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Key Things To Consider With New And Existing Homes May 6, 2009

Posted by minnesotarealty in MN Realty.
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The purchase of a new Minnesota home is always considered a rewarding experience by many first time homebuyers not only because it allows couples or families to enjoy an entirely new space, but due to the convenience it provides particularly with the brand new amenities minus the hassles of maintenance during the first year.

Nevertheless, brand new properties are more expensive than existing ones and you’re not always sure what awaits you in the new neighborhood you will be living in.

Understanding the benefits and drawbacks of each scenario can help you make the best decision about your new home purchase; consider the following important points as you get started on the home buying process:

1. Are you willing to spend extra for a new home’s purchase? Because of its newness, all brand new homes are priced at a premium; this means that you will be the one to get a taste of everything it offers, from the moment you entered your new property.

2. Do you care for resale value? Existing homes can have slower appreciation than newly-constructed ones, as explicated by Ilyce Glink (writer of the book ‘100 Questions Every First-Time Home Buyer Should Ask’). When you have plans of selling your home in the near future, it may be a good idea to have a brand new home because it’s market value is higher and you can profit at a larger scale from it.

3. Can you easily adapt to a new neighborhood? Many new home constructions move at a very fast rate and as one of the first homeowners in the area — knowing what the neighborhood is like wont happen unless you get to meet more people in your new environment. If you have family consisting of smaller children or elderly living with you, it can be great to factor in safety and security by finding out your options as far as making your property safe.

4. Are you willing to invest your resources for home renovation ? Existing homes can appreciate tremendously in value if you have the time and resources to invest in renovations and maintenance. You may opt for a ‘fixer upper’ if your plan is to have a long-term investment to give you a high profit at a short time.

5. Are you looking for an investment or a primary residence? Many younger first time home buyers are looking for MN investment properties that they can fix up and sell quickly to turn a profit. Mature home buyers are more likely to be in the market for a primary residence since they want to settle down and establish themselves in the neighborhood. Consider what your short-term and long-term goals are so you can make the best decision for your first home purchase.

Deciding whether to buy a new or existing home will largely depend on your short and long-term goals, and the amount of money you are willing or able to spend right away. Consider all of the above questions when you’re deciding between the two options so you can make the best investment with your resources.