Buying first home, do I go previously built (5-10yr) or buy new spec home. Been hearing they are all crap?

Question

Asking around we find more 'bad' developers, and negative opinons of newly built homes in new subdivisons, than really any that are good. We want to move into a new subdivions with a new home in the STL area, but haven't heard much good about the quality of these new homes. Really want to buy a new home in a new subdivison, live there for 5-7yr, and then sell for a decent profit to build a home per our own specs working with family on a daily basis to ensure it is built right. We could buy an existing home (say 5 to 10 years old) live for 5 years, then sell to build, but think a new home in a new subdivision would make us a better 5 yr investment. Thoughts/Advice please?

Answer 1

My husband and I currently are moving from our home we built 7 yrs. ago and are making a 65,000 profit off the sale. We're moving from Arnold, down to Pevely because you can build more house for less money. When be started in Arnold, nothing was around us as far as business, now we got everything around us, which increases the value of our home. We expect the same to happen at our next new home. It's always great to start new, you get no surprises, and still havethe benefit of warranties if something does go wrong. Also when you do decide to move again, you wont be selling a 15-20 yr home, you will be selling a 5 year old home. I would never want to buy a home that has had more than 1 owner. Too many hidden problems. I understand your builder scare, so ask a ton of questions and go everyday, that's what we do, and let them know your watching them. Good luck!

Answer 2

When you build a new house, you are basically going into partnership with the builder. You provide the capital, he provides the labor. If he knows what he's doing, has a good, talented experienced crew, uses good subcontractors, and you're building a fairly standard house, you can come out of this in good shape.

But if the crews are raw, or if the builder is new at this, or the subs are third stringers, you can run into problems. If the contractor doesn't pay his bills, you are in trouble. If the house design is some modernistic design that the builder has never done before, you're paying him to learn.

And if the neighborhood doesn't develop the way you expect, you can be in trouble. Or if one neighbor puts up half a house, and runs out of money, your place looks shabby through no fault of your own, or your builder.

I'd look really hard at established houses. You can see what the neighborhood is like, and you can hire an inspector to evaluate the house for you before you buy.

If it were me, I'd look hard at existing houses in established neighborhoods. I think you'd be better off to find the house you want now, and not have to sell and move in 5-10 years. In 5-10 years, the cost per square foot of a new house can only go higher and higher.

Answer 3

I personally dont like new subdivisions but for different reasons. In a new subdivision, specially if the home are being built and no neighbors yet, you never know who your neighbors are going to be... I prefer established older neighborhoods for you pretty much can tell the type of neighbors you are getting... And that is important. Remember, One sells when one buys.... Ask yourself would a potential buyer buy my house in this neighborhood and with these neighbors...? Drive around the neighborhood on weekends...too many cars in the drive-ways? People doing mechanics? Look at the school district...are this the people I want my children associating with? If the answer is no, chances are your potential buyer at the time you want to sell will probably say the same... See, in a Brand new neighborhood when neighbors have not yet moved in you wont be able to answer those questions... I hope I have been of help,...good luck