New House or Pre-Owned?

Question

I am looking ot buy a new house. Shoudl I go with a brand new one or pre-owned one? Which is the smarter move and why?

Answer 1

There is no automatic better choice, it's a mix of what you want and the quality of the houses available to you.

New construction does offer a builder warranty for fixes and you can be fairly confident that weird things haven't been flushed into the plumbing system and such. If you get it built for you from the get-go you could put some modifications in as well (make it accessible, have the right cabinetry, flooring you like, etc.). So those are pluses. However, the smart buyer WILL have a home inspection because too many new builds are sloppily done and the inspections most places by the local government are low quality (experience tells me this).

Pre-owned should, of course, also be inspected--and it may result in the owner making repairs or issuing a credit for what was discovered. You want to always pay particular attention to: roof, plumbing, electrical, foundation, and termite issues. IF the house has been renovated in any way, also want to make sure permits were pulled if needed and that any additions, etc. meet code. HVAC should get a good look.

Advantages to a pre-owned CAN include: they probably have "window treatments" that can really add up in cost. Ceiling fans are common throughout the US--again, expensive to do a house full of them. Landscaping can cost an arm and a leg. If the house has a pool, they probably paid far in excess of what they're recouping on sale--plus you didn't have to put up with the construction of it.

There's a decent chance you can meet your neighbors and see if they're good folks or you're going to have issues.

Sometimes there are pluses to more established neighborhoods. If you don't like HOAs, odds are you'll need a pre-owned as they seem to be the norm nowadays.

Answer 2

It is a matter of preference. Some people only want new houses that have never been lived in. They feel as if buying a pre-owned house is like buying used clothing or a car. We have always bought pre-owned homes because they had more character and the landscaping is mature. I don't like new homes because they are just too blank and cookie cutter looking. You can pick out flooring, tile, fixtures and appliances in a new home if you buy it before it is completed. Price wise you may or may not be getting more for your money. In this area new homes are at least $25-50,000 more than pre-owned ones. If not then they are cheaply made. Also there are a lot of pre-owned homes for sale here which makes for better negotiation. I think a compromise would be anything less than 5 years old; almost new. The new home bugs will be resolved by then (we hope). There are new home bugs just like there are new car bugs. Go out shopping to see what you get in the new homes in your area. Then compare that to the pre-owned ones. Another thing about new homes is that they are either staged or vacant while pre-owned ones are usually not. It is hard for many buyers to imagine their furniture etc. in a home that is not staged to sell.

Answer 3

Many people think they can build their house the way they want, that's not true. Unless you have all the money in the would, the only person making decisions and have never changed your mind about anything ever in the bast you still won't get it all. Even if you and your spouse can agree on everything you will still forget something or change your mind after its to late. My current home I had built. There were many delays, lots of frustration and unexpected costs. I had to pay about 2k for top soil so I could have a lawn. I never thought about that. I have a modular home because I wanted to make it easy. I have a site built basement foundation and garage. We had our home built because we are in a rural area and there are no codes or inspections out here. We chose modular because they build to a certain code. We also chose it because we thought it would be easier and quicker. Start to move it was about was about six months. We are in our home for about 190k (including the land)and when done it appraised for 265K so it all worked out. Some areas construction costs are lower than others. My area costs are low. That is something else you have to consider.


If you have a place to stay while your home is being built and allot of patience go for it.

If finding not so temporary lodging and you have little patients buy a used home.

Answer 4

All things considered, 'pre-owned' generally gets you more bang for the buck, as long as the house is within a few years of 'new'. Pre-owned will generally get you appliances, window treatments, and completed landscaping for about the same price as new. Plus, all the bugs will probably have been handled by the first owners and the builder.

This, of course, is premised on the assumption that the new house and pre-owned being considered are quite equal and similar properties.

Answer 5

I don't know the system in US but before our prices went crazy here you could get houses for the price of just the land.
If you buy a large block you can subdivide to two blocks.
If you can get a large block big enough for units, it's called a development block.
Check with your council for minimum size of unit block.
Get the most desirable address you can.
Near ocean, preferably. Close to amenities.
If you can get older house and land for price of land,
you may be able to afford two houses.
Stay at home with parents for as long as you can and
tenant can pay off house for you.
Later when all is paid off, maybe area will be more desirable and valuable and you can develop units on the site.
Some people keep buying house after house using tenants to make them rich.
People who want to live in a new house will have to wait a long time to profit. The house depreciates. Unless you are building double brick, block or concrete house I would buy an old house. Brick veneer is just horrible.
Baby boomers have profited enormously but prices are just ridiculous now.