Should you buy a new or a preowned home? Here’s my professional take.
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Should you buy a new or a preowned home?
To answer this common question, my advice is simply this: There are more preowned houses in the marketplace than there are new construction homes, so you’ll have a much larger variety of homes to look at, and the inventory is much larger as well. Additionally, since there are more of them, you’ll probably get a better price on a preowned home than a new construction home.
Preowned home sellers will also have more equity in the property, meaning they can afford a slightly lower price and you’ll have an easier time negotiating with them. If they’re selling their preowned home, chances are they’ll be looking for another home to buy for themselves, meaning that they might be more motivated to sell quickly.
If you’re set on buying a new home, you can expect to pay, on average, about 20% more than you would for a preowned home.
On the other hand, with new construction homes, you’ll have to deal with a number of fixed costs like the cost of materials and labor. In addition, they have a relatively low profit margin, so a new home will have less flexibility for negotiating than preowned homes.
If you’re set on buying a new home, you can expect to pay, on average, about 20% more than you would for a preowned home. However, since everything in the property is new, you won’t have as many breakdowns or repairs to worry about as you might with a preowned home.
If you have any questions about today’s topic or real estate in general, reach out to us. We’ll be happy to research your question and possibly even create a video to answer it. We hope to hear from you soon!