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Can your pre-owned home compete with the homes built in 2013?

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Mortgage and Lending NMLS#1089067

Can your pre-owned home compete with the homes built in 2013? If you are buying or selling a pre-owned home, you must review the HUD and Census Bureau Annual Report on the Characteristics of U.S. Homes Built in 2013 released on June 3, 2014. Each year, HUD and Census conduct a national construction survey that offers national data on the characteristics of new privately owned residential structures, such as square footage, number of bedrooms and bathrooms, type of wall material, and sales prices. Many characteristics are available at the region level. The report has 674 pages, but quickly you can scroll through and review how your pre-owned home compares to newly built homes. There may be gold in that data. If you are selling, it could give you some ideas about upgrades and marketing. If you are buying, it could give you negotiating power. Here are some interesting and amusing, in the report on new single family homes completed:

*91% of homes had air conditioning compared to 49% in 1973. Is it really that hotter across our nation?

*In the northeast, 83% of homes had A/C, but in 1973 86% didn’t. Is it time to start an A/C business in the northeast?

*The three bedroom home has been king since 1973, but in 2013 44% of the homes completed were four bedroom homes and the three bedroom home was at 46%. Will three bedroom homes be discounted to compete with the four in the future?

*For the second time since 1999, the 4000 plus square foot home was at 10% from 8% in 2012. Should we invest in vacuum cleaner companies to clean all of that space?

 

Again, there are golden nuggets in the data to help you buy or sell a pre-owned home to compete with those homes built in 2013 or before. Know your market and competition for the best price. Seek counsel from your local professional licensed realtor for guidance.

Comments(6)

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David Popoff
DMK Real Estate - Darien, CT
Realtor®,SRS, Green ~ Fairfield County, Ct

I am sure it changes from region to region, here in Ct the older homes tend to have great character and the new homes tend to be more energy efficient.

Jun 03, 2014 11:36 PM
Jimmy Van Smith
Frisco, TX
Residential Mortgage Loan Originator

Excellent observation, I would say that is a golden nugget!

Jun 03, 2014 11:57 PM
Sophia Lin
Intero Real Estate Services - Sunnyvale, CA
Sunnyvale CA Real Estate Specialist

Hi Jimmy, very interesting. New houses are nice in a lot of ways, but I'm still a fan of older homes. Not only are they better built, but they are more stylish too.

Jun 04, 2014 01:37 AM
Jimmy Van Smith
Frisco, TX
Residential Mortgage Loan Originator

Thanks Lin! More golden nuggets to market the pre-owned home.

Jun 04, 2014 04:02 AM
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

I guess the answer is, it depends. Many older homes have a certain charm that a newly built home doesn't have, but overall condition and location will also factor in.

Thank you for commenting on my post.

Jun 04, 2014 04:20 AM
Jerry Newman
Brown Realty, 210-789-4216, - San Antonio, TX
Texas REALTOR, San Antonio Military Relocation

Jimmy, this is certainly some great data to share with everyone. The new construction home builders are listening to what the buyers want in a new home more these days, so it's not surprising to hear about all these changes in 2013.

Jun 04, 2014 09:49 AM