| New Home |
| Resale Home |
| Comparison |
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| New Home |
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A New Home can be purchased from the Builder while it is being built OR after it is completely built.
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| Advantages |
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Lot and Floorplan (with modern architecture and layout) selection possible |
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Colors, bricks, wood finishes, countertops and many more basic features can be selected. And optional upgrades can be negotiated at the Contract time |
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Builders offer structural and other warranties for certain period of time. And new appliances and systems include direct manufacturer's warranties |
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Being the first occupant, house can be decorated based on your personal preferences |
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Less or no maintenance needed for the first few years because of the new materials used for construction |
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| Disadvantages |
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Immediately after moving-in, plan for more after-closing expenses like window coverings, landscaping, fencing, ... |
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Longer cleanup and settling time with un-settled lawns and paved driveways, and with dust from unsodded areas and construction traffic |
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Moving-in time depends on timely completion of construction, if there are no problems with permits or trade strikes |
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Mortgage interest rate can not fixed until the construction is closed to completion (couple of months before closing) |
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More major issues including construction defects (like water leak) and other issues (like floor squeak) will be uncovered in the first few years |
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| Resale Home |
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A Resale Home can be purchased from the Owner directly OR through a Real Estate Agent.
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| Advantages |
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Lower price compared to New Home because of some wear and tear |
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All the major issues (including construction defects) must have been already resolved |
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All the upgrades (like hardwood floors, finished basement) are available at a depreciated cost |
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Less after-closing costs, because window coverings, landscaping, fencing (and others) are already available |
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Short and defined Moving-in time because the current owner can move-out as soon as needed, generally |
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Mortgage interest rate can be locked before closing, and monthly mortgage payment can be calculated |
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| Disadvantages |
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Home has already been used by others and it is not a brand new home |
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Floorplan and lot can not be changed |
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Basic features like colors, bricks, wood finishes can not be changed. Optional upgrades from the builder can not be added now |
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Generally, the current owner does not offer any warranty for repairs, but builder's and manufacturer's warranties are still available |
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Expensive and time consuming to change the current decoration, if needed |
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| Comparison |
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Following table summarizes the important features of New and Resale Homes:
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| Feature |
New Home |
Resale Home |
| New |
Yes |
No |
| Lot and Floorplan |
Can Change |
Can not change |
| Basic Features |
Can change |
Can not change |
| Warranties |
Yes |
No |
| Maintenance |
Less |
More |
| Mortgage interest rate |
Unknown until completion |
Known before contract |
| Moving-in time |
Unknown (depends on construction) |
Known and Fixed |
| After-closing expenses |
Highest |
Lowest |
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| Comments? |
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