Buy a New Home—or Existing Home?
There are lots of advantages to buying a brand-new home. But there are also advantages to buying an older, existing home.
For first-time home buyers, here are a few things to consider—before making your final decision.
Existing homes can cost less—for the same space.
According to the National Association of Home Builders (NAHB), the median price for a new home nationwide in April 2016 was $320,300—but only $232,000 for an equivalent existing home. In other words, new homes right now can cost $88,000 more than existing homes—a difference of over 27%.
There are more existing homes on the market.
In that same month, 5.45 million existing homes were sold, compared to only 619,000 new homes (according to NAHB). That means only 10.2% of all homes sold in the U.S. right now are new homes.
Newer homes usually have cooler technology.
If you enjoy newer home tech gadgets—like “smart” appliances, whole-house wi-fi, USB outlets, electric vehicle charging stations, or programmable thermostats and window treatments—just know that you’re more likely to find them in a new home.
Newer homes require less maintenance and fewer repairs.
As houses age, they require more repairs and maintenance—which is an added expense. (However, you can always get a home warranty to help with this. For example, every time you buy a home through ReeceNichols, you can buy a warranty through our HomeWarranty Plus plan from our partner, AB May) Newer homes typically don’t need major repairs for awhile.
Better locations usually have existing homes.
The best locations in town are already occupied—by older, existing homes. Newer homes sometimes require a longer commute (or less-desirable location) away from downtown.
Existing homes have more mature landscaping.
A newer home may require you to invest heavily in landscaping, which takes awhile to fully mature. Consider the time, money, and effort involved in planting trees, shrubs, and flowers in a new home—plus the time you’ll wait to enjoy them.
Newer homes have bigger closets and bathrooms.
In general, closet and bathroom size has increased over the past 50 years, as new homes have been built. Newer homes feature larger bathrooms and storage space, which many families prefer.
Your ReeceNichols agent can help you find the perfect new home—or existing home. Contact us today.