A "New" Look at Today's Housing Market
If you’re on the buying end of the real estate bargaining table right now, lucky you. Mortgage rates are down. Home inventories are up. And if you’ve got a little nest egg built up to put down, that’s even better. You are, as they say, in the proverbial buyer’s seat. From your position, you have a lot of purchasing options and building a new home has never been more affordable.
There have always been pros and cons on both sides of the new vs. resale argument. In today’s housing market, it seems the scales are tipping more on the side of brand-new. See for yourself.
Price. When housing slows down, builders are more willing to bargain and tend to cut their prices faster than homeowners. There are a couple of reasons for that. Homebuilders are not typically emotionally attached to their homes like homeowners are. And homebuilders need the cash. “In today’s market,” says Don Skelly, Sales Manager for Hanson Builders, “you can actually buy new for less than a used home — making this an excellent time to purchase.” On Hanson Builders’ website, they compare re-sales to their own new construction in the same neighborhoods. There’s no better way to determine relative cost savings.
Maintenance. Compared to existing, everything about a new home is new — windows, roof, siding, furnace, air conditioning, appliances, water heater, plumbing and electrical, so there shouldn’t be any maintenance costs. When you estimate your monthly mortgage on a new home, you shouldn’t have to worry about maintenance costs which can crop up all the time in a used or in an especially older home. New homes also come with warranties that will cover the cost of most major problems. Just make sure you know exactly what’s covered.
Location. Naturally this is an important consideration for both new and existing homes. New communities generally have access to newer schools and newer retail areas. Also, since they are typically built where there is land available, you may find it appealing to live in the wide-open spaces. Many new communities even offer amenities like clubhouses, swimming pools, playgrounds, biking and jogging trails for the whole family to enjoy. Many newly developed subdivisions have architectural controls and covenants to help maintain property values. And people that move into new neighborhoods generally have more in common with one another, since what appeals to you will also appeal to others like you.
Design. With angled walls, unique woodworking, distinctive windows and interesting nooks and crannies in many new home designs, you get the 21st century equivalent of charm and character. New homes generally provide more attractive, spacious and functional layouts, too, with family kitchens, adjoining great rooms, sunrooms, master suites and baths, and main- and second-floor laundries. Some even have separate media rooms and are pre-wired for TVs, speakers, phone, cable, computers and security.
Energy Efficiency. In this category, new construction wins hands-down. With glazed and thermal windows, thicker insulation and energy-efficient heating and cooling equipment, new homes are more comfortable and more affordable to live in. Even the kitchen and laundry areas are equipped with energy-saving appliances these days. And some lenders will actually allow buyers to finance more on a new energy-efficient home.
The bottom line is, real estate is still an outstanding investment. There are tax incentives, lifestyle benefits and your home will appreciate in value over time. Just use your head when you’re ready to buy. Work with a reputable builder who stands behind the home. Read the fine print. Deal with a builder who has a substantial net worth. And whether new or used, have the home inspected before you sign on the dotted line. When you follow these precautions and take everything into consideration, chances are very good that you will live happily ever after.
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