New construction vs. existing

One of the primary decisions you will need to make in choosing your home is whether you want to look at new construction or existing homes.  As the owner of a newly constructed house, you will be its first owner and will be the first to make your touch on the home. 

Some buyers prefer the older and more established neighborhoods that generally come with existing homes.  Also, some neighborhoods, such as many in Bellevue and Seattle, are already well developed making new home searches difficult.

The following are the advantages of new construction.

ü  Most builders provide warranties for the appliances and construction.  However you should always read the fine print to verify what is covered.

ü  Dangerous materials, such as lead and asbestos, will not be an issue.

ü  New homes use modern building materials and procedures, meaning all current codes should have been followed and your home will likely be better insulated.

ü  If the home has not yet been built, you may be able to make changes to the floor plan and paint colors in the house.  This depends on the flexibility of the builder.

ü  All appliances will be brand new

ü  High tech wiring and security wiring are easier to install in new homes than existing homes.  Some new homes will come with these built in.

ü  With large garages and closets, new homes generally have more storage space.

ü  If built in a new subdivision, the subdivision will often have recreational facilities such as a playground and tennis courts.

ü  If built by a good builder, new homes usually do not require as much maintenance as existing homes.

The following are the disadvantages of new construction.

ü  Association fees are common in new developments and must be factored into your costs.

ü  Most affordable new houses are located in neighborhoods further away from central business areas, meaning your commute will be longer.

ü  In further out areas, road infrastructure is not yet fully developed, increasing commute time.

ü  You will often need to provide finishing touches such as draperies and landscaping.  These can be costly.

ü  Due to the need by the municipality to provide water and electric to new subdivisions, taxes tend to be higher in these neighborhoods.  Also, more rural communities often lack businesses that reduce property taxes in more developed areas.

ü  In some cases, new homes appreciate at a slower rate than existing homes; however this is not always true.

ü  New homes are often more expensive than existing homes.

ü  Construction noise as the rest of the subdivision is constructed

Existing homes generally are found in more established neighborhoods and cost less than nearby newer homes.  Many people find them more charming, with established landscaping and finishing touches over the years by different owners that provide each house with its own character.  Some of these homes may be newly renovated, allowing you to obtain some of the more desirable floor plan features usually only available in newer homes.  It is also often said that older homes use better workmanship and are of higher quality than newer homes, but the truth is this varies with the original builder of the older home and the builder of the newer home and thus this does not always apply.

Of course, older homes will require more repairs and maintenance on average.  In addition, when you renovate or change one part of an older house, you may be forced by your municipality to make changes to other parts because codes have changed since your house was built.  Older homes also often make use of unique dimensions and measures, meaning a task such as replacing a door could become a major project because no standard doors will fit.