New Construction vs. Fixer-Upper
You’re ready to purchase a home, but not quite sure whether it is better to buy a brand new construction home or an older “fixer-upper”. Older homes are typically priced a bit lower, but may come with more investment and surprises than expected. New construction tends to be higher priced up front but you should consider the warranty included and the benefit of semi-customizing your dream home from the start as opposed to putting in the elbow grease to get an older home to that point. Think about the pros and cons to both before making your final decision.
Even though they are more expensive upfront, everything inside is new and shouldn’t need any major repairs or renovations for several years. If anything does go wrong, you typically have a warranty in the contract so be sure to keep that in mind when purchasing. Unlike customizing with a fixer-upper and adding costs as you go, with new construction you can customize during the design process and all costs will be calculated into your purchase price. This will help prevent surprise costs from popping up after move-in. The main disadvantage of new construction is ongoing work in the neighborhood and landscape. You may be surrounded by unfinished lots and newly planted trees before the neighborhood begins to take shape.
Sometimes, buyers with limited funds will look to the fixer-uppers first. They have lower upfront costs which is more appealing to the eye . You get to customize as you go and decide what works best when doing improvements or repairs. There is also a personal sense of satisfaction that comes with putting work into your home and seeing a project through to completion. However, there are some disadvantages to a fixer-upper as well. Depending on the condition of the home at the time of purchase, repairs may be ongoing for a long time. There can also be extra hidden costs as you don’t know what’s going on beneath the surface until you get to that project. Just be sure to have thorough inspections BEFORE buying. Even if the mortgage payment is lower than new construction, you could be facing extra money in the budget towards unexpected costs.
In the end, a new construction home or fixer-uppers can both be a great choice for you. Sitting down with a licensed Realtor can help you make the best choice for your lifestyle.