With 30-year mortgage rates still at all-time lows, it’s a good time to buy a house if your circumstances allow. But the question is – do you buy a new home or an existing one? It may be tempting to take advantage of the low prices you can find on foreclosures. But these homes can be a risky investment, compared to the benefits that a new home offers.
U.S. News and World Report recently pointed out 9 reasons to buy a new home over a resale. One of the benefits the article cited is the ability to design your home the way you want it, inside and out. With new construction, you can choose your floor plan, select cabinets and countertops, paint colors and finishes, and landscaping. With an existing home, you have to live with the previous owner’s style, or spend money to change things you don’t like, such as wall colors and appliances.
Another major advantage to buying a new home is that it will be more energy efficient than a resale home. Energy conservation codes get updated every 3 years, so a new home features the latest requirements like higher-efficiency insulation, doors and windows. Landon Homes takes these requirements a step further by doing 2”x 6” exterior walls that hold up to 50% more insulation than industry standard, tankless water heaters and highly rated appliances and water-saving faucets and shower heads that minimize utility bills. A resale home usually has to be retrofitted with these features, at an additional cost.
Home repairs and maintenance costs also play a role in the home buying process. An existing home or a foreclosure may need major repairs if the owner didn’t take care of it properly. That could put a big dent in your wallet. A new home is covered by a builder’s warranty for at least a year, while other major components are usually warrantied for extended periods.
Home builders may also be able to offer more financing options due to their relationships with lenders. As a result, you could get a deal on closing costs, a buy down of your interest rate, or even special upgrade financing. Fewer individual sellers have room to negotiate on these terms, so a new home might be your best option if financing is important to you.
If you’re looking for a new home in the Dallas-Fort Worth area, visit Landon Homes to learn about our better built by design, energy-efficient homes that respect both the environment and your budget.