Shiny Objects Can Be Pretty . . . Expensive

Buying an Existing Home

Buying an Existing Home. A few years back, Trulia determined that new homes cost roughly 20% more than similar existing homes (by the way, the same study probably concluded that the sky is blue and that water is wet, but that’s another discussion for another day).  Regardless of the somewhat obvious nature of Trulia’s findings, here are some other things to share with buyers – especially first-time buyers – and they probably all fall under the heading of “Duh, I already knew that, genius!”:

Disadvantages to Buying a New Home
•More expensive than buying used
•Location probably isn’t ideal (new homes are usually farther out from downtown)
•Despite being new, workmanship might be questionable
•Could be subject to costly HOAs
•Neighborhood dynamic is unknown
•Property values might be more volatile
•Construction nearby (eyesore and noisy)
•More cookie-cutter, less unique

Advantages to Buying an Existing Home
•Possibly cheaper
•Better, more central location
•Can buy in an established school district
•Can own in a more reputable and recognized neighborhood
•Old house might have new upgrades
•You can always renovate if need be
•Older houses tend to have more character, custom design
•Could actually be built better than a new home

Most buyers, I’m sure, would be surprised to hear you giving them the advice to spend LESS money on a home – and that should give you even more credibility.

Please see our First time home buyer guide

mortgage, newhomes, prioritylending, realestate

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