If you’re planning to sell your house and move, you probably know there’s been a shortage of options available. But here’s the good news: the supply of homes for sale has grown in a lot of markets this year – and that’s not just existing, or previously-owned, homes. It’s true for newly built homes too.
So how do you decide which route to go? Do you buy an existing home or a brand-new one? The choice is yours – you just need to figure out what’s most important to you.
Perks of a Newly Built Home
Here are some benefits of buying a newly built home right now:
- Brand New Everything: Enjoy never-been-used appliances and materials, ensuring everything is in top condition.
- Energy Efficiency: Use energy-efficient options to save money and reduce your environmental footprint.
- Minimal Repairs: New homes typically require fewer repairs, and you can benefit from builder warranties.
- Builder Concessions: Many builders are offering concessions and are more willing to negotiate to make a sale happen.
In today’s market, a lot of builders are focusing on selling their current inventory before they add more homes to their mix. This has led to one other potential perk: the median price for a newly built home in today’s market is actually lower than the median price of an existing home, which isn’t usually the case. Ralph McLaughlin, Senior Economist at Realtor.com, shares:
“Homebuyers who are looking for that ‘new-home smell’ may be in a relatively friendlier market than times past when new homes were considerably more expensive than used ones.”
If you’re interested in seeing what builders nearby have to offer, lean on your real estate agent. Their knowledge of local builders, new communities, and builder contracts will be important in this process.
Perks of an Existing Home
Now, let’s compare that to the benefits of buying an existing home:
- Established Neighborhoods: Join an established neighborhood that you can get a feel for before moving in.
- Variety of Styles: Choose from a wider variety of floorplans and styles.
- Lived-In Charm: Appreciate the charm and character that only an older home can provide.
- Mature Landscaping: Enjoy the privacy and curb appeal of mature trees and landscaping.
In addition to these lifestyle benefits, there’s strategic value to buying an existing home, too. You can always make upgrades to an existing home down the road to give it some of the latest features available. This gives you the best of both worlds: the charm and neighborhood you want, plus the ability to add modern touches over time, which can increase the home’s value. As LendingTree explains:
“. . . they can personalize it and possibly increase its potential resale value with cosmetic upgrades . . . Plus, if a home comes with physical details or stories that add charm, in some cases, these elements are attractive enough to add to a home’s resale value . . .”
Bottom Line
There are a lot of factors that go into deciding whether to buy an existing home or a newly built one after you sell, but it’s essential in today’s market to understand the opportunities you can find in both. Work with a local housing market professional to explore your options and make the best decision for your next move.
