The Real Estate Encyclopedia
Should I Buy A New Home Or A Resale Home?
Category - Home Buying Questions - Search & Offer FAQ's

If your goal is to buy a home for its resale value and the one you are thinking of buying in an older neighborhood is at the upper price end for that neighborhood, it may not be the wisest choice. If it is similar or lower in price to the others, then there should be no problem, because pricing should be considered in relation to the local neighborhood and not compared to homes in other neighborhoods (for the most part).

 

Buying a home in a run-down neighborhood in a great location where homes are being fixed up, e.g. it is located in a neighborhood that is “improving,” could turn out to be a very good investment as long as you don't "overpay" because of the recent improvements.

 

When buying a home, a buyer should always consider 1) the property’s value compared to other recent sales in the neighborhood, 2) what its potential resale appeal and value would be (will other buyers in the future be as attracted to it as your are.  You do not want to buy a home considered to be or described as “unique” if you are seeking a good investment), 3) how does the home satisfy your and your family’s needs.  After all, you are planning to live in it and the neighborhood for a while (what are the local schools like?  What are the county plans for improvements in the area?)

 

When buying a new home, resale value will depend mostly on its location and the features it offers.  In this case, if you are looking for a good investment, you may want to compare several neighborhoods for any incentives the builders are offering and perhaps consider buying a smaller home in an upscale subdivision. 

 

 
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Home Buying Questions - Search & Offer FAQ's
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