Brand new house vs pre-owned home

cli-terminator

Retired ManWhore
BGOL Investor
Let's say you were just approved for a mortgage for your first home and set yourself up with a budget meant to stay within a certain monthly bill range. During your home hunts, you come across a few pre-owned homes that looked nice and fit within your predefined budget. Then you see a posting for a brand new home on a realtor website that just grabs your attention in every way and would be perfect but would put you about $15K over the budget you set. Would you forego your budget and go after the brand new house or stick to your guns and settle for the pre-owned house that will cost you less?
 
Or find a ore owned in your budget that would be perfect...home prices are still good....my neighbor just sold his house for 239k and 4 years ago it was listed at 450k....

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I prefer to not buy a house with someone else's dingy carpets and dirty grouts. I always buy a new house. That's just me.

In your case, $15k stretch on your budget should not deter you from the new house. Just eat out less. You will also have less maintenance cost on the new house and lower utility bills , because of the energy efficient nature of it.
 
I prefer to not buy a house with someone else's dingy carpets and dirty grouts. I always buy a new house. That's just me.

In your case, $15k stretch on your budget should not deter you from the new house. Just eat out less. You will also have less maintenance cost on the new house and lower utility bills , because of the energy efficient nature of it.

So you're assuming that most don't gut the flooring, paint, and remodel? It's fully cheaper and in your best interest to buy pre owned. The money you save could have you say fuck that carpet and lay your own hardwood yourself. Now you've significantly increased the value of your home. Listen close young lads. This is where HELOC comes into play from ol buddy thread.
 
New is always better, IF you are new to the game and can't weild tools or have the paper to do ongoing repairs.

Best advice, even if you DON'T HAVE kids spend the added cash for area (school district, near facilities, central business district).

Old construcrion that has been cherried out, better wood, custom hand made wood accents etc will always be worth more than the thrown up "new" developer home.

If used make sure that you have everything mechanically checked out properly. And don't use the inspector recommended by the realtor or the title company.

Good luck


Builders put more value in homes depending on the decade, sort of like cars
 
Well here's the new house that would need to be built that I'm looking at for potentially going after.
http://www.realtor.com/realestatean...ark-Ave_Raleigh_NC_27616_P415195555372?row=8#

Wifey and I plan on taking a trip to the community soon to look at their demo house to get a better visual of their designs. Other homes I'm looking at are in the $180K - $195K range. Those homes were built in 2005 and up. I'm trying to stay away from anything that's older than 05.
 
Depending on where you are, older homes gave greater bones than newer builds.
 
New is always better, IF you are new to the game and can't weild tools or have the paper to do ongoing repairs.

Best advice, even if you DON'T HAVE kids spend the added cash for area (school district, near facilities, central business district).

Old construcrion that has been cherried out, better wood, custom hand made wood accents etc will always be worth more than the thrown up "new" developer home.

If used make sure that you have everything mechanically checked out properly. And don't use the inspector recommended by the realtor or the title company.

Good luck


Builders put more value in homes depending on the decade, sort of like cars
Yeah I'm definitely not a handyman for around the house. If it's IT related work then I'm good but I have no experience in around the house work on that level. Big thing for me is convenience in my commute to work. Right now my commute is about 25 minutes on I-540 and would prefer to keep my travel time down even though I know I won't typically hit rush hour traffic since I have off-peak work hours.

Depending on where you are, older homes gave greater bones than newer builds.

I'm in Raleigh,NC
 
Stay in your budget range Bro... Nothing sucks like getting behind on a mortgage.
 
If I were looking to get a new place, I'd prefer new construction also. Just would rather be the first person living in a place... although a lot of older homes are built pretty well. One thing though... construction workers sometimes do some vile shit at sites while they're working. I know of no less than three people who popped by their still under construction new homes, and found that workers took a shit in various places (bathtubs, etc). :smh:


I prefer to not buy a house with someone else's dingy carpets and dirty grouts. I always buy a new house. That's just me.

In your case, $15k stretch on your budget should not deter you from the new house. Just eat out less. You will also have less maintenance cost on the new house and lower utility bills , because of the energy efficient nature of it.
 
