Homeownership actually shields you from the rising costs inflation brings.

Freddie Mac explains how: 

“Not only will buying today help you begin to build equity, a fixed-rate mortgage can stabilize your monthly housing costs for the long-term even while other life expenses continue to rise – as has been the case the past few years.”

Unlike rents, which tend to rise with time, a fixed-rate mortgage payment is predictable over the life of the mortgage (typically 15 to 30 years). And, when the cost of most everything else is rising, keeping your housing payment stable is especially important.

The alternative to homeownership is renting – and rents tend to move alongside inflation. That means as inflation goes up, your monthly rent payments tend to go up, too (see graph below):

A fixed-rate mortgage allows you to protect yourself from future rent hikes. With inflation still high, when your rental agreement comes up for renewal, your property manager may decide to increase your payments to offset the impact of inflation. Maybe that’s why, according to a recent survey, 73% of property managers plan to raise rents over the next two years.

 Having your largest monthly expense remain stable in a time of economic uncertainty is a major perk of homeownership. If you continue to rent, you don’t have that same benefit and aren’t as protected from rising costs.

Bottom Line

A stable housing payment is especially important in times of high inflation. Connect with a real estate agent so you can learn more and start your journey to homeownership today.
“For more real estate advice and industry trends, do not forget to check Residence HQ regularly.“

The post Owning a Home Helps Protect Against Inflation appeared first on Residence HQ.

Looking back at every April since 2017, the only year fewer sellers listed their homes was in April 2020, when the pandemic hit and stalled the housing market (shown in red in the graph below). In more typical years, roughly 500,000 sellers add their homes to the market in April. This year, we saw fewer than 400,000 sellers entering the market in April (see graph below):

While there are several factors contributing to this trend, one thing keeping inventory low right now is that some homeowners are reluctant to move when the mortgage rate they have on their current house is lower than the one they could get today on their next house. It’s called rate lock.

As a recent survey from Realtor.com explains, 56% of people planning to sell in the next 12 months say they’re waiting for rates to come down.

While this wait-and-see approach is right for some sellers, it also creates an opening for more eager sellers to jump in now.

If your current house truly doesn’t fit your needs and you’re ready to move, don’t miss this chance to stand out. When fewer sellers put their homes up for sale, buyers will have fewer options, so you set yourself up to get the most eyes on your house. That’s why your house could see multiple offers as buyers compete over the limited supply of homes for sale – especially if you price it right.

As Lawrence Yun, Chief Economist at the National Association of Realtors (NAR), says:

“Inventory levels are still at historic lows . . . Consequently, multiple offers are returning on a good number of properties.”

When and How to Sell Your House?

Selling a house can be competitive, and timing plays a crucial role in attracting potential buyers and securing the best possible deal. The statement suggests that by being proactive and putting your house on the market before the competition, you can gain an advantage and increase your chances of receiving multiple offers. To achieve this, partnering with a real estate professional is recommended to navigate the complexities of the selling process effectively.

Here are some key points to elaborate on:

• Beat the competition: When selling real estate, being ahead of the competition can be advantageous. Listing your house for sale before similar properties become available gives you a higher chance of attracting actively looking buyers. This early entry into the market can generate more interest, as potential buyers may perceive your property as a fresh opportunity.
• Standing out from the crowd: Listing your house ahead of others can make your property stand out. This can be accomplished by ensuring your house is in excellent condition, staging it attractively, and highlighting its unique features and selling points. A real estate professional can provide valuable insights and advice on effectively showcasing your home’s strengths.
• Generating multiple offers: When multiple buyers are interested in a property, it can lead to a competitive bidding situation. This scenario often benefits sellers by driving up the price and increasing the likelihood of securing a favorable offer. By listing your house early, you increase the chances of attracting multiple offers because potential buyers may feel a sense of urgency to make an offer before other desirable properties hit the market.
• Partnering with a real estate professional: Working with a real estate professional who understands the local market can be instrumental in achieving your goals. They have experience in pricing your property appropriately, marketing it effectively, and negotiating with potential buyers. A skilled real estate agent can advise you on the best timing for listing your house, considering market conditions and buyer demand.
• Maximizing exposure: Real estate professionals have access to various marketing tools and networks that can give your house greater exposure. They can create high-quality listings, promote your property through multiple channels (such as online platforms, social media, and their professional network), and schedule open houses or private showings. These efforts can attract a larger pool of potential buyers and increase the likelihood of receiving competitive offers.

