Buyer Tip: Does It Make More Sense to Buy New Construction?
In negotiating an offer with a first time homebuyer today, the seller countered back at a higher than expected price. This prompted my buyer to ask the question: At what point does it make more sense to buy new construction instead?
In this case, the existing condo is 10 years old. It includes the kitchen appliances, but the washer and dryer are not included. There is also a finished basement that is also a walkout. Again, everything is 10 years old including the flooring, mechanicals, roof, and appliances.
For the same price, new construction condos feature everything new. Still no washer and dryer, but new appliances, lower association fees, and no finished basement. NO walkout lower level either.
So at what point does it make sense to purchase new construction instead of an existing home? It depends on the buyer. If the finished space is important, the existing home has more of that. An established neighborhood could be important. Who wants to live in a construction zone with people banging around every morning starting at 7:00 am?
In the end, the seller's agent was told that the buyer was also considering new construction in hopes that the seller will negotiate a little more to keep the buyer. You never know what the seller has already heard after 6 months on the market. They have likely lost to the new construction in the same area before this buyer. Only time will tell.