So you're assuming that most don't gut the flooring, paint, and remodel? It's fully cheaper and in your best interest to buy pre owned. The money you save could have you say fuck that carpet and lay your own hardwood yourself. Now you've significantly increased the value of your home. Listen close young lads. This is where HELOC comes into play from ol buddy thread.

Yes, that is usually the case. Most people do not gut and remodel pre-owned homes and they are not usually cheaper than new homes.
 
That's less than $100 a month difference OP. Get insurance quotes and tax estimates for both and see how it shakes out. If it's within your ability to stretch, I'd go for the new home.
 
an alternative to new construction could be a 203K loan and since that home you showed us is well within an FHA mortgage consider this loan with this loan it will allow on a pre-existing home pretty much anything you wanted new with the exception of a pool or tennis courts... new floors appliance upgrades bath and kitchen upgrades only drawback a slightly higher intrest rate...here is a link to learn more about it
http://www.203kmortgagelender.com/?...Gds9-lQqZ2F7HAsWbDxdZM7P325NfQlP68aAqOV8P8HAQ
Congrats on your purchase man 1 thing about it they sure can't make no more land
 
So you're assuming that most don't gut the flooring, paint, and remodel? It's fully cheaper and in your best interest to buy pre owned. The money you save could have you say fuck that carpet and lay your own hardwood yourself. Now you've significantly increased the value of your home. Listen close young lads. This is where HELOC comes into play from ol buddy thread.
I disagree. ..new doesn't mean better because houses aren't built as solid and materials aren't as good..

Hasn't had time to settle .

But I am also not talking about buying a 40 year old house either...

There are many homes built within the last 10 years people couldn't keep at those rates

And the buyer can always ask new carpet and appliances be part of the contract or money be subtracted from the price.

Not to mention improvements that may have been done like decks or finishing the basement


New is always better, IF you are new to the game and can't weild tools or have the paper to do ongoing repairs.

Best advice, even if you DON'T HAVE kids spend the added cash for area (school district, near facilities, central business district).

Old construcrion that has been cherried out, better wood, custom hand made wood accents etc will always be worth more than the thrown up "new" developer home.

If used make sure that you have everything mechanically checked out properly. And don't use the inspector recommended by the realtor or the title company.

Good luck


Builders put more value in homes depending on the decade, sort of like cars


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One aspect I'm curious about is with the new home would I have to get all of my appliances or would some of them be covered as opposed to there already being appliances in the pre-owned home. I haven't shopped for appliances so I don't know the cost range off the top of my head either.
 
One aspect I'm curious about is with the new home would I have to get all of my appliances or would some of them be covered as opposed to there already being appliances in the pre-owned home. I haven't shopped for appliances so I don't know the cost range off the top of my head either.
You will be getting them....

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Props on that. I looked at the builder and they got really shitty reviews on the consumer affairs website. They're owned by Pulte and damn near everyone on multiple boards are saying they're one of the worst builders :smh:
 
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Props on that. I looked at the builder and they got really shitty reviews on the consumer affairs website. They're owned by Pulte and damn near everyone on multiple boards are saying they're one of the worst builders :smh:

And that is exactly why a new house isn't always better.

Builders hire subcontractors who get paid by the job not by the hour so they want to complete as soon as possible which causes short cuts to be taken

Unless you know architecture and can be there overlooking the entire project you won't know until something happens...

like i said earlier homes are built today like they used to be..


and many people had homes built within the last 10 years that cost them 250-350 k and couldn't maintain the payments and are short selling or just gave walked away from them.. those home going for 125 today and many have had improvements made to them.....

whatever you decide you have to shop around....for builders or for houses that are pre-owned
 
One aspect I'm curious about is with the new home would I have to get all of my appliances or would some of them be covered as opposed to there already being appliances in the pre-owned home. I haven't shopped for appliances so I don't know the cost range off the top of my head either.
you will get at least a stove and dishwasher. They don't have to give you a fridge but most builders do. You will not get a washer and dryer unless it's part of a promotion. You should also bargain to get a garage door opener because they can be expensive and builders just don't include them.



