If you’re ready to buy a house, you have a choice to make: do you want to buy an existing home, or is new construction a better option for you? Some people don’t really have a preference, but others do wonder if new homes are a better investment in the long run. Will these new homes retain their value, or are they like new cars and immediately lose their resell value as soon as you move in? There are a number of new homes for sale in Chandler and Gilbert AZ, so understanding, if they’re a good investment or not, can be important to your house search.
There’s No One-Size-Fits-All Answer
Like many parts of the home buying process, there’s no quick and easy answer to whether or not a new home is a right investment for you. There are a number of factors involved that will have an impact on your decision.
Of course, the price of the home is going to play a large role in your decision. With existing homes, their price is generally determined by the housing market. The homeowner is going to look at other homes in the neighborhood and take into account the overall market when pricing the house. This price is often negotiable, too.
With a new build, however, the price is based on the labor and materials that went into building the house plus the market. New construction is often more expensive than existing homes because the builder has to recoup all of these costs. They also may not be open to negotiating—the price you see is often what you will have to pay.
Other Monthly Costs
You do have to keep in mind that the price of the home isn’t the only cost of owning it. You also have property taxes, homeowners insurance, utilities, and may have HOA fees and other costs. All of these add to your monthly expenses. If you fail to take these costs into account, you may find that your monthly budget is stretched tighter than you expected it to be.
With existing homes in Gilbert, you can look up the tax information online, plus the current owner may be willing to share their average utility costs and other fees. Unfortunately, with a new home, the builder can only estimate what utility costs might be. They may be able to point out the energy-saving windows, appliances, and other features, but that doesn’t give you much of an idea of what your costs will be.
Older Homes Have More Costs in the Long Term
When you buy a new home, you know you’re getting a new roof, new plumbing, new appliances, and more. There won’t be anything that’s not done to current building codes. You’ll have energy-efficient features and may even have a say in things such as flooring, finishings, and colors. Of course, this comes at a cost, and that’s why new homes often have higher list prices. With an existing home, you may pay less now, but you may find that you have unexpected costs as things break over the years. Your inspection may give you an idea of what will go wrong, but you’re likely to come across problems over the years. That’s not to say that a new home will be perfect for decades, but you’re less likely to have unexpected emergencies.
A new home is also likely to come with a warranty. This warranty will cover the cost of specific features if something does go wrong within a certain time frame. With existing homes, you may be able to get the homeowner to purchase a home warranty for you, but these warranties are not as comprehensive. You also have to pay to renew them every year.
Is a New Home Right for You?
To determine if a new home is a better investment, Feel free to chat with me anytime. We can look over your finances, your needs, and the houses on the market to help you determine whether a new build or an existing home is right for you. Contact me today!
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