I'm trying to find out which one will have a better resale value after 2-3 years.
2007-12-13 03:52:48 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It won't make a difference if you are trying to compare houses of quite recent vintage. You might consider, however, purchase costs. When you buy new, you may or may not get appliances, window treatments and landscaping costs included in the purchase price.
If you buy 'used', those items are generally included in the purchase price.
2007-12-13 03:57:48 · answer #1 · answered by acermill 7 · 0⤊ 0⤋
That's a good question, but not so easy to answer!
Right now, both new home builder sales, as well as owner resales, are down. That makes both anxious to sell!
It's hard to say what the real estate market will be in 2-3 years, but my educated guess is rising, probably beginning in 2009.
I don't think it matters whether you buy new or slightly older. I think what matters the most is how much under the current market value you can purchase the home. There are builders who NEED to sell units, but there are also many homeowners who are extremely motivated to see...particularly if their ARM rate is adjusting and they can't afford the new payment.
My advice is to get with a good REALTOR who will give you market data so you can tell whether a particular property is a "buy" or not.
If you have trouble finding a REALTOR you like, let me know. I'm a REALTOR and may know (or know of) someone in your area.
Good luck...this is a good time to buy!
2007-12-17 13:46:41 · answer #2 · answered by Anonymous · 0⤊ 0⤋
If you want to sell after only 2 or 3 years, your best bet would be to buy a "fixer-upper" and complete the upgrades yourself. Whether buying new or old, with the way most current real estate market is, there is very little chance that you would even be able to resell at what you bought for.
2007-12-13 12:00:04 · answer #3 · answered by Slassy Girl 6 · 0⤊ 0⤋
If you are going to make any money,then you make it when you buy. If you can find a home (new or Older) that has equity in it and then what the market bares for 2 to 3 years,usually 5% depending where you are (could be more,could be less) then you will be doing great.
Example:
Market Value-------------$150,000
Purchase Price-----------$125,000
Equity of $25,000
5% per year
1. $157.500
2.$165.375
profit: $40,373.00
Always make your money on the front because you will have to hold one for years to make it on the end.
2007-12-13 12:21:55 · answer #4 · answered by Anonymous · 1⤊ 0⤋
As Acermill said, it isn't going to matter much, if at all.
Buy the house in the most desirable location for best resale.
2007-12-13 12:37:45 · answer #5 · answered by godged 7 · 1⤊ 0⤋
in the present market, you'll be lucky if it's worth the same in 3 yrs and you'll lose money because you'll have to pay 6% brokers commission - house's are not good short term investments - at least not now
2007-12-13 15:44:24 · answer #6 · answered by Anonymous · 0⤊ 0⤋