I have been lucky with my new homes. My current home is 13 years old with no issues except for a new Ac that was installed by the warranty company.
 
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New home is always the better choice especially if you coming from an apartment. Few things to ensure while searching for the new home is getting an all inclusive home meaning it comes with all new appliances.. Stove, refrigerators, washer and dryer etc. if you able to get an all inclusive home for a few thousands more that's the best deal. No Pre owned home is coming with new appliances if any at all. Also as someone else said check the taxes and insurance as well but those will be almost the same in the same area.
 
Just depends

Don't go into a pre owned home that needs a bunch of work

Get YOUR OWN inspection done

But all things considered new homes are better if you can get one in a neighborhood that didn't stack houses on top of each other if having a yard and privacy from your neighbors is important to you

New home is always the better choice especially if you coming from an apartment. Few things to ensure while searching for the new home is getting an all inclusive home meaning it comes with all new appliances.. Stove, refrigerators, washer and dryer etc. if you able to get an all inclusive home for a few thousands more that's the best deal. No Pre owned home is coming with new appliances if any at all. Also as someone else said check the taxes and insurance as well but those will be almost the same in the same area.

Just depends

Mine did

The house was completely remodeled
 
IMO

Get an inspector and appraiser, (the best, spend your money on this!!!) and buy a fucking foreclosure. If the bank will give you a loan of 200k then I'm sure you could get a loan for 100k and a 35k loan to remodel the house. Unless you're having a house built to your exact customizations, they're all someone else's houses.
Do your research. You don't want anything American built during the 2nd Bush era. Not being racist, but when it comes to wood and steel, you want an American to build that. That's what we're good at. You don't want the chance that a day laborer built your house, because they don't care as much due to relaxed regulations, i.e. shitting in your tub.
If you're a man and you can't do basic to intermediate work on your house, by your self then you should kill your self, or go the Caitlyn Jenner route. Make sure you don't upgrade your house to a point where it's got more in it than what it is worth. Hire skilled insured electricians, plumbers and HVAC workers.
Above poster gave you great information about School districts. Nothing wrong with buying a 100k foreclosure in Beverly Hills. Homes with crawl spaces are excellent for maintenance reasons.

15,000 is not enough to fuss about though

Inspector cost 300
Appraiser cost 300
House cost 100k
Renovation cost 35k
House Value 350k+
 
I disagree. ..new doesn't mean better because houses aren't built as solid and materials aren't as good..

Hasn't had time to settle .

But I am also not talking about buying a 40 year old house either...

There are many homes built within the last 10 years people couldn't keep at those rates

And the buyer can always ask new carpet and appliances be part of the contract or money be subtracted from the price.

Not to mention improvements that may have been done like decks or finishing the basement





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Read the post fam
 
Most of these new houses built in this new millennium are crap!!! Built buy nonunion contractors for the lowest bid, shortcuts on materials, not energy efficient. You REALLY need to do your home work on how homes are constructed, what codes are in the area, and WHO built the home. Get a good INDEPENDENT inspection and appraisal. At the end of the day, it may be worth it buy a new home, and be involved with the decision making, as far as energy efficiency (insulation, ventilation, hvac,foundation, etc).
For instance, before the foundation is poured, adding 2" foam board between the ground and the cement can add r-value to that floor by creating a thermal break.

Or that most homes are only insulated on the corners with 1/2" foam board, instead of all of the walls (in most areas, its code to just do the corners). Fiberglass insulation (rolled or batts) is ideal. Stay away from cellulose blow in insulation for walls, it settles after a few years. Spray foam is the best way, but way more expensive.

You could waste $100's if not $1000's a year in energy bills through poor insulation, cheap windows and doors, or poorly designed HVAC systems.

I say all this to say; just do your homework, don't be afraid to ask questions, and don't make a hasty decision based on overall appearances.
 
I purchased a crib last year I was looking at spots that were well within my budget and would have been a peice of cake to pay the mortgage because the payments would be slightly above what I was paying for rent.....I spoke to my Pops and he told me I should expand my search range and buy something better that and my wife could grow into a spot that I loved even if the monthly payments where at the top of my afordablity range! Best advice I could have ever got because at the end of the day who wants to be stuck paying a mortgage on a house that they don't really like..... fuck that that like marrying a chick that's ok when you could have a dime... my 2 cents!

