The Positive and Negative Points in Buying a New vs Pre-owned Home
Having your own house is always a dream shared by many people. As most of us love to buy our own house, one interesting problem facing some of us is what type of home to buy, a brand new or pre-owned home!
We will discuss the positive and negative points of buying a new and pre-owned house.
If you decide to buy a new house one top advantage is the extended warranty you can get on your home, structure, and appliances. Since everything in your house is new you can get warranties from 1 to 20 years.
While you are entitled to warranties for your brand-new things, one scary and negative effect of a warranty if you decide to buy a new house is the wear and tear of these items.
In reality, it is sad fact that wear and tear is not part of the warranty guaranteed by law.
Take the case of a carpet if your carpet starts pulling up at the seams, it is hard to get a free replacement especially if the builder can prove you have 5 dogs and 4 kids!
If you decide to buy a pre-owned house you can purchase a warranty since s the seller and the buyer can negotiate to get an extended home warranty on some or all components of the home.
From appliances to swimming pools, to the air conditioning and heating systems. These extended warranties are great because it usually offers the buyer a peace of mind when purchasing a previously owned home.
While an extended warranty is possible in the pre-owned house the negative point is the “What if” factor of the unknown.
If you are buying a new house the chance of builder incentives are very possible since most Builders often will have incentives to get you to sign on the dotted line. Usually, developers will throw in major appliances, upgrades, and ‘bonus’ cash that could be used for closing costs or applied to additional upgrades.
With regards to the pre-owned house, big savings is also a big possibility since everything that the previous owner put into the home, comes with the home. The home seller can decide if they want to throw in furniture and other amenities. This is a major advantage for home buyer’s that want to have a “move-in ready” home.
While inheriting things is nice, one negative point of buying a pre-owned home is the possibility of buying a home with “deferred maintenance”. You could inherit appliances, and home systems that may cost you money in updating or keeping in working conditions.
To avoid this scenario, you should hire a home inspector after your offer has been accepted.
A home inspection will unveil issues that are beyond cosmetics. It will also allow the home seller to address any outstanding concerns/repairs with the home.
Having learned some of the Pros and Cons of a brand new and pre-owned house, we will discuss next the process of building a house on the next page.