So, you’re thinking about buying a home in Wisconsin. One question you make ask is what’s the difference between a buying a new home and a pre-existing home, and which choice is right for me? Many homebuyers consider both options when thinking about relocating or purchasing a home. Here are a few positives of both options!
Pros of Buying a New Home
- Low Replacement/Repair Costs: New homes are typically move-in ready and won’t come with many home projects. You won’t find yourself spending thousands of dollars on ‘fix-it-up’ projects after you move in. This includes aspects you may not even consider, like roofs, driveways, windows, trim, etc.
- High Energy Efficiency: Energy efficiency rules and regulations at the local, state and national level are always changing. New homes often have to meet greater energy efficiency standards than homes built in past decades. A new home may include energy efficient appliances and efficient insulation to help decrease your recurring, monthly energy expenses.
- Safety Features: Along with increased efficiency regulations, new homes are also held to many safety standards. New homes often include added fire retardants in materials such as carpeting and insulation, providing added safety features.
- High Resale Value: Your home won’t be considered “brand new” when you’re ready to sell; however, a home that is 5-8 years old often has a higher resale value than a home that is well-aged.
Pros of Buying a Pre-Existing Home
- Lower Price: Pre-existing homes are often less expensive initially in comparison to a new home (especially if it is a custom project where you are required to purchase the home materials/labor, in addition to the parcel of land for building). Generally speaking, pre-existing homes are more affordable; however, the needed improvements are something to consider in addition to the price.
- Project-Oriented: Pre-existing homes feature character and charm that may not be replicable in a new home. If you love do-it-yourself projects, a pre-existing home often offers renovation and rehab projects. These home projects are considered a hobby for many people and may increase the homes value down the road.
- More Flexible Loan Options: Generally speaking, pre-existing homes have more flexible loan options available compared to new home purchases. Depending on the organization, a new home construction company may require a conventional loan, while pre-existing homes often accept private lending options.
As you’re thinking about buying a home, either new of pre-existing, talk with your Realtor to discuss your options. They may have additional expertise regarding the market and can help you navigate the home-buying process.
Brought to you by:
Austin Solomon, Realtor | Coldwell Banker Action, Schofield, WI