It’s important to note that while listing your house before the competition can be advantageous, it’s also essential to ensure your property is market-ready. Take the time to address any necessary repairs, declutter and stage your home, and consider any improvements that could enhance its appeal. Your real estate professional can assist you in preparing your house to make a strong first impression on potential buyers. Overall, by being proactive, partnering with a real estate professional, and strategically timing your listing, you can position your house to stand out in a competitive market and potentially receive multiple offers, ultimately increasing your chances of a successful sale.

The post The Best Time to sell your House is when Others aren’t Selling appeared first on Residence HQ.

“. . . the big question is whether we are finally starting to see the seasonal spring increase in inventory. The answer is no, because active listings fell to a new low last week for 2023 . . .”

The National Association of Realtors (NAR) confirms today’s housing inventory is low by looking at the months’ supply of homes on the market. In a balanced market, about a six-month supply is needed. Anything lower is a sellers’ market. And today, the number is much lower:

“Total housing inventory registered at the end of February was 980,000 units, identical to January and up 15.3% from one year ago (850,000). Unsold inventory sits at a 2.6-month supply at the current sales pace, down 10.3% from January but up from 1.7 months in February 2022.”

Why Does Low Inventory Make It a Good Time To Sell?

The less inventory there is on the market when you sell, the less competition you’re likely to face from other sellers. That means your house will get more attention from the buyers looking for a home this spring home sales season surely. And since there are significantly more buyers in the market than there are homes for sale, you could even receive more than one offer on your house. Multiple offers are on the rise again (see graph below): 

If you get more than one offer on your house, it becomes a bidding war between buyers – and that means you have greater leverage to sell on your terms. But if you want to maximize the opportunity for a bidding war to spark, be sure to lean on your expert real estate advisor. While we’re still in a strong sellers’ market, it isn’t the frenzy we saw a couple of years ago, and today’s buyers are focused on the houses with the greatest appeal. Clare Trapasso, Executive News Editor at Realtor.com, explains:

“Well-priced, move-in ready homes with curb appeal in desirable areas are still receiving multiple offers and selling for over the asking price in many parts of the country. So, this spring, it’s especially important for sellers to make their homes as attractive as possible to appeal to as many buyers as possible.”

Bottom Line

If you’ve been waiting for the right time to sell your house, low inventory this spring sets you up with a big advantage. Reach out to a local real estate professional today to make sure your house is ready to sell. 

The post The Big Advantage if You Sell This Spring! appeared first on Residence HQ.

“Move-in-ready homes with curb appeal and in desirable areas—and that are priced to sell—are especially likely to move quickly this spring.”

In today’s market, how you price, your house will not only make a big difference to your bottom line but to how quickly your house will sell.

Why Pricing Your House Right Matters

Your asking price sends a message to potential buyers, especially today.

If it’s priced too low, you may leave money on the table or discourage buyers who may see a lower-than-expected price tag and wonder if that means something is wrong with the home.

If it’s priced too high, you run the risk of deterring buyers. When that happens, you may have to lower it to drive interest when your house sits on the market for a while. But be aware that a drop can be seen as a red flag by some buyers who will wonder what it means about the home.

To avoid either headache, price it right from the start. A real estate professional knows how to determine the ideal asking price. They balance the value of homes in your neighborhood, current market trends, buyer demand, the condition of your house, and more to find the right point. This helps lead to stronger offers and a greater likelihood your house will sell quickly.

The visual below helps summarize the impact your asking price can have:

Bottom Line

Homes priced at the current market value are selling faster, at a better price, and with less hassle right now. To make sure you price your house appropriately, maximize your sales potential, and minimize your hassle, reach out to a trusted real estate professional.

The post Want to Sell your house this spring? Price it right! appeared first on Residence HQ.

How Equity Has Grown in Recent Years 

Because of the imbalance between how many homes were for sale and the number of homebuyers in the market over the past few years, home prices appreciated substantially.

And while price appreciation has slowed this year, that doesn’t mean you’ve lost all the equity in your home. In fact, the latest Homeowner Insights report from CoreLogic finds the average homeowner’s equity has grown by $34,300 over the past year alone.

And if you’ve been in your home longer than that, chances are you have even more equity than you realize.

While that’s the national number, if you want to know what happened in your area, look at the map below from the Federal Housing Finance Agency (FHFA). It shows on average how much home prices have risen over the past five years, which has been a major driver behind growth.

Why This Is So Important Right Now 

While equity helps increase your overall net worth, it can also help you achieve other goals, like buying your next home. When you sell your current house, the equity you’ve built up comes back to you in the sale, and it may be just what you need to cover a large portion – if not all – of the down payment on your next home.

So, if you’ve been holding off on selling, it may be time to find out how much equity you have and how it can help fuel your next move.

