An Established Neighborhood or a New Home?
Established neighborhoods tend to have their own personalities with mature trees and
often larger yards. Older building styles tended to lean toward higher, plaster ceilings,
hardwood floors and decorative woodwork. Depending on the age of the home, it may require
a little more maintenance. Established neighborhoods are also usually closer to the city.
Urban living puts you at the center of the action. It offers a wide variety of amenities
like shops, theatres and restaurants. It may also be closer to your workplace. Of course,
the drawback of an urban location could be a smaller, older or more expensive home. Look
for schools playgrounds, parks, etc. Make sure there are no undesirable areas surrounding
your neighborhood such as waste disposal sites, etc.
The suburbs usually often the advantage of newer homes with more square footage for the
same price as an urban location, but may not have the other amenities as close as you'd like.
New neighborhoods tend to have a noticeable lack of foliage and can look barren for years as
the landscaping matures. If you purchase a home before it is built, you will be able to take
advantage of upgrades during construction and when you move in you can decorate to your taste.
A new home won't have the charm of an old one, but it will have warranties covering most major
components. Be sure you understand what the warranty covers. New homes have some real
disadvantages that most people don't think of until it's too late.
New vs. Used
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When buying a new home, keep in mind that the representative you are dealing
with at the new home site may not be a licensed real estate agent. The new
home representative's best interest may lie with the builder and not you. In
many cases, the builder will not allow your RE/MAX agent to protect your
interests or help you prepare the agreement.
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The builder's agreements can be very one-sided in favor of the builder. Did you
know that many agreements allow the builder to extend closing by 2-3 months
twice, and then cancel the agreement if the house still isn't built?
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Your team of experts cannot fully protect you when buying a new home. For example,
your lawyer will not be able to force the builder to sell you a house that's not
there yet. Whereas, when buying a used home, your RE/MAX agent will be able to
negotiate the price and your mortgage expert will be able to arrange the best
possible mortgage for you. If you do decide to buy a new home, try not to get
confused with terms like "mortgage-paydowns" that are built into the price of
the home.
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Remember, your home inspector will not be able to inspect a house that's not built
yet and new homes are not always trouble free.
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As a new home buyer you may have to spend money on additional expenses like driveways,
decks, landscaping, decorating, recreation rooms, air conditioning and fencing. If you
want all of the above without having to go through all the hassles, a used home might
be the solution for you.
