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When you’re looking for a new home, should you purchase an existing one or have a brand new house built? Since this is a major decision, it’s important to learn more about the advantages of new construction vs. existing construction. Keep the following in mind, so you can compare the benefits of both in order to help you make your home buying decision.
Cost
In terms of the cost to purchase new or existing construction, you can expect to pay more for a newly built house. When you buy new construction, you’re paying for labor, materials, plumbing installation, electrical installation and other expenses that you normally wouldn’t have with an existing property. While buying existing construction might cost less upfront, keep in mind that you could end up paying more over time, such as if you need do any upgrades or remodeling. You’re also more likely to have repair expenses with existing construction, especially if you’re purchasing an older home.
Floor Plans
One of the biggest advantages of new construction is having a customizable floor plan. When you purchase new construction, you have the opportunity to create the ideal floor plan based on your needs and design preferences. When you’re looking into existing homes, your options are more limited. Unless you’re willing to do major remodeling or renovations, which can be highly expensive and time-consuming, what you see is what you’ll be getting with an existing home’s floor plan.
Property Values
Whether you’re considering buying new construction or existing construction, paying attention to property values is important. While property values change over time, you’ll want to have a home that goes up in value. When you buy an existing home, determining the value is straightforward. When you purchase new construction, especially in a new development or community, it’s not as easy to determine property values. While this might seem risky, keep in mind that there are many ways to raise the property value of your newly built home, such as making a few upgrades over time.
Financing Options
Many people need to explore financing options when purchasing a new home. When you’re considering buying an existing property, getting financing for it can be more difficult. If the property is older and needs a lot of work, such as remodeling or repairs, being able to get the financing you need can be even harder. When you purchase new construction, financing is generally easier to get if you have options available through your builder. This can provide you with a much less difficult way to qualify for a mortgage.
Appliances
Appliances can be a significant expense for homeowners, whether you need to buy new ones or have existing ones repaired. When you purchase existing construction, you might get older appliances with the home. In this case, you’ll need to consider the cost of repairing or replacing these appliances when you move in. Older appliances are also going to cost more when it comes to your energy bills. When you purchase new construction, you’ll be getting brand new ones that are more likely to be energy efficient, which helps you save on your energy bills.
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