Homebuilders and decorators make it very alluring; there is no doubt about it. But yes, buying a brand new home in a new subdivision is risky. Some homeowners have certainly found themselves in an uphill battle when the time comes to sell. Competing with homebuilders, still actively building in the subdivision, when the unexpected or a relocation arises, can be tough. The uphill battle will last as long as new construction continues in the neighborhood. Builders will usually start discounting in order to complete one subdivision as they start building in another location.
A pre-owned home will always be a safer choice if there is any possibility of moving in less than 5-7 years.
Builder’s Have The Edge Over Home Seller
The builder’s high profit margins and deep pockets give them an edge over the homeowner competing to sell their home. Unlike the builder, the homeowner can’t cost average, or offer spending allowances, or offer multiple closing costs with lender incentives. Another edge; the vision of, ‘this could be you,’ living in this brand spanking new, beautifully decorated and upgraded model home. The new homebuyer also paid a premium to receive the luxury of being ‘the first’. Unfortunately that privilege can’t be pass to the next buyer. A homeowner who sells too early often struggles to pay the loan balance and their portion of closing costs; let alone recoup a portion of their downpayment.
Easier Resale and Value Stability
Homeowners competing with other homeowners is much more of a ‘level playing field’ so to speak. A safe choice for easier resale and value stability is to purchase a pre-owned home in a well established neighborhood. This can save precious time and money when needing to sell your home in the not so distant future.