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Benefits of Purchasing a New Home vs Existing Home

September 10, 2018

Most homebuyers won’t be surprised to learn that brand-new homes almost always cost more than resale ones. Because after all, new homes are new and resale homes are used. 

But what exactly do buyers get when they purchase a newly built home — and is it worth it?

Keith Grant, a second-generation owner of Grant & Co., says that new home buyers get a lot of bang for the buck in a newly constructed home, some of which include:

- The ability to choose the finishes, fixtures and decor buyers want;
- A “honeymoon” period during which everything in the house is brand new;
- A builder’s warranty for the home’s finishes, systems and structure;
- Cutting-edge architecture and design;
- Energy-efficient heating, ventilation and cooling and
- Energy-efficient home appliances.

 -Better Locations 

A significant great advantage is that builders like Grant & Co. work hard to make sure they are providing the best possible use of heated square feet and are value engineering their homes.  Thus, homebuyers today have the option of a greater use of space at a better value.  Older homes require more updating and repairs and replacements of major components, which can be costly. All those factors affect the price premium for newly built homes.

Historically, newly built homes cost about 17 percent more than resale ones, based on national median price data that date back to the 1960s. In May 2018, the real estate marketing website, Trulia,  determined that new homes (built in 2013-2014) cost roughly 20% more than similar existing homes. They also found that two in five Americans would prefer to buy a new home.