Do you like a project and turning an existing and dated home into your own? Or is a newly built home where you can make design choices upfront more your preference?
Your answer may likely depend on your finances and lifestyle and these questions usually come up early in the process of searching for a home. When it comes to real estate investments, buyers want to know which option holds the best value.
Which is Better, The Existing House or The New One?
Truth be told, there is no right or wrong answer. There are multiple factors in determining the best home value for an existing home versus new construction.
These factors can differ from property to property. In the end, it’s up to the buyers to determine what is best for them, and some of these deciding factors can be:
- Repairs, maintenance, & customization
- Total purchase price
New Construction Homes
Pros for purchasing a newly constructed home:
- You get to choose the fixtures and features
- It’s new, so you most likely have a warranty on everything including appliances
- No worries about old plumbing and electrical
- Sometimes you may be able to choose the perfect lot
Cons for purchasing a newly constructed home:
- More expensive.
- Potentially longer wait time for construction to be completed.
- Unless you’re building a custom home, some new construction homes have cookie-cutter vibes in certain neighborhoods.
Existing Resale Homes
Pros for purchasing a pre-existing resale home:
- Neighborhood or specific location
- Faster closing time
- They have character
- Freedom to renovate and add more value
Cons for purchasing a pre-existing resale home:
- The layout might not be able to be changed because of load-bearing walls
- It could be less energy efficient due to outdated windows and insulation
- More home maintenance
Having a real estate agent by your side during the home buying process is highly recommended because they can help you see the value, or lack of value, in each property you view. If the property is going to be a rental investment, I also recommend discussing properties of interest with a property manager so they can help with the process and help determine which property might get you the best return on your investment.
If you are looking for an investment property in the High Country of North Carolina, give an 828 Real Estate agent a call!