop for real estate, there are many decisions that you will have to make, including whether you want to purchase a newly built structure or an established home. According to the 2014 Home Buyer and Seller Generational Trends Report from the National Association of Realtors, about 16 percent of buyers purchased a new home, while 84 percent purchased previously owned property. There are pros and cons to each type of house, so you have to decide which matches your goals and requirements for your future home.
The Benefits of New Construction
When you buy a newly constructed home, you benefit from being the first owners of the property. Everything is brand new and ready for modern use, so you do not have to make any renovations, repairs, or updates. Most newly constructed homes are also designed for the modern lifestyle, and are typically much more energy efficient. If you purchase the property early enough, you can typically make certain revisions to the design of the home with yours and your family’s needs in mind. Depending on the situation, you may even be eligible for certain warranties, especially on the appliances and equipment.
The Disadvantages of New Construction
New structures do come with their downsides, chief among them being that they are often more expensive than comparable established homes. Many new developments also come with homeowner association fees and restrictions. Another factor to remember is that these developments are typically cookie-cutter, manufactured homes that look very similar to one another, and that may not have the quality, detailed work that older homes have. There are also limited negations on the price, unless the developer is looking to get rid of the property.
The Advantages of Established Homes
When you shop for an established home, you have many more options to choose from, including details such as location, architectural style, size, and price. You also typically can have a greater ability to negotiate the price to one that suits your budget. You also will have a documented display of any issues and repairs that are needed. Many established homes are also in established neighborhoods with more culture and charm.
The Potential for Problems with Established Homes
When you purchase an established home, you will most likely have to perform some type of repair depending upon the age and condition of the home. You also might need to upgrade some of the appliances and systems, including the electrical panel, to match the modern lifestyle. Many older homes also have smaller rooms. Older homes may also not be as energy efficient as newer homes, unless upgrades and renovations have already been made to the property.
How To Choose Between New Construction and Established Homes
To decide between the two different types of homes, you have to make a list of your priorities. No matter what type of home you purchase, be sure to get it inspected, as even new homes and recently renovated ones can have issues requiring repairs.