Should I consider buying a
new home instead of buying an existing home? New homes are wonderful for
many people. They come with new appliances, they are painted the colors
of your choice, there aren't any ghosts, many even have a warranty--and
unlike new cars, they don't lose 30% of their value the first year. Up
north when we sold a new home it came with a hand seeded lawn and 12
shrubs. So the landscaping looked pretty good after about three or four years.
Obviously people like new, clean and unused things, and with
a new house you have a pretty good chance at getting exactly that, with
everything in brand new condition. New home builders have wonderful brochures
showing all the extras ($$$) that are available, and various builders give you
options to upgrade this or that (all at a cost), to personalize your new home.
But let’s start at the beginning. Realtors always say, “Under it all is the land”. And then they
say the three most important things about a property are, “location, location
and location.” So let’s consider
location for a moment. People have been
building homes for hundreds of years, and typically builders pick the best land
available (in their price range) on which to build.
So it stands to reason that over the last several hundred
years, most of the really good parcels have already been built on, and unless
you are considering a home investment costing in the millions, the properties with the best
locations will not be in your future. The “tract builders” who have all the
open houses and the colorful brochures, are mostly building on less than ideal
property--reclaimed swampland, areas along a highway, or in some cases vast
ranch lands that have recently been rezoned from Agriculture to Residential with 5 or 6 homes per acre.
Gone are the days of finding a building parcel on a hill
with a view of a lush valley of orange groves in one direction and Sarasota or
Lemon Bay in the other. So if location is important to you, your choices will probably not include long views, but rather
proximity to shopping or highway exits or perhaps a golf course. OK, so the land is only average, but you can
still design the home of your dreams, right?
Well not so fast, Bucky. Most of the builders will allow you to make a
few modifications to a plan they are happy with, and of course you can ask for upgrades,
but don’t try to move a wall or change the location of the front door.
The plans that builders “like” are ones that
have been approved by their accountants. Today's homes are ones that can be built inexpensively, they are generally a
couple of boxes on a slab, and are dressed out with a so-called California roof
line in the front, and fancy trim around the entry door, so visitors will be impressed. Builders are good at putting
lipstick on a pig. Today everything is profit oriented, remember, most of the builders out
there are not your more traditional carpenters, but rather publicly traded corporations. These companies are in business to show a profit to their
stockholders, and the more the better.
If you think that building products are all high
quality, well think about all the builders who used Chinese drywall in
many new homes throughout the area, with disastrous results. And
there other cheaply made products in new homes. Flimsy light fixtures,
sub-par water pipe, low quality carpeting, "builder quality" cabinets
and countertops can all be
substandard, while looking perfect.
Older (existing) homes can be a money pit, but—on the other hand--may
provide a better structure with larger rooms on a nicer parcel of land in an
established neighborhood, for far less money. Making an offer on an older home
can leave over some cash to make the upgrades that are important to you and
your family. If what you really wanted is all new appliances, a new AC and new
tile floors, you may only need to budget $10-$15,,000 more to put all that into
an older home. But whichever you choose, new or old, be sure to get a home
inspection before you close your transaction. I once had a new home
inspected for a client of mine, and the inspector found the builder forgot to
install one of the support beams. So new or not, have an inspection.
Dane Hahn is a real estate professional with Sarasota Realty
Associates in Venice, FL. You can reach him at 941-681-0312 or dane.hahn@gmail.com. See him on the net
at www.danesellsflorida.com
-- Dane Hahn
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