I have spent a great number of years purchasing homes for resell, or helping my investor clients do the same.
However, I have also spent quite a bit of time with people who are looking for a band new home.
There is something exciting about being the first person to live in the home. You enjoy some nicities, such as:
- Warranties on every other new thing in the home. Sometimes the builder will even extend the existing warranties beyond the normal time frame.
- You can attaing that pioneer feeling of being the first to a community or city. I'm currently in the process of living in a town that didn't even exist a few short years ago. The neighbors and businesses that surround us are in the same boat- we're getting to know each other and have the common background of embarking on this space together.
- You can plant build fresh landscaping and watch these houses turn into homes. Within a few years the trees will be taller and the homogeneity of the place will lessen. Younger neighborhoods simply appeal to a certain percentage of the population.
Are there any disadvantages?
To a certain extent, these are the converse of the above. For instance:
- You can buy a home warranty for an existing home.
- Some people prefer seeing an "end result" neighborhood were there are fewer unknowns to the views outside your window. Also, well established business go a long way to creating an extra sense of community.
- Mature trees and shrubs often contributes positively to that "it just feels like home" quality. Some older neighborhoods have an outstanding curb appeal.
When I work with investors, they often follow a tight plan that can be very similar to the goals of persons purchasing a move-in, owner occupied home. Some prefer condos, others prefer single family homes. Some like to purchase homes on large lots and others want urban dwellings in areas undergoing a gentrification. I also have investor clients who want homes that are as new as possible- often these are the easiest to rent out.
Real estate agents: which do your clients seem to prefer these days? New or existing homes?
Home buyers: what is your preference?
I'd love to find out.