There seems to be no definitive answer to the never-ending question home buyers ask themselves: should I buy a new home or used? Then, seemingly dozens of questions arise, such as how do I find my home, what is my budget, and what is the home buying process in general. In this blog, the pros and cons for each are going to be addressed to hopefully help you find your next home (and BuyNewBecause!).
Right off the bat, yes, the sticker price on a pre-owned home is much lower than a new home. For that reason alone, many are convinced that a pre-owned home will be a better option, because who does not like saving money? Buyers should be cautious of this mindset. Many costs of used homes tend to come after the sticker price, hidden fees such as repair costs, higher maintenance costs, and higher loan interest rates. On top of that, a new home is going to save you a lot of time and trouble. Depending on the time and resources you have available, you should consider the luxuries that a new home provides that is included in that higher price tag. At the end of the day, part of the premium paid for new homes is convenience and ease.
As for the other important processes of home buying is acquiring the funds to buy each home, purchasing the home, and once the house is purchased, the move. Although both buying a new and used home can be a challenge, new homes tend to be a much easier process for applying for loans. The mortgage process favors new homes in many aspects because the banks incur less risk when buyers choose to purchase a home that is up to code, safe, and created with modern equipment (more on that later!).
Once you have the funds acquired, or at least a plan, a used home can present more problems with competition. Used homes are in limited supply and high demand, whereas new homes are aplenty and always being made in your area. Nothing can be more frustrating than finally finding a used home that fits your specifications to find that you are on a waitlist. A new home takes the stress out of all of this.
Then, as for the moving process, previous tenants can be a pain. Not only do you have to schedule your move-in date according to their schedule, it is very uncertain if the previous tenants actually took care of the house, and their move out could reveal hidden problems. Uncertainties like this can be avoided by not having previous tenants or owners.
Finally, you have to consider the long-run, and whether the premium for a new home will pay for itself in a few years. New homes are constructed with modern technology that is more energy efficient and effective. Better efficiency comes with less power use, and a smaller electricity and water bill per month. Because these homes are built using modern technology, you can be sure that they are up to current safety codes, and it is better to be safe than sorry.
It should be said that buying a new home is not something to be taken lightly. However, new homes are not as out of reach as they might seem!