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Most of these new houses built in this new millennium are crap!!! Built buy nonunion contractors for the lowest bid, shortcuts on materials, not energy efficient. You REALLY need to do your home work on how homes are constructed, what codes are in the area, and WHO built the home. Get a good INDEPENDENT inspection and appraisal. At the end of the day, it may be worth it buy a new home, and be involved with the decision making, as far as energy efficiency (insulation, ventilation, hvac,foundation, etc).
For instance, before the foundation is poured, adding 2" foam board between the ground and the cement can add r-value to that floor by creating a thermal break.

Or that most homes are only insulated on the corners with 1/2" foam board, instead of all of the walls (in most areas, its code to just do the corners). Fiberglass insulation (rolled or batts) is ideal. Stay away from cellulose blow in insulation for walls, it settles after a few years. Spray foam is the best way, but way more expensive.

You could waste $100's if not $1000's a year in energy bills through poor insulation, cheap windows and doors, or poorly designed HVAC systems.

I say all this to say; just do your homework, don't be afraid to ask questions, and don't make a hasty decision based on overall appearances.

And I would pay for a professional inspection even on a new home.... builders are slick.
 
interesting this is the 2nd time this week someone asked me that... I'll say the same thing I told them... when it comes to a home LOCATION matters most! If you can get the new home in prime real estate go for it. In most cases though the prime real estate is already established so that's not gonna happen. Besides most newer homes are thrown up with plywood and nail guns for the most part :hmm:

At the end of the day do what makes you happy... but LOCATION should be the most important factor next to budget.
 
I purchased a crib last year I was looking at spots that were well within my budget and would have been a peice of cake to pay the mortgage because the payments would be slightly above what I was paying for rent.....I spoke to my Pops and he told me I should expand my search range and buy something better that and my wife could grow into a spot that I loved even if the monthly payments where at the top of my afordablity range! Best advice I could have ever got because at the end of the day who wants to be stuck paying a mortgage on a house that they don't really like..... fuck that that like marrying a chick that's ok when you could have a dime... my 2 cents!

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Sound advice....
 
When we bought our house we went $10k over our budget and it added less than $40 bucks to our mortgage. Don't know what your interest rate is, but $15k isn't enough to make it a struggle on your payments.
 
Good to know. I was concerned about what the impact of that extra money for any house I choose

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Yes, that is usually the case. Most people do not gut and remodel pre-owned homes and they are not usually cheaper than new homes.

You live in the A right ? so it's different for you...in South Florida different ball game....
 
Houses built before a certain time have more character, are better constructed and look nice imo. However they can have a host of problems that are expensive to fix. It depends on your area, mine is known for older homes, and it depends on your budget.

My house has a slate roof. Trying to get a contractor to work on it without acting like its made of gold, is quite a challenge. But there are slate roofs that have been around for over 500 years. This aint that shingle replace the whole thing every 10-20 years thing. When I fix the few shingles it will likely ride me out for the rest of my life as it did the previous owners.

New house is less problems, Old houses can be full of unpleasant surprises. If money is tight opt for a new house. Old houses need to be cared for and restored over time. Everybody doesn't want to spend their time like that. Im someone who does.
 
Let's say you were just approved for a mortgage for your first home and set yourself up with a budget meant to stay within a certain monthly bill range. During your home hunts, you come across a few pre-owned homes that looked nice and fit within your predefined budget. Then you see a posting for a brand new home on a realtor website that just grabs your attention in every way and would be perfect but would put you about $15K over the budget you set. Would you forego your budget and go after the brand new house or stick to your guns and settle for the pre-owned house that will cost you less?

I bought a brand new home this year and have no regrets. As foe you, weigh your options and go with the home that has more upside long term. Back to me, based the type of home I bought along with the bells and whistles that came with it, I think I got something that I don't think I would get with a resale home with a similar price range (w/exceptions).
 
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