New Homes vs Existing Homes

Which Type of Home Do You Prefer?

New Homes

Freshly constructed homes have good quality control standards, newer construction techniques, and better energy efficiency than many older homes. They often carry a 1+ year warranty and good financing options. The downside is that while they are easy to get into, it is very difficult to sell them for a few years (especially if the builder is still in the subdivision), and the final price is often higher than an older home (though they usually require very little up-front money, and many builders will give thousands of dollars of upgrades and incentives.) The neighborhood will not be established, there will be very few shade trees like in an older neighborhood, and it will have more of a frontier feel. If you like “new” and “shiny” like a new car, then the clean smell of a new home will be your thing.

Existing Homes

These are owned by homeowners who want to sell their homes. They have been seasoned, and may be better constructed than newer homes. Many people like the fact that they have the charm and history of having been lived in – in fact, many buyers think that a new home is “cold” if it hasn’t been lived in. Their age gives them respectability, and they are in established neighborhoods with tall trees and established neighbors and schools. They may be funky/customized with interesting quirks. These are for people who like “established” OR “different.” They are much easier to sell soon after you buy one. Many also carry a 1-year warranty. They may not appeal to people who like being the first in a home or who want one built especially for them.

HUD Foreclosures

There are many types of foreclosed homes, but the best (in my opinion) is the HUD foreclosure. I’ve found them to be underpriced and in generally good condition, many requiring just new carpet and paint. The process is much easier than for other foreclosures which have large amounts of paperwork, contingencies, and long waiting periods for the process to be finished. This is an option for someone who has the time, knowledge, and desire to buy a “not ready to move into” home.

So, which is better for you: a New Home, an Existing home, or a HUD Foreclosure?

Which do you like better – New, Existing, or HUD? Some people like new cars, some people like classics, and some people like fixer-uppers. People who like one may not like the others, though many will like all. Many times, you won’t know ahead of time and the perfect home will jump out at you after you see it, online, inside, and out.