Bottom Line

Homeownership is a long game, and if you’re planning to make a move, the equity you’ve gained over time can make a big impact. To find out just how much equity you have in your current home and how you can use it to fuel your next purchase, connect with a local real estate professional.

The post Equity Gains for Today’s Homeowners appeared first on Residence HQ.

Vessels, blooms, botanicals, throw pillows, spring mugs, light layers, candles, artwork, plants (real or faux), books, trays, baskets.

Places Spring Flower Sprigs in a Vase

Gather some flowers from your garden or divide a bouquet into smaller bud vases. You can also use dried florals, such as lavender. They last a long time, so you get a lot for your money!

Add lightweight throw blankets to the mix.

Use a lightweight throw blanket to update your decor! These mudcloth throw blankets are perfect for tossing over furniture to add texture, pattern, and color. They’re reversible, light, and soft, and they’re machine washable!

Doormat for Spring

As you enter your home, a new spring doormat can lift your spirits. You could even put a pretty patterned rug underneath.

Arrange Tulips in a Basket

Treat yourself to a grocery store bouquet, but instead of a vase, place it in a narrow basket! It adds an interesting texture.

 A Basic Spring Mantel

Decorate your mantel or shelf with simple spring accessories such as birds, flowers, and books!

Furniture Spring Cleaning

Vacuum or spot clean your upholstered furniture (as directed by the manufacturer). Wooden pieces should be dusted. Slipcovers can be washed or dry cleaned.

Design Your Coffee Table

Set out a book that inspires you (binding color, topic, or cover photo! ), arrange spring objects such as shells in a pretty bowl, or include any botanical element such as a plant or flowers. To corral items or create a firm surface on an ottoman, use a large rectangular or round basket.

Create a Teacup Garden

Plant violas in tea or coffee mugs with wide mouths! Water sparingly to keep them moist without becoming soggy. You can also use the flowers as a garnish for food!

 Replace Your Bedding

Say goodbye to your winter layers and drab colors and revitalize your bed! Also, wash all bedding, curtains, and vacuum rugs! Replace the bedding with new patterns, lighter, airier shams and blankets.

Spring Door Basket

Make a spring door basket out of branches or other botanicals. Hang the basket from a door hook or a ribbon tied to the door’s top.

The post Top Ten Spring Décor Tips: appeared first on Residence HQ.

A lot of the time, these reports are assuming things that aren’t realistic for the average household. For example, the methodology behind one of those reports says that renting is the smarter financial option because of the opportunity to invest money elsewhere. It assumes renters take the money they’d spend on costs tied to buying a home and put it in an investment portfolio.

But here’s the thing – most people who rent aren’t making those investments. Ken Johnson, Co-Author of the BH&J National Price-to-Rent Index, explains:

“One of the difficulties with the rent and reinvest model is many people . . . simply rent and spend the difference. . . . That’s wealth destroying.”

The reason homeownership is one of the best investments you can make is the wealth it helps you build. That’s why there’s a significant difference between the net worth of the average homeowner and the average renter (see graph below):

So, before you renew your rental agreement, think about the opportunity to build wealth that homeownership provides.

Bottom Line

If you find yourself torn between the decision to rent or buy a home, it can be helpful to seek the guidance of a real estate advisor. A good advisor will be able to provide you with the information and insights you need to make an informed decision. They will take the time to understand your unique circumstances and goals, and can help you evaluate the pros and cons of both renting and buying.

They can provide you with information on the local real estate market, including trends in prices and inventory, and can help you assess the affordability of different options. Additionally, they can help you navigate the home buying process, from finding the right property to negotiating the best price and closing the deal. Ultimately, working with a real estate advisor can help you feel confident in your decision and ensure that you make the best choice for your financial and personal situation.

The post Is it better to Rent than Own a Home Right Now? appeared first on Residence HQ.

The calculations are highly personalized. How much you’re likely to pocket at the closing table is determined primarily by your current equity, outstanding mortgage balance and closing costs.

What are the net proceeds from a home selling?

Net proceeds are how much money you’ll make after you’ve accounted for all the costs associated with selling your home. Simply put, your net proceeds are your home sale price minus the mortgage payoff amount, home sale prep costs and closing costs.

The average U.S. homeowner spends $20,871 in extra or “hidden” costs related to selling a home. Your net proceeds can be impacted by many different types of costs, which should be subtracted from the sale price.

Typical costs associated with selling

To determine how much you’ll make, you first need to know the expenses that usually come with selling.

