Build vs. Buy?

I had an interesting call the other day from a Realtor who had a client he wanted to register with the builder I rep. He told me how they have been looking at existing homes and finally came to the conclusion that they need to consider building to get exactly what they want. I told him I would fax over the registration. As we continued to talk, he told me how he had convinced them to consider building. He said, “I told them building is much more costly than buying existing, but they will get what they want.” WHOA! Wait just a minute! I quickly switched into my teaching mode to help this misinformed agent about why building it NOT necessarily more expensive than buying an existing home in the grand scheme of things.

I pointed out to him that while a new build may cost more up front, his clients don’t have to make repairs and fix things that usually have to be done in 5-7 years of buying an exisiting home. A new roof, new furnace, new carpets . . . these are all costly items that most home buyers want/need to replace in the first few years of owning an existing home.

Building a new home allows your clients to chose (and pay for) exatly what they want. They are not paying for the things that were someone else’s dreams and necessities. Your client may not need that wet bar in the basement. Why pay for it?

Building a new home is a better value in the long run. Your clients can choose exactly what they want. If she loves granite counter tops, she can have them. If the existing home she is looking at doesn’t have granite, she will either have to settle for what is there or she is looking at a costly replacement. In a new build, they don’t have to replace anything before or shortly after they move in. If there are any problems, they will have warranties for replacements, and they always have the builder who they call with any questions or concerns. Who do they call for problems in an existing home? Their Realtor?

Here are some of the benefits of building a new home:

Low maintenance costs

New homes come with everything new, which means fewer repairs on items and on the structure!

Warranty
New homes come with warranties to cover most structural problems, not to mention the warranties that come with any new appliances and features in a new home. Most existing homes don’t have any warranties, which can lead to costly repairs and replacements to a new home owner.

Plus, with a builder, they are just a phone call or e-mail away if you have any questions or emergencies. Check with your builder, but most offer a one-year walk-through.

Amenities
New home usually include appliances, central air and heating systems, more electrical outlets and conveniently placed cable and phone jacks.

Energy Efficiency
New homes consume half as much energy as home built before 1990. This benefits our environment, your health, and your wallet.

Safety
Better heating systems, built-in smoke detectors, and better wiring all decrease the chance of fire. Plus, some older homes may not have been built with egress windows and other features that are mandatory today.

Size
On average, a new home built has approximately 700 square feet of living space more than a house built 20 years ago. More windows, closet space, bigger garages, larger kitchens and bathrooms are some of the benefits we see with the extra space.

Spacious floor plans
New home owners can take advantage of the open floor plans that are available and choose carpets, paint, landscaping, fixtures, etc.

Home-Site selection
You can choose the land and community that is most appealing.

Value
New homes have a longer life, higher appraisal and better resale than older homes.

I think many agents are nervous about recommending a new home. Lack of knowledge about the building process intimidates many agents into not offering a new build as a viable option. I have seen many agents come through our homes and I can tell they are uncomfortable. There are some great classes offered through the Realtor associations. And as an agent ask questions! I am always glad to help another agent understand the process, that is what I there for. You could potentially be losing clients by not offering all that is available.