In a previous blog post, we discussed some of the different pros and cons of purchasing a fixer-upper home. In this article, we compare some of the same types of advantages and disadvantages, but for the complete opposite: New construction homes. Depending on where you’re purchasing property, you may not have the option of buying a new construction. But with more and more new constructions popping up throughout the country, this could be one of the ideas you’re exploring. Some pros and cons to consider:
If you are purchasing a new construction home with an HOA fee, that could mean that your neighborhood will have some fun amenities, too. If you want a neighborhood with amenities, older communities might not have what you’re looking for. But if you really don’t care about the amenities, you might not want to pay extra for them by purchasing a home that’s part of a new community.
Most new homes are now built with energy efficiency in mind, which can help keep your utility bills low each month. This can include everything from top-notch insulation to brand new, energy-efficient appliances. In fact, some new construction homes offer a guarantee to homebuyers that their annual utility bills won’t exceed a certain amount. With an older home, you may not be too sure what you’re going to get. You could always make some changes to an older home to make it more energy efficient—such as add proper insulation—but it’s nice to know that your home has been built that way from the get-go.
One disadvantage to consider for new constructions is the negotiation process. When you’re dealing with an older home, it’s usually a private seller you’ll be working with, and sellers usually expect that homebuyers will make offers that are lower than the listing price. The only exception to this would usually be in an area with a very high housing demand. As such, when buying an older home, you have a pretty good chance at negotiating a lower price. New constructions, on the other hand, are often built by larger companies that are very firm with their listing prices. You may be able to negotiate an upgrade or other perk, but when it comes to actual the sale price of the home, what you see is often what you’ll need to pay. This doesn’t mean that new developments won’t run specials or offer other incentives to entice homebuyers—it just means you likely won’t get a better deal than what’s already on the table.
Buying a home can be an intense experience for anyone. But if you’re buying a home for the first time and you’re unfamiliar with a lot of aspects of home buying, the entire process can feel pretty overwhelming, no matter what option you choose. There is a lot involved with new construction homes, and some first-time homebuyers might want to avoid all of the extra steps involved. At the same, buying a fixer-upper can be an overwhelming project for a first-time homebuyer as well. For the first-time homebuyer looking for the most simplified experience, usually opting for an older home is best—but not a home that’s too old and needs work.
Something in between
Maybe you don’t like the idea of building your own home from the ground up, and you don’t want to deal with all of the different steps that are involved. But a home that’s been around for a long time may not be the most appealing option to you, either. When it comes to using the word “old” to describe a home, it’s definitely subjective—an old home to one person might mean something that’s at least 50-years-old, whereas someone else might think anything older than 10-years-old is considered an old home. If you want a newer home, as in—just a couple years old—it’s certainly possible, and without purchasing a brand new construction. Check out local builders and communities that they finished within the last couple years, and see if there are any homebuyers that already have their home for sale. It may seem like a long shot, but you’d be surprised. For example, perhaps a family needs to relocate due to a job change. This can give you the best of both worlds almost—you can live in a new and modern home, but you won’t live in a construction zone and you don’t have to go through the process of building your home from start to finish. Additionally, some homebuilders—in an attempt to develop the community faster, and without waiting to sell lots to homebuyers—will build a few homes with their own customizations and list them as quick delivery homes. You won’t get to make your style selections or pick out your floor plan, but if you don’t care too much about that and care more about living in a brand new home, this can be a good option—especially if you’re in a time crunch.
If you’ve always wanted to buy a home, but needed the extra cash to make it possible, Peachtree Financial Solutions may be able to help. From down payments to closing costs, the different expenses that come with buying a home can be overwhelming. But if you’re receiving long-term payments from an annuity or structured settlement, you could already have the money you need, but it’s tied up in a long-term payment stream. This is how Peachtree Financial Solutions may be able to help: we can potentially purchase some or all of your future payments, and provide you with that money sooner, but in one lump sum payment. Contact Peachtree Financial Solutions today to learn more about selling future payments for a lump sum of cash. We will be happy to provide you with more information, explore your different options, and provide you with a completely free quote.
Nothing above is meant to provide financial, tax, or legal advice. You should meet with appropriate professionals for such services.