2022 Boise Idaho Real Estate Blog

New Construction or Existing Home: That is the question

Main Idaho Real Estate Insights

Searching for a home is a situation where excitement can escalate due to all the possibilities and make ones head explode. Think of all the vairables: location, # of bedrooms, # of bathrooms, square feet, size of lot or land, garage space, outdoor living area, master bedrroom, one story or two, amenities like a pool or hot tub, great room or many rooms and the list goes on. So you are searching online and touring homes on the weekend when you begin to realize that prices vary quite a bit between homes and locations.

Search for a Home

Boise Home SearchMany people want a brand new home and all the benefits that come with it. The thought of new feels good. It also comes in a new community which also feels good. New homes mean that you are not going to have to worry about moving in and replacing, remodeing or removing. It is a very easy move to make.

What you need to remember is that all these benefits cost money and add up compared to an existing home. While all homes are based on market value, new homes are generally more expensive. The reasoning  is quite simple. Pretend you are the buyer (by the way we help home buyers!) and you are looking at two homes. They are exactly the same floorplan and have the same finishes. One is brand new, just got finished last week. The other is only four years old. It has been lived in by a family with kids but they have taken great care of it, no obvious signs of damage or abuse and the carpet looks fine. Which home do you buy?

Let's say they are the exact same price, which one do you buy? Logically, you would choose new just because it would be a better value as the roofing, appliances and carpet are going to have 4 more years of life in them. Also, the other home is lived in and is surely going to have such signs. Lastly, the new home comes with a warranty, just in case.

Now let's look at it from the sellers side. If the builder was in a bind he could lower the price and amplify the value of his home so buyers would come running. The reality is that the owner of the used home is going to have to lower the price of his home to entice a buyer. Every home buyer evaluates the value of one home to the next. How is there money best spent? Do they spend the extra for new or save money and buy an existing home? Or do you buy an existing home and get more home for the same money?

We tend to talk to a lot of folks who are looking for a new house. I think most just want to buy a place that will require less maintenance in the long run. Other people are looking for the 'right' house and after a comprehensive search and enough time goes by they decide to build what they want on the lot of their choosing. Sometime we talk to people who want new but can't get what they want but can find it slighly used.

Build Idaho is a team of professionals that are glad to help you in your search. We can help in your search and show you homes. We have numerous references on our professioanlism and customer service. Give us a call today.Also, if you need to sell a home before you move, we offer the strongest marketing program in the market place which will help you not only get your sold quickly but also get the most for it.

Posted by tlangford at 2/4/2016 12:34:00 PM

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