When shopping for a new place to call home, a major consideration that you must make is whether to buy a new or a used property. There are many benefits with both property types; however, it is important to analyze the different types of properties and determine which type meets your families goals. Their are several elements that you should consider when buying a property.
Is the Property Valued Correctly?
When looking for a house to buy, the major consideration for you is cost and value. Are you getting a good deal? Is the property within your budget? With a resale home these questions are easy because the area is established, the schools have been built, and all the amenities have been placed. When purchasing a new property, you are unsure of the price of the property because the neighborhood has not been developed. The neighborhood may turn out to be a dangerous neighborhood causing property value to plummet. The schools may not be suitable for your children to go to. It may be inconvenient for you to drive to work. There are countless variables that will remain unknown to you before you move in.
Another primary concern is moving in time. In a new property, it could be up to several years before the property is completed before you can move into the location. In a resale property, usually the move in date will be approximately 30 to 90 days after you place your offer. A lot of things could change in the area that could affect the marketability of your property, so make sure that you are aware of these potential changes.
Also, make sure that when you select a home builder, especially during tough economic times, that you choose a builder with a good balance sheet because if the company goes bust, then you may loose your deposit.
Perils of Resale
There are many benefits with a resale property; however, the major downfalls of a resale property are more associated with the construction value of the property. In a new property, you are getting all new materials with a very long life. On a resale property, the house may have aged and renovations may cost a lot to do and are constantly needed. Also, it is very expensive to change the dynamics of a resale property whereas a new property, there is more opportunity to customize the unit.
Many home builders also allow you to add certain add on features to the property in a new purchase; however, you will not be able to access that in a resale because it is usually sold ‘as is’.
Another important factor is lived in. In a new house, it won’t have a history since you will be the first family living in the property; however, in a resale home, it will have a history, and it could ve potentially extremely negative.
When choosing a new or used home, there are a lot of factors to consider above price. The resale home has location, exact valuation, and a history. The new purchase provides an all new home to the purchaser, and it also allows the home buyer to customize the property to fit your needs. Whatever your family decides, it is always best to analyze all options before deciding.
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