Buying New Construction vs A Resale Home in Farmington Hills, MI – If you’re currently in the market to buy a home in Farmington Hills, you’ll undoubtedly be faced with a number of important decisions. A key decision right off the bat is whether to buy a newly-built home or purchase an existing property. Your answer is likely to depend on your lifestyle preferences, the priorities you put on features like high energy efficiency and budget when it comes to repairs and capital improvements.
There’s a lot to consider and it’s important to look at all of the variables before making any final decisions. Let’s look at the advantages and disadvantages of both new construction and resale homes:
ADVANTAGES OF BUYING A NEW CONSTRUCTION HOME IN FARMINGTON HILLS MI
With new construction, not only is everything shiny and new, but you get things just the way you want them. Here are some of the advantages of buying a new home to consider:
- Brand new construction with active warranties
- Customizable floor plans
- Cost of upgraded features and appliances can be folded into the mortgage
- Green appliances for better energy efficiency
- Financing available through the builder, making it easier to qualify for a mortgage
- Fewer maintenance costs associated with repairs or renovations
- Resale homes may provide more opportunities for home improvements.
- New construction homes are built with new materials and appliances, so less maintenance is typically required compared to resale homes.
- New homes often have more safety features and fewer health hazards because they conform to current building codes.
- The home’s major appliances and systems typically include manufacturers’ warranties.
- New construction will typically feature modern architecture and layouts such as larger great rooms, bigger closets, and additional bathrooms, and don’t include the formal dining and/or living rooms that you’ll find in older homes.
- Newly-built homes typically have better insulation due to better windows, more efficient heating and cooling equipment, and greater use of insulation.
- New construction is often made with materials requiring less maintenance, such as aluminum siding, vinyl windows and pressure-treated wood decks that resist rot and insects.
- New homes are easier to customize. Buyers can often choose a number of details from the get-go such as floor plans, paint colors, cabinets, flooring, faucets, light fixtures, etc.
- New construction is more likely to be wired with new technologies in mind, such as security systems, multiple phone lines, high-speed Internet connections, and extra cable outlets.
NEW CONSTRUCTION DISADVANTAGES
There are a few downsides to buying new construction. Knowing the pros and cons can help you decide if a new home is right for you. The downsides include:
- New construction tends to be more expensive than resale properties
- Location may not be ideal (lack of schools and shopping opportunities, possible longer commute)
- Property values are unknown
- Lacking in uniqueness and character – cookie-cutter and possibly design
- Ongoing construction in the neighborhood
- Greater Tax Burden
ADVANTAGES OF BUYING A RESALE HOME IN FARMINGTON HILLS, MI
You may prefer to buy a resale home, knowing that the home has stood the test of time. Resale homes are not without their benefits, including:
- Housing styles have changed with time and you might favor more traditional layouts and features.
- Older houses and neighborhoods may have more character and charm along with mature trees and landscaping.
- Resale homes typically come with more opportunities to negotiate on price compared to new construction.
- Resale homes tend to be less expensive than newly-built homes and are more likely to come complete with items that may cost extra with a new home, such as blinds, landscaping, built-ins, etc.
- Resale homes typically come with more land than newer homes as a result of changes in land-use patterns.
- Resale homes tend to be less expensive than new properties and are more likely to come complete with items that may cost extra with a new home, such as blinds, landscaping, built-ins, etc.
- Resale homes often have more traditional layouts with areas like formal living and dining rooms.
- Property values can be determined before purchase
- Lower tax profile
RESALE HOME DISADVANTAGES
Unfortunately, there are also possible downsides to purchasing a resale home, such an as:
- Smaller inventory of acceptable properties
- May require extensive repairs and/or renovations
- Fewer amenities/older appliances
- Financing can be more difficult
- Competition from competing buyers
- The neighborhood may be in decline
COST CONSIDERATIONS
One of the major concerns that all home buyers have is cost and there can be a big between the price of a newly-built home and that of a resale home. Depending on the terms of your mortgage that can add up to significant savings over the life of your home loan. In addition to the price of the purchase, there are also the costs of ownership to be considered.
New homes are typically more energy-efficient than older houses, having been built with newer building materials, better insulation, and state-of-the-art tech. Older homes tend to be less energy efficient, and that can lead to higher monthly expenses.
REPAIRS & RENOVATIONS
It’s also important to consider the need for any repairs or renovations to the property you are buying. New homes are unlikely to need any significant repairs for at least the first 5 – 7 years, and in most cases, those repairs are covered under warranty. The opportunity to customize your home during the building process – changing the floor plan, adding in closet space, or upgrading to state-of-the-art appliances – also eliminates the need for any major renovations.
Resale homes, on the other hand, may need some repairs or renovations that will ultimately increase the total cost of the purchase. Most experts agree that you should have the property that you’re interested in purchasing inspected beforehand and that you allow for the cost of future repairs and renovations when considering the total cost of the home.
PROPERTY TAXES
Because older homes are typically less expensive, they fall into a different tax base than newer homes. While this shouldn’t be a deciding point when choosing between a new home or a resale property, it is an important consideration. It can be helpful to look at not only the current rate in an area but to compare how the rate has changed over time.
RESALE VALUE
You may plan to live in your next home many years, but at some point, most people sell a given home for any of a myriad of reasons. You may decide to move to a bigger home to accommodate a growing family, downsize when your children are gone, or move for a job, etc. While the new construction home you decide to sell will no longer be new, a five-year-old home will often be more desirable than a 25-year-old home at resale.
THE TAKEAWAY
The decision to buy a new construction home vs a resale home in Farmington Hills is ultimately best made by each home buyer. Know the advantages and disadvantages of the various homes in the area and then weigh your options. Also, make sure to include the different types of financing you can secure depending on the type of home you can buy as well.
PARTNER WITH TOP FARMINGTON HILLS MI REALTOR® – TOM GILLIAM
Whether you’re interested in Farmington Hills MI homes for sale or it’s time to list your current property, Tom Gilliam provides the kind of knowledge, skills, dedication, and personalized service you need and deserve. Tom will take the time to listen to your needs and concerns, keep you informed every step of the way, and will go above and beyond to ensure a smooth and successful transaction.
To find out more about buying or selling Farmington Hills MI real estate, please contact Tom directly at 248-790-5594 or you can get in touch here.
Tom Gilliam, REALTOR®
RE/MAX Classic
29630 Orchard Lake Rd.
Farmington Hills 48334
Call: 248-790-5594
Office: 248-737-6800
Email: [email protected]
License #301741