In the last four or five years the Principle of Substitution had lost a lot of its impact in Coweta County GA when attempting to evaluated a resale property based on the cost of purchasing a similar new home.
After a all, when you can purchase a distressed resale property for up to 50% of the cost of building a similar property, buying the older product falls into the “no-brainer” category.
But now we are seeing a unique phenomenon in our Coweta County real estate market that really makes buying a new home a very attractive proposition.
Many new homes are being constructed on lots that have lost about 80% of their original market value. Since the cost of the real estate itself has dropped so dramatically, the lower cost of new homes combined with an ever dwindling resale market have put the Principle of Substitution back into play.
A prudent buyer should always consider the price of a similar new property when attempting to purchase a resale home.
Because if you can now buy new for less, that’s a real no-brainer!
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