New Home or Resale for You?

No matter what items a home buyer has on their wish list, they are typically constrained by the home price. As a result, the buyer is often limited in their choices. Accordingly, buyers prioritize home features and benefits when comparing homes. Deciding between a new home or resale becomes a part of the buying process.

Nonetheless, home buyers often have a choice between a new home or resale. Besides the allure of contemporary design and modern building materials, the benefit of new construction is the minimal maintenance during the first year of ownership. Although many home buyers desire to buy new construction, the combination of their budget and criteria lead them to a resale home.

A resale refers to a home that is being sold by a home owner, rather than the builder. The average age of a resale home can vary depending on the location. It’s not uncommon to find a resale in a new home development. However, when resale comes to mind, most think of homes where they grew up.

Although the home buying budget is a main consideration, there are other reasons why home buyers decide to purchase a resale rather than new construction. One of the main reasons, as stated above, is that the resale fits their criteria for price, location, size, etc. It’s typical to get more house and yard when purchasing an older home, when compared to a new home of similar price. Resale homes tend to be located in established neighborhoods, whereas new home developments’ amenities are often not yet completed.

Regardless, some home buyers are attracted to older homes. It seems as if there is a correlation between a home’s age and the charm it exudes. The older the home, the more likely a home buyer is captivated by its charm. When explaining a home’s “charm,” buyers usually describe a combination of style and craftsmanship. They often refer to the saying “they don’t build them the way they used to.”

Although most home buyers want a turn-key home, some buyers find opportunity in older homes that are in need of repair or updating. These buyers feel they can create a home that meets their needs and lifestyle without breaking their budget.

When buying a resale, don’t expect the home to be perfect, even if the home is relatively new or has been renovated. There is no getting around the fact that living in a home promotes wear-and-tear. Consider that a home is made of many components each having a limited life span. Regular maintenance can prolong a home’s life. However, you will eventually have to replace components and systems.

Resale homes are not maintenance free, and deferring maintenance creates costlier repairs. Experts recommend that you have a repair budget. You shouldn’t just budget for regular maintenance and repairs, you should also budget for future updating. Ask your agent about a home warranty that can help you with repairs on a fixed service-call fee. Get a thorough home inspection. Home building has changed dramatically over the last one-hundred years, so make sure you hire a licensed inspector that is knowledgeable with the engineering and materials in your home. (Keep in mind that home inspectors are not perfect, so there may be a chance of finding conditions that eluded the inspection.) Even if the home appears to be in good condition, the inspection is likely to find items in need of repair. You and your agent can decide on the best negotiating strategy of inspection repairs.

Original article is published at https://dankrell.com/blog/2019/12/15/new-home-or-resale-for-you/

By Dan Krell
Copyright© 2019

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

February 7, 2014December 13, 2022

Reclaiming the charm and appeal of old homes

“They don’t build’em like they used to…”

… is often heard by those who praise the virtues of an old home. Many home buyers might talk about the character and charm that exudes from an old home, while others might point to the quality of materials and workmanship that cannot be matched by new homes built today.

In some respects, it’s good they don’t build homes the way they used to because some materials used in the past that were thought to be beneficial have been found to be toxic and/or hazardous. Building materials have changed through the years and continue to evolve for safety, strength, durability, and environmental impact. Many home components are engineered and prefabricated to make installation straight forward, as well as make the home increasingly efficient and environmentally friendly. Floor joists and trusses are engineered to allow for larger and open home designs; while roof and siding components engineered to help reduce heating and cooling costs. Foundation and basement construction techniques and components are designed to be effective in preventing water penetration.

Workmanship has also changed over the years as well. Because engineered materials are typically prefabricated, onsite custom design and installation is not necessary; construction crews are basically required to know how to use and install the pre-manufactured components.

Hazardous materials aside, there is something about old homes that grabs our attention. Because the building materials and components were not mass produced or prefabricated, perhaps it’s the workmanship of the construction that demonstrates that the on-site craftsmen were not just masters of their trade – but artisans.

Although new homes incorporate modern fixtures and appliances designed for comfort, functionality, and efficiency; many are drawn to the antique quality of the old home. Old home parts are highly sought after items for modern homes too. Many are lured by the appeal and personality of vintage home parts, but I also sense there is also something about the durability of the parts that lets them continue in service. Vintage doorknobs, especially the crystal type, are collectible and sought after antique home parts.

