Hi, we are considering purchase a property and want to know if anyone have had experience of buying New House vs Used House. What are the advantage and dis-advantage of New and Used houses. We also consider future re-sell value. Anyone can share your experience? Thank you

pcs99

well with a new home, you can move right in , without having to do any repairs.

This advice is from a potential home buyer (me) and not from my limited experience in the real estate field. I wouldn't buy a new home without comparing specs of new home builders. Try to compare those specs to what you think might be the situation with the used home (considering any remodeling and upgrades that have been done over the years). Then consider neighborhood trends and so on. A Realtor can give you neighborhood info which is important. Other things count, too--older neighborhoods have larger trees and some newer neighborhoods are becoming their own little communities, with parks and rec centers. With new homes, maybe you can pick out carpet colors, etc., which makes it a little nicer. Also, consider pros and cons of home owner's assn. Some people want them, some don't. This is what I'm doing, but everyone is different. I know a family that just bought a home specifically so husband could have freedom to work on his old junk cars--they bought in unrestricted area. everyone is different. Good luck.

I've found some pro-con information at www.best-homes-and-rates.com then click on "Brand new homes"

typically, new homes have a premium on their price. Take some time and do your value comparisons and see if it makes sense to you. The inherant value of real estate will be there, but you may find yourself buying more in the new home.

The choice of new or used should depend on your needs and wants. If you don't want to do any work and you need to get in right away new is good. If you like certain architcture or require something an older home has, used is the way to go. Typically, new homes are cheaper since you have not established any equity

LVRE-
Quote- "Typically, new homes are cheaper since you have not established any equity"

I must be a little slow, so could you explain that last comment for us?
Thanks.

I think we still have to consider the expense for trees, lawn, driveway and some upgrading because a new house just come with basic material. And for future re-sell, will it be a big difference between a fairly new house and a 20-25 years house? thanks

I am asked that question by buyers. It really depends on what you want. If you are ok with a new neighborhood and would like to choose your upgrades and colors, get a new home. The resale will be there for your home whether it is old or new. I have a quaint Cape Cod home built in 1946. I am finishing up the landscaping and interior and my friends absolutely love my home. It is solid, plaster walls and ceilings. There is a crawl space underneath the home which makes repairs easy. I am creating equity as I fix it up. New homes won't have any deferred maintenence and generally require no work except for personalizing. Do you want to buy a house you can fix up and increase the value? If it's in a new neighborhood with similar floorplans, you're competing with homes like yours and will not make as much for what you put into it.


Mike
www.liveinvisalia.com

PCS99,
What are you talking about? I am also a builder of custom homes and we always include trees, grass and a driveway. That is what allowances are for as most buyers make their offer while they still have some input into the extras in a new home. If it is a spec house and it is completely finished then it has everything necessary for a buyer to move right in. The decorating is very neutral to appeal to the broadest range of buyers.

Hey Paul,

Maybe you're more generous than some builders.

Like real estate customs different builders in different areas furnish and finish vastly different things. For instance, in some parts of North Carolina buyers moving to my area have told me, garages are not included in most new houses but are extra cost options.

The obvious benefits to most new homes are........well, everything is new and most of the mechanical systems, i.e. HVAC, appliances, etc., are under warranty for a period of time.

One downside is that drapes, shades, and some other things we may take for granted such as garage door openers, mailboxes, and towel bars and racks have to be provided by the new homeowner. In a resale home most of this stuff can be included in your offer.

I work with investors whom pay builders to build a property customized to what you want exactly.

Unfortunately you may not need the services of a real estate agent :rolleyes:

In most cases newly built homes have equity. They appreciate more quickly in developments. You get a brand new home.

But you could score big in some of the more expensive areas. Motivated sellers sometime shave 10-20% off the original listing price. Sometimes it is too hard to determine which is better. It is all about your needs.

I personally would build my dream home. It could be exactly what you have always wanted and not someone else’s dream....

Ya I have seen builders do no landscaping at all. Many of them.

I don't know about generous but I have a landscape designer/contractor that I always work with and I always build in an allowance for landscaping. If it is a total spec house and completes before I have a buyer then I always put in the basic landscape package grass, trees some flower beds and some rock as well and leave a little extra padding for upgrades such as appliances basement finishing materials etc... Depending on the size of the lot and features landscape can run between 5K and 60K. I would not even consider building a home without a garage and around this area it is now at least a 3 car garage.

Allowances and extras are where its at in new houses. You get what you want or at least what you like that you can afford.

hmm im kinda on paul side on this one...lol if i was a buyer..i wouldnt buy a home that didnt have what i wanted,even if the price was good...if it didnt have what i wanted for the price...i'd move on and look for a builder who can give me what i want...hmm me i got lucky in a sence...4 bd victorian, on 1 full acher,with a nice set back...flower bed area,and oil heat,2 zoned cac..and my appliance which i wanted stainless steel,not what the builder wanted to put liike standered basic stuff,and he bent backward more for me cause i wanted porc tiles not the crap ceramic most builders use to save money...some builders do bend for some buyers ,when it comes to new homes,used homes you get this WYSIWUG but my only oops on it is that i have a shared driveway,but it leads directly to my house...thank god my next door neighboor,who shares desided to make his own parking(which costed his ass 8k to do out of his pocket,haha)...cause his didnt come with an area for his cars...oops again,...but anyway...you buy what u want for the price ur confortable with...and work out deals with ur builder...i say dont be afraid to ask,when u dont u dont get,in most situations.