Used Versus New Homes for Buyers

As odd as it may sound, the first real question you will face when you go to buy a home is what kind of property is best? Put another way, we are talking about used versus new homes for buyers.

With nearly everything that we buy, we focus on getting something new. This is particularly true as the dollar value goes up. If you are going to pay a couple hundred thousand dollars for a place to live, it certain seems that everything should be new. The truth of the matter is this may not be the case.

Any comparison of used versus new homes requires a certain amount of perspective. While we associate new with good, this doesn’t really translate as directly to real estate. A new home comes with a lot of risk when evaluating not only whether it will grow in value, but maintain it. Let’s take a closer look.

Location, location, location. This is the number one rule of real estate. You want to buy in a good neighborhood. With a new home, you are often assuming the neighborhood is going to be good, but you really don’t know. This is a pretty big risk. With a used home, this is usually not an issue. The neighborhood is pretty much established and you can gauge whether it is too loud or whatever.

A second issue that arises with the new versus used home question is pricing. As you well know, you are always going to pay more for the newness of things. Put in real estate terms, new homes in developments are going to run you more. Just as important, the listed prices for the new home is going to be a lot less flexible than the price of a used home.

A third issue to watch out for is the home experience. In a new community, you typically are not shown the new homes. Instead, you are paraded through a model home. The model home, of course, has beautiful landscaping, stunning furniture and so on. The entire theme is designed to sell the property to you. Once you buy a home, you may have remorse because your home is a step or two down from the model. With a used home, you pretty much get what you see.

Ultimately, the answer to the new versus used home question is a personal one. When making it, try to view the transaction as a business deal and exclude the emotional attachments that can arise.

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