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Whats the advantage of buying a brand new home vs a used one, the buyer is not an investor/flipper ?


Whats the advantage of buying a brand new home vs a used one, the buyer is not an investor/flipper ?

A brand new home will have some kind of warranty on appliances (if included) , heating & air systems, water heater, possibly wiring, etc...

A used home is as/is.

Builders (new builds) have the capacity to give more incentives. Most have their own financing company, so they can offer crazy low interest rates, especially at the end of the month on inventory homes. Disadvantage: You can't negotiate the price down too much with a new build.

Existing: Can negotiate price down better
disadvantage: you never know what the previous owner is hiding about the house, no matter how good an inspection you had.

brand new home - can be built to your specifications, may take months to build, may have cost overruns, there may be glitches in the systems after you move in.

used house - its ready now, may have glitches caused by age or use, you can't ever really know its history and whether its "haunted" or "a lemon" until you move in, but chances are its problems have been worked out by previous owners. Its exact cost is known. You can have a detailed home inspection done to find 99 percent of the "problems."

People pay a premium for a new home because it's theirs and nobody else has been there. No carpet stains, no nail holes, no wall scars, it's all yours. That can be good, and bad. Usually, that also means no window coverings, no landscaping, no custom features, etc...
Builder warranty is nice but can be replaced with a Home Buyers warranty for similiar coverage. Personally, I like gently used homes at a discount.

Lower home owners insurance, turn key home....

The advantages of new construction:
You鈥檙e starting with a blank slate
If you come in during construction, you can make a lot of personal choices.
Everything should be new, and the home should be ready for modern life, including adequate electrical systems, internet ready, etc.


Disadvantages of new construction:
You won鈥檛 really know how well your home is built for a few years. And the general opinion seems to be that newer homes aren鈥檛 build to last like homes build in the early to mid-20th century were.
If you come in during construction, you may be overwhelmed with the number of choices you have to make.
Guess who will be the one to find all of the kinks and issues that don鈥檛 show up until the home is lived in? That鈥檚 right, YOU Mr. First Owner of this house!
Lack of character (personal opinion)
If you鈥檙e one of the earlier buyers in a new development, you could find your builder selling the last few homes for less than you paid. Apparently that upsets some people鈥?br>
My preference for is for existing homes, and the older, the better, to a point. Existing homes have proven they can stand the test of time and many of the kinks have been addressed by previous owners. No matter whether your house is 6 months or 60 years old, stuff is going to break so buying new doesn鈥檛 eliminate all repair costs. Someone tried to tell you that existing homes are sold as-is. I have no idea where that come from, but you can certainly get repairs on an existing home before the sale, and home warranties (which protect HVACs, appliances, etc. for a year or so) are pretty common. I got one with my 52 year old house.

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