Pros and Cons of Buying a Pre-Owned vs Newly Constructed Home

Acquiring a house that you can call home is one of the biggest achievements that you can ever make in life. You finally stop paying rent and own an asset that appreciates in value.

However, purchasing a home can be difficult if you don’t know what to expect. You can either purchase a new home or one that was previously occupied. The pre-owned house may give you more negotiating power because the owners want to see for personal rather than business reasons.

Advantages and Disadvantages of Buying a Pre-owned vs New Home

1. Home Warranties

A. Pre-owned Homes

Pros

The seller of a pre-owned home can extend the warranties on certain appliances and utilities within the house. These warranties may vary and can cover some or all house components.

Cons

The main disadvantage of buying a used home is that there’s always a possibility of ‘what if’. This means that you may buy one with a good warranty on the swimming pool only to find out later that the pool had a major leaking problem that the previous house owner covered up.

B. New Homes

Pros

A newly built home will come with at least 1-year builder’s warranty and extended manufacturers warranties on individual appliances, which can go for as long as 20 years.

Cons

The warranties of newly built homes will never cover the improper use of home components as well as wear and tear. This could lead to additional maintenance costs.

2. Extra Expenses

A. Pre-owned Homes

Pros

A pre-owned home is likely to have fewer expenses after you buy it. This is owing to the fact that most home owners carry out extensive renovation and repairs before getting a client to close in on the house. You can also get already installed furniture and amenities, which makes moving in a lot easier.

Cons

Just as mentioned earlier, you may buy a pre-owned home only to find that it was far from being finished. This might lead you to spend more on paint, appliances and repairs that you were not ready to pay for.

B. New Homes

Pros

Newly built homes done by a building developer will often offer good incentives that will convince you to purchase the house. In this case, you may also get major appliances, upgrades, and cash back policies for reassurance on quality.

Cons

Sometimes new home buyers will find themselves in a scenario where they have to buy major appliances, such as a refrigerator or dryer. Developers may not offer such items due to the costs involved in acquiring them.

Whether you buy a new or pre-owned home, you have to know what you are getting yourself into. If you can look past the above cons, you can go ahead and make the purchase. In the end, it all depends on what you like.

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