Those who appreciate old homes talk about the hearty materials that were used in construction. Compared to the new engineered components manufactured to an exact specification, the craftsmen who built the old home onsite appeared to use ample materials that made the construction feel sturdy and robust. This “over-engineering” is typically frowned upon today; using too much raw materials is expensive and considered wasteful.

Another comparison between old vs. new homes is the lumber that is used in a home’s construction. Some are keen on old homes because they were built from first generation lumber, compared to engineered composites typically used in modern homes. Compared to the wood composites often comprised of glued wood pieces and fibers, first generation lumber is believed to be stronger and more durable. Also known as old growth lumber, first generation lumber refers to lumber that was milled from virgin forests where trees were hundreds of years old. Because of deforestation, old growth lumber is no longer harvested for construction materials.

To incorporate the virtues of vintage and old building materials in modern homes, many reclaim those resources from tear downs. From classic fixtures and hardware to first generation wood, the reclaiming industry has become popular not only to be environmentally friendly – but to reclaim the charm and character of a bygone age.

by Dan Krell ©

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. This article was originally published the week of February 3, 2014 (Montgomery County Sentinel). Using this article without permission is a violation of copyright laws. Copyright © Dan Krell.

December 5, 2012November 23, 2021

Missing pieces to a housing recovery

by Dan Krell
DanKrell.com
© 2012
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As the housing market expectantly slows for the winter months, we can start reflecting on this year’s housing statistics. Home sale figures appear to point to a year ending slightly better than last. But it may be that local home sale stats may not best those posted during the 2009-2010 period. It appears that there are missing pieces to the housing market, which if not put into place, could result in a new real estate norm. Let’s take a look at the puzzle…

First, the National Association of Realtors® (Realtor.org) reported that national pending home sales have been elevated most of the year; and although national existing home sales have increased during October, the numbers fluctuated throughout the year. Of course, trying to determine the local state of housing through the national market snapshot may be like trying to see a local road map by looking at the solar system; but there is truth to what NAR Chief Economist Lawrence Yun described as “…rising consumer confidence about home buying…”

Second, New home sales have increased compared to last year. Although the existing home sales statistics reported by the NAR may have co-mingled some new home figures in the data (due to the methodology), the U.S. Census Bureau (census.gov/construction/nrs/) reports new home sales. Not surprisingly, October new home sales increased about 17% compared to October 2011, and 2012 year to date new home sales increased about 20% compared to 2011.

A forthcoming piece to the puzzle, which may likely be reported in the latter weeks of December, is that November was another positive month for real estate. And more importantly – November may have been a brilliant month locally. A preliminary analysis of Montgomery County MLS (Metropolitan Regional Information Systems, Inc.) home sale figures (all inclusive) point to a marked sales volume increase in November compared to November 2011, as well as an increase in the average monthly home sale price (dankrell.com/realestate).

Another piece to the local real estate puzzle is home buyer behavior. Home buyers in the market are increasingly demanding about what they are getting for their money. Given the lack of home listings in the resale market (down about 27% from 2011 year to date through October for Montgomery County single family homes: gcaar.com), combined with variances in home sale prices and the cost for renovations and updates on many homes; home buyers perceive value in purchasing new homes compared to buying a resale in today’s market. This is an unacknowledged reason for the surge of new home sales this year, and why new home builders have rebounded before the resale market.

The missing pieces to improving the resale market are inventory and home prices. As mentioned, a lack of home inventory continues. If resale inventory were to match those of previous years, it stands to reason that resale inventory would also increase. Inventories are lackluster most likely because many home owners have put their selling plans on hold until they are convinced that home prices have stabilized.

It’s welcome news that the 2012 housing market is slightly better than the 2011. And although the landscape of the local market has improved, home sale figures are not much better than those posted during 2009-2010. If resale inventory does not increase, the resale market of 2013 will probably be much like that of 2012.

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This article is not intended to provide nor should it be relied upon for legal and financial advice. This article was originally published in the Montgomery County Sentinel the week of December 3, 2012. Using this article without permission is a violation of copyright laws. Copyright © 2012 Dan Krell.

“They don’t build’em like they used to…”

by Dan Krell DanKrell.com © 2012 Google+

by Dan Krell
DanKrell.com
© 2012
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