Are you thinking about buying a new home? Trying to decide between building or resale? There are many advantages to building a new home. However there are a few disadvantages as well that could lead to unexpected expenses if you aren't prepared. Here are some of the pros and cons of building a new home.
I would have to say the warranty is the most advantageous factor of a new home. Most have a 10 year structural warranty and they will come touch up paint and patch any settlement cracks during the first year. All the appliances are under the manufacturer's warranty. There is definitely peace of mind for the first few years of a new home purchase.
I would have to say the warranty is the most advantageous factor of a new home. Most have a 10 year structural warranty and they will come touch up paint and patch any settlement cracks during the first year. All the appliances are under the manufacturer's warranty. There is definitely peace of mind for the first few years of a new home purchase.
We all love that “new home” smell, don’t we? There is no doubt most people would prefer a new home. The fresh paint, brand new carpet, everything is brand spanking new and it all ours! Yes, building a new home can be very satisfying – picking out your own cabinets and counters, carpet and tile. It can be a bit overwhelming to walk into the design center but for some of us we’re like kids in a candy store! That is until we realize we have champagne taste on a beer budget (I’ve always loved that saying and it describes me to a “T”). I like to think of myself as careful with my money but I sure do like nice things. That’s why I ended up with 10’s of Thousands of dollars in upgrades…and I was being careful! I didn’t want the cheap limited choices of tile, I wanted the beautiful high end. Same with the plain cabinets and boring counter tops. Oh…so many choices and very few of them are included in the base price.
There are actually quite a few things that are not included in the base price that may be an unpleasant surprise to an unsuspecting buyer:
- Upgrades – as mentioned above very few people want the base model. Not only for your own living pleasure but you’ve got to think about resale value when you go to sell, some things are harder to upgrade later – cabinets, tile floors, windows, etc… We all tell ourselves a story like this: “It’s better to roll in the cost upfront”. That may or may not be true and many people end up overextending themselves on their house payment for the next 30 years.
- Window coverings – many people have this rude awakening the first night they intend to spend in their new home to realize there are no blinds or curtains! This is not a happy feeling. Window coverings could run from $30-$100 a window depending on size and style. Most of us want both blinds (and not the cheap ones!) and curtains for decoration. That could be $2,000-3,000 you weren’t planning on spending. One plus to a resale home is the previous owners forked out the money to cover those windows.
- Established landscaping – many tract builders have a minimum landscaping package required by the deed restrictions – typically 1 or 2 seedling trees in front and a few bushes. It will take 10+ years for that tree to be a Tree! And of course if you like a nice looking yard you’ll be adding or extending the flower beds, adding more plants, pavestones, etc… This could run a couple more thousand dollars.
- Deck or Patio – most basic floor plans have very little outdoor living space. You could do an upgrade for a nice covered patio for $10,000 or promise yourself you’ll do it later “when you have the money” and end up never spending any time in your back yard because there’s no shade. I know as a Realtor it’s so sad to show a home that has absolutely nothing in the back yard except weeds because the homeowners could never afford those upgrades they dreamed of.
- Storage building – there’s never enough storage! If you intend to actually park in your garage where are you going to keep the lawn equipment? You could buy a cheap storage shed at the Depot for $500 and spend 2 or 3 weekends building it, by the way they don’t include a floor so your cheap shed is always more expensive! Or you could fork out another $3,000 to pay someone to build it for you.
- Cabinet Hardware – did you know the builder doesn’t include handles on their cabinets? You may not realize what a pain it is until you start cooking in your new kitchen and have to struggle to open drawers and cabinets. And those suckers aren’t cheap! On the low end you’re looking at about $1 each – for each and every door and drawer. The decent ones run about $2.50 each! Don’t forget about the bathrooms and utility room cabinets.
- Fireplace logs, grate and screens – that’s another $1,000
- Light fixtures – another upgrade because no one wants the “builder grade”
- Ceiling fans – you’ve got to have ceiling fans in our Texas heat, that’s another $100 each or more.
- Gutters – $1,000+ and they really are needed to protect your foundation…
I’m not suggesting you shouldn't buy new. New homes are great! The options are awesome and we would run out of houses (which are in short supply now) if not for builders continuing to increase our home supply. Just make sure you do have an agent representing your best interests and negotiating on your behalf and be prepared for the unexpected expenses associated with building a new home.
Please visit my website www.CowtownRealEstateGroup.com to search for your next home or for a market analysis if you are thinking about selling.
Happy Home Hunting! And if there is anything I can do to assist you with your real estate needs please do not hesitate to call.
Deanna Parnell
Re/Max Heritage
469-258-4770
[email protected]
www.CowtownRealEstateGroup.com
Please visit my website www.CowtownRealEstateGroup.com to search for your next home or for a market analysis if you are thinking about selling.
Happy Home Hunting! And if there is anything I can do to assist you with your real estate needs please do not hesitate to call.
Deanna Parnell
Re/Max Heritage
469-258-4770
[email protected]
www.CowtownRealEstateGroup.com