If you are in the market for a home, you have a big decision to make. Do you buy New Construction or an Existing Property? The first thing to remember is that there is no right or wrong answer; it just depends on what works for you. To help you work through the process, here are some things to think about:
Typically, in Collierville, a new home is going to cost more for the same square footage of an existing property. The median price of an existing home listed for sale in Collierville today is $429,000 vs. $514,500 for a new home. While the initial cost for a new home will be more, an existing home is more likely to have extras, such as a fence, pool, window treatments, etc. already installed.
A new home is going to offer a more up-to-date floor plan than an existing property will. Open floor plans with a family room opening up to a modern kitchen, one or two bedrooms downstairs, larger closets, and flex spaces are just a few of the features a new home typically has to offer.
While an existing home might not have the most up-to-date floor plan, if you have a lower initial cost there might be room to add some sweat equity by doing some updating yourself.
While the initial cost is going to be higher on the new home, the cost to maintain the home is going to be much lower for the first 8-10 years. After the 10 year mark, things like hot water heaters, appliances, and HVAC systems start needing repairs or replacement.
If you start leaning towards an existing property, make sure to look at the ages of all the components of the home, including the roof. These costs can add up very quickly and need to be considered. If you can find an existing home that has been updated, you will be able to limit the risk of repairs right away.
A new home is built to the current codes, which is going to have more energy efficient features, such as Low-E windows, 13 Seer HVAC system, more insulation, and an overall better sealed home. The average utility bill will be lower on a new home than an existing one. It is a good idea to confirm the utility cost when considering an existing property.
If you are looking for that “old world” charm with tree lined streets and an established neighborhood, it will take years in a new development.
With the current low inventory of homes for sale, both new and existing, it can be a challenge to find a home on the market that is exactly what you have envisioned. If you have the time, usually 6-8 months to wait, building a home might be a good option. It would allow you to personalize the home the way you want, but will also require patience.
These are just a few things to consider when comparing new and existing properties in your home search. My recommendation would be to find a REALTOR you trust and discuss your options.
by: Allen Green, Realtor – John Green & Company Realtors