Volume 3: Resale, Inventory Home, or Custom New Build; Which is best for you?
When discussing buying your next home, you might not know where to start. Understanding the differences between a resale home, inventory home or new build will be key to finding the right fit for your family’s bright future. What’s important to you? Location is usually the first question; do you want to be close to family? Your job? Maybe you have a specific school district in mind. All these options are important considerations for every homeowner.
Once you narrow it down to “where”, the next unknown is “what?” Do you want one story or two, three car garage or two car garage, big yard or little yard? What fits your lifestyle? The next question is “how?” Should you look for a resale home, inventory home or new build? This is usually where people run in to the questions that inspired this article. My hope is this article will direct you to ask the right questions to uncover your specific wants and needs.
When considering the resale option, you are looking at a standing home that has already been built, usually in an established neighborhood. A significant benefit is that once the home is inspected and researched to ensure no major damages or defects (i.e. foundation, AC, or roof) you understand what you are buying without any hidden fees or hurdles. If you are a handy person and purchase a fixer-upper, you may be able to buy it at a lower cost and have higher equity if you are willing to put in a bit of work yourself with an extra investment.
Usually this is one of the most cost-effective ways to purchase because you’re dealing with an older home that has a depreciated value. However, purchasing a resale might mean you are sacrificing new technology and energy efficiency.
Another disadvantage to purchasing a resale is warranties are usually not transferable so most of the coverage the home once had with its first buyer is gone.
Inventory New Homes
There are several benefits to buying a new inventory home, such as receiving the latest energy efficiency, newest technology, lower insurance rates and being the first owner. No one has ever used or lived in this property before you.
You also get all the warranties that come with the new home. Usually builder warranties are included, but the manufacture warranties that go above and beyond are what make this new inventory home sale valuable. Another benefit is that as a standing structure, you can move in to your new home as soon as the financing goes through. Financial Institutions usually take thirty-to-forty days to close.
The downside to a new inventory home, especially in a production community, is all the decisions have already been made. You have absolutely no input on the selections, cosmetics or overall structure of the home since it is already created and polished. Homes in a production community are usually defined as homes in close vicinity to each other with similar architecture and features.
Semi-Custom or Custom New Build
Choosing this option would ensure you are building a home that is entirely and completely yours. One of the benefits to semi-custom or custom homes is that they are typically built on larger land lots with greater distances between homes, with varying architecture and features from their neighbors. Now if you are working with a semi-custom or custom home builder, you’d be able to design a custom plan or make changes to an existing plan so that it fits your unique needs. Everything from the layout of the home to the space in each room are exactly to your specifications and lifestyle. A large kitchen, family area and game room, are all things that can be uniquely laid out in your floor plan.
The key to customization is being able to price the project while it is being designed so you stay in your budget.
A negative aspect of building a semi-custom or custom project is usually there is a longer time frame; the design and build can take, on average, anywhere from six months to twelve months depending on size and location. Building a customized home from scratch might be the costlier alternative to resale or new inventory home but it is the only option that allows you to build a home that you wouldn’t change a bit.
After reviewing the different options for your next home, it is important to find the course of action that fits you best. We would love to help you with your new home. We can set up an appointment at any of our locations, at your convenience, to ensure you get the best information to make the best decision. We have new inventory homes available for quick move in, or we would love the chance to interview to build your dream home.