“Is buying or building a new custom Florida home a better financial choice than buying a resale home and renovating it?” Doing your homework gives you an edge in any residential real estate market, and nowhere is knowledge more vital than when buyers ask this classic question.
It’s a common conundrum, and we at ICI Homes are happy to help you navigate your decision tree. Start with making lists (wants vs. needs, must-haves vs. nice-to-haves, optimal locations, home sizes and your household’s lifestyle). Then fine-tune your budget and price range.
With all that in mind, consider the following topics.
What about buying a resale?
The definition of a used car applies to a home being sold by its current owner.
Like used vehicles, resale homes are evaluated by age, condition and appearance. The best ones look great, have been well maintained, and are attractively priced. Like a vehicle, they also can cost less because they have more “mileage” and “wear and tear,” unlike a new home.
But finding a resale that fits your household can resemble searching for a unicorn. Once you find one (or several), what are the odds that you’ll love its exterior, interior and landscaping — and not change a thing?
We thought so.
What about new construction?
You typically purchase a new home by having one built, or finding a move-in-ready home that checks all your boxes. A move-in-ready home is usually a popular floor plan built with a timeless, neutral design. It’s geared toward a broad range of buyers, and is perfect for those who don’t want to wait to build, or don’t have the time to do so.
New construction can cost a bit more than a resale, just like a new vehicle. But that higher cost (versus buying a resale) is offset by the fact a new home hasn’t been lived in or “used.” It’s ready to go.
Which brings us to…
The financial piece
Set your price range and stick to it!
Staying “inbounds” gives you helpful boundaries. You’re less tempted to say, “What if,” or to waste time reconfiguring dollars and delaying mortgage applications. Plus, the last thing you want to do is overextend your financial resources.
Here’s why the above is so important. A solid resale in a good location might be priced right, but the decor harks from the disco era. You’ll need to consider the added costs of interior renovation to bring paint, flooring, light fixtures and room flow into the current century. And that might be one of several renovation projects awaiting you, even if the roof doesn’t have to be replaced yet, but you know that’s coming two or three years down the road.
How much money will you really have saved buying a resale rather than a new home? That’s the question you must answer when making your choice.
Ready for your new custom Florida home? Talk to ICI Homes here.