With the amount of new construction homes continuing to increase in our area, it makes you wonder if it makes sense to buy an older resale home or a brand new home. There are several pluses and minuses to either; the question is what fits into your goal of home ownership? Here are some things to consider:
- Do you want a warranty? Buying brand new you most likely will get a home warranty from the builder. This will allow you the peace of mind knowing that you are getting a product that the builder stands behind and if anything goes wrong, they will fix it. Every builder is different though. Some allow more time for the warranty than others. Make sure you look into this before purchasing. It’s possible to buy an older home with a warranty on the major appliances and equipment, but it’s not usually as in depth as a new construction home warranty.
- How much time do you have? It can take 6 months to a year or more to build a brand new home. If you buy a resale home that is already built, you can close and take ownership right away. If you don’t mind waiting, then new construction is a great way to go.
- Builders are raising prices. I know some builders are raising their prices a few thousand dollars every time they sell two houses. They will keep doing it too, as long as people keep buying the houses. You can’t blame them; that’s what makes the market the market.
- If you can buy brand new, then why not get brand new? You don’t inherit someone else’s problems and it’s kind of nice to know that you are the first person to be living in a house. It really brings out the pride of home ownership.
- Prices can vary a lot. You can easily pick up a foreclosure for a fraction of what a brand new home would cost. However, when you factor in all the repair costs and updating you need to do, then what price are you at? Also, you still have an old house that looks new. That’s much different than a new house!
- Insurance can be difficult and more costly to obtain on older homes. Don’t forget to factor in all your costs!
Consider all the above points and take advantage of today’s market. There are lots of options with both new and old construction homes. Happy buying!
Gabe Mellein was voted a Top Real Estate Agent – Exceptional in Service and Overall Satisfaction by Gulfshore Life Magazine in 2012 and 2013. He is the broker of Gulf Pointe Properties, Inc and has over 9 years experience in the SW Florida Real Estate Market. He is a member of The Naples Area Board of Realtors, Bonita Springs – Estero Association of Realtors, Realtor Association of Greater Fort Myers and the Beach, The Florida Association of Realtors, The National Association of Realtors, and is nationally certified in Feng Shui for Real Estate. Need real estate help? Please contact Gabe at: 239.825.2234, Gabe@GulfPointeProperties.com or www.GulfPointeProperties.com
