The Pros and Cons Of Buying a New Home Versus an Existing Home
Buying a house for the first time is intimidating, especially when you’re confronted with the question of whether to build a new home or buy an existing one. Zillow reports that about half of all buyers look for homes that have never been lived in, and with good reason. When you a brand new home, you don’t have to worry about needing to make repairs sooner rather than later. Of course, there are both pros and cons to both real estate options. Let’s look into a few of them.
New House Pro: No Repairs Necessary
When you buy a brand new house that has never been lived in before, you’re not taking on anyone else’s damages. Essentially, you’re moving into a blank slate. This is why a lot of real estate agents recommend new houses to new buyers. If you’re not quite up to the idea of renovations, a new house is the way to go.
New House Con: More Expensive
A new house is often going to be more expensive outright than an older home, in part because it doesn’t need any of those aforementioned repairs and renovations. First-time home buyers can have vastly ranging budgets, depending on their histories and how much they have saved. But investing more in a brand new home is something to consider carefully, as you can’t be sure that your area, especially if it’s a new neighborhood, will maintain its value over time. This is something to consult your real estate agents about very frankly before moving forward with a sale.
Existing Home Pro: Easier To Buy
The 2008 financial crisis has had longstanding consequences. The issue that lenders ran into at the time is that they gave out several new home loans that buyers could not keep up with, which has led to lenders being understandably wary about issuing new home loans today. Though some lenders have gradually become more lenient, it remains more difficult to get a loan for a new home than it is for an existing home. If you do get approved for a new home loan, you may find that the rates offered may not be as good as they would be for an existing home.
Existing Home Con: They Require Adapting
A new home can be made the way you need it to be, as you want it in the moment. While model homes offer a blank slate of what you’re looking for, plans can often be altered to your specifications, making a new home that you build on your own perfect for your needs. An existing home may be close to what you need exactly, but you’ll likely have to adapt to certain factors, especially if your needs are more extensive. However, experienced real estate agents can often tailor their searches to ensure that they get as much of what you want and need in a home as possible, while respecting your budget.
Clearly, there is no perfect decision. Buying a brand new home has its advantages and disadvantages, as does buying an existing home. This is why, especially if you’re a first-time buyer, you need to work with a real estate company that you trust to make an informed final decision. Ultimately, you can find a great home either way. You just need to do your research to make sure that you’re making the best possible choice.