Jan

Should You Buy a New Home or Existing Home?

By emily

The purchase of a new home is always considered a rewarding experience by many Minnesota first time homebuyers not only because it allows couples or families to enjoy an entirely new space, but due to the convenience it provides particularly with the brand new amenities minus the hassles of maintenance during the first year.

However, a brand new home can be significantly more expensive than an existing home and you don’t always know what to expect if you’re one of the few homes in a growing neighborhood.

Understanding the benefits and drawbacks of each scenario can help you make the best decision about your new home purchase; consider the following important points as you get started on the home buying process:

1. Are you willing to spend extra for a new home’s purchase? Brand new homes in Minnesota are priced at a premium because of the ‘newness’ factor; you’ll be the first person to use the bathroom and kitchen appliances, will be walking into freshly carpeted rooms, and making the most of the freshly painted walls.

2. How important is resale value to you? Existing Minnesota homes for sale can have slower appreciation than newly-constructed ones, as explicated by Ilyce Glink (writer of the book ‘100 Questions Every First-Time Home Buyer Should Ask’). Would you consider selling your property subsequently? If that is the case, it may be good to remember that once you move in to your new home, its market value becomes higher thus more profitable and easier to sell.

3. Are you willing to adapt to the neighborhood? The construction of new homes rapidly increases at a certain time, thus, being a new homeowner in an area may require knowing more people in the neighborhood before having a full knowledge about the whole area. You may need to consider safety and security if you have small children or elderly residents living in your home, and find out what options you have to make sure your home is as safe and secure as possible.

4. Would you be willing to spend your resources in a home renovation? Existing homes can appreciate tremendously in value if you have the time and resources to invest in renovations and maintenance. You may opt for a ‘fixer upper’ if your plan is to have a long-term investment to give you a high profit at a short time.

5. Do you want an investment or a primary residence? Most beginning homebuyers want investment properties that they can soon turn into a profitable business. Mature home buyers are more likely to be in the market for a primary residence since they want to settle down and establish themselves in the neighborhood. Consider what your short-term and long-term goals are so you can make the best decision for your first home purchase.

Once you have decided and thought about the amount you are willing to spend for your new home, its about time to choose between an existing or a new home. Choose the best investment with your time and money by simply considering all the abovementioned questions in your decision-making.

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