Are you ready to move into a new home? You may have a goal in mind of buying a brand new house that is up to the standards that you have come to expect. But what if a new home in the area you want to live in is beyond your budget? It may be worth your while to explore some pre-owned options. Here are the pros and cons for you to keep in mind.
Which One Will Cost You More?
One of the very first things that you should keep in mind is how much a new versus a pre-owned home will cost you. You may think that a new home will set you back more than a previously owned one. This is because the home will be brand new. All of the latest luxuries and amenities are bound to be included as part of the final price.
It is true that new homes do currently tend to cost about 20 percent more than a pre-owned home. This is a factor that you will need to keep in mind when you contact a new home builder. But you should also note the fact that all of these included amenities will ensure that the home runs far more efficiently and cost-effectively than an older one.
On the other hand, a pre-owned home will usually cost less. The tradeoff is that it may be a “fixer-upper” deal that enables you to bank this savings. You may have to spend a certain amount of money on various renovations in order to make the home livable according to your personal standards. You can consider this a hidden cost.
But if you should manage to find a deal on an older home that is still in great shape, why not consider it? The house may have been renovated by its former owner with the specific object of raising its resale value. You may pay a price that is more similar to that of a new home. But if the price and the home are right, why not take the deal?
Are You a First-Time Buyer?
If you are a first-time homebuyer, you may not have the largest budget to choose a property with. If this is the case, you will probably have a better time looking at pre-owned homes. These will cost you less and may be easier for you to secure a loan for buying. You may also have a larger range of homes to choose from if you decide on this option.
If money is no issue, you may as well spring for a new home. You can probably get a loan on very good terms to buy a home or to renovate your existing home. You may even be fortunate enough to forego a conventional financing arrangement. If this is the case, you can easily have a home built in any location that you choose. For most other people, this is less of an easy option.
What Area Do You Want to Live In?
There is yet another issue that you may wish to ponder in advance. This will concern just where you want to live and call your new home town. The area that you choose to reside in will normally have its quota of both new and pre-owned homes. It will be up to you to make a choice as to which type of property is best for your personal needs.
You will need to consider a wide range of factors. These will be what property taxes are like for new and older homes, what the local schools and amenities are like, and even what bank loan rates are like. All of these factors will play a part in helping you decide to buy a new or pre-owned home.
Choose the Option That’s Right for You
There are various pros and cons to owning a new versus a pre-owned home. It will be up to you to do all in your power to make the right choice. The only limit here is the size of your budget as well as the scope of your imagination. You can do wonders with a pre-owned home just as easily as you can live comfortably within a brand new one.