New or Resale?
I am frequently asked this question and my answer is always that it depends on what matters to you. Below I listed my thoughts as to the advantage of each.
New Home Advantages
- Never Lived In Before - This is most frequent reason people tell me for wanting a new home. They want to create their environment the way they want it as opposed to trying to redo everything someone else installed.
- Seller Paid Closing Costs - Depending on the builder and their current situation, I have negotiated both significant price reductions as well as the builder paying all closing costs. However, I have also negotiated deals on resales where the owner paid closing costs.
- Low Maintenance - Especially during the first year, maintenance of a new home is minimal. However, installing all the many things that new homes do not have can offset this. Still, new appliances, new carpets, roof, etc. makes for low first year maintenance.
- More Open Floor Plan - Typically, new homes have more open floor plans than older homes.
- Ease of Purchase - Buying a resale is harder than buying a new home. With resales, especially with bank owned homes, you are likely to be bidding against other and it will take more time and effort.
Resale Advantages
- Larger Lot - Land is very expensive in Las Vegas so moderately priced new homes are usually on smaller lots. For lower priced new homes, some are three stories tall and the distance between them is only a few feet. In contrast, many existing homes were built at a time when Las Vegas land was not so expensive and thus have much larger lots for the same price.
- Low Neighborhood Risk - I am not talking about crime, I am talking about the characteristics of the neighborhood: how homes are maintained, how the common areas are maintained, appreciation rates, etc. If you buy in a subdivision that is a few years old, you will know how the neighborhood is going to "turn out". With a new subdivision you do not know. It takes years for a subdivision to develop its own unique character.
- Pool - If you plan to stay in the home for only two or three years and you want a pool, then I recommend a resale. Typically a home´s resell price rises by only about 30% of the cost of the pool. So, if you purchased a $300,000 home and you added a $30,000 pool and sold your home the next year, I would expect your home to sell for about $310,000 to maybe $315,000. So, pools are not a great investment if your only criteria is appreciation.
- Infrastructure - New subdivisions are typically built in undeveloped areas and thus have limited infrastructure such as high capacity roads, shopping, entertainment, parks, etc. With existing subdivisions, enough time has passed in order for infrastructure to have grown up.
- "Complete Home" - During the first year of owning a new home you typically have to buy and install a lot of things like window treatments, water conditioner, garage door opener, exterior lighting, landscaping, etc. All these items can add up to significant money. With resale homes, most of these items have already been installed and come with the home or can be negotiated to remain with the home.
- Location - New developments tend to be at the outer edges of Las Vegas and thus, if you want to be near a specific location (like work or a friend), there may not be any new developments in the area.
- Maximum Financing Options - Builders almost always require you to use their preferred lender in order to receive their incentives. This typically restricts you to a single mortgage company and if you need special financing, they simply may not offer it. With resales, you can shop for a mortgage that fits your specific requirements. This flexibility can be critical.
- Mature Landscaping - If you like mature trees and plans, new homes and new subdivisions do not have it.
Contact me if you are considering buying or selling Las Vegas real estate. You will be glad you did.
...Eric
Eric Fernwood
RE/MAX CENTRAL
8400 W. Sahara Ave
Las Vegas NV 89117
Email: EricFernwood@gmail.com
Website: www.EricFernwood.com
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Cell: 702-358-8884
Fax: 702-202-2020
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