Home prep costs

Sellers often make necessary repairs or eye-catching upgrades prior to listing, with the goal of selling faster and for money. Since these investments will help you sell the home, factor them into your net proceeds. The typical seller spends roughly $6,000 completing pre-listing home improvements.

Moving costs after selling

Factor in how much it will cost to move out of your home, including things like truck rentals, professional movers, packing materials, storage and temporary housing costs.

• Local moves of under 100 miles with two movers and one truck usually cost between $80 and $100 per hour, plus an additional $25 or $50 per hour for additional movers.
• Long-distance moves (over 100 miles) range between $2,000 and $5,000 per move, plus an average of $0.50 per pound.

Mortgage payoff amount

The mortgage payoff amount is how much you still owe on your home. You should also include paying off any home equity loans or lines of credit you’ve taken against the property. If you’ve owned your home for a long time or if your home value has increased significantly, your mortgage payoff amount will be substantially lower than your sale price (which means more money in your pocket).

The inverse is also true. The less equity you have, the higher your mortgage payoff amount in relation to your sale price. Fewer than 10% of U.S. homeowners are in negative equity in their home, which is also called being underwater. This means that they owe more money than their home is worth. This figure doesn’t include homeowners who might owe just slightly less or the same amount but those who may have to bring money to the closing table due to other selling-related costs.

Closing costs and transaction fees

Seller closing costs are one of the biggest expenses in selling a home. Expect to spend 8% to 10% of the sale price on closing costs. For a home selling at the median U.S. home sale price of $230,100, that’s between $17,000 and $22,000.

The majority of that 8% to 10% goes to agent commissions, which can total 6% of the sale price, with half going to the listing agent and half going to the buyer’s agent (yes, it’s typical for the seller to cover the buyer’s agent’s commission).

“Closing costs” is an umbrella term for a wide variety of charges, taxes and fees required to close the sale of a home. Here are some of the most common expenses:

• Commissions
• Title insurance
• Transfer tax
• Escrow fees
• Prorated property taxes
• HOA fees
• Mortgage points (also called discount points)
• Attorney fees

How to calculate profit from selling a house

Once you have a grasp on the types of charges you’ll end up paying, it’s time to crunch the numbers to estimate your home sale proceeds.

1. Determine home value and potential sale price

The typical U.S. home has an estimated value of $226,300, but the value of your home may be much higher or lower depending on factors like the quality of the home, location and local market conditions. Your first step is determining the fair market value of your home. There are a few different ways to do this:

Hire a real estate agent: One of the first things a listing agent will do for you is provide a comparative market analysis (CMA), which can give you insight into an appropriate listing price.

Run the comps: Search for comparable recent sales on your own, seeking out similar homes that have sold within the last three to six months.

2. Get a loan payoff quote

Contact your lender to determine your loan payoff amount. Unlike the remaining loan balance figure you’ll find on your monthly statement, the loan payoff amount includes daily interest charges and any fees you’ll have to pay at closing. Payoff quotes are usually valid for a set number of days, no more than 30.

Ask your lender if there’s a prepayment penalty on your loan. A prepayment penalty is a fee charged by a lender that allows them to recoup some of the interest charges they’ll lose when you sell the house and close out the loan. Not all loans have a prepayment penalty, and those that do usually only apply if you sell within the first few years of buying. How lenders calculate the penalty varies. It could be a flat rate, a percentage of your loan balance or a percentage of the remaining interest you owe.

Example: Let’s say you bought your home 10 years ago for $175,000 with a 6% interest rate on a 30-year fixed mortgage and a 20% down payment of $35,000. Your current mortgage balance would be around $139,000. If you sold for the median sale price of $230,000, that leaves $91,100 for staging, repairs, closing costs, commissions and other expenses.

3. Estimate cost of staging

48% of buyers think some form of staging is important. Home staging can be as simple as decluttering, depersonalizing and cleaning or as significant as whole-home staging by a professional.

Nationally, sellers spend an average of $1,805 on staging as part of an overall $6,570 spent for all pre-sale home prep.

• Total home prep costs are highest on the West Coast: $7,840 in Sacramento, $7,755 in San Jose and $7,620 in San Francisco.
• Total home prep costs are lowest in St. Louis ($3,690), Phoenix ($4,040) and Charlotte ($4,275).

Example: Continuing with the figures from above, using the $91,100 left after paying off your loan and subtracting average home prep costs, your net profit is now $84,530.

4. Factor in needed repairs

Sellers might pay for repairs in one of three ways:

1. Take care of needed repairs pre-listing.
2. Take care of repairs before closing (at buyer’s request).
3. Provide a credit at closing to cover the cost of repairs.

The amount you’ll end up spending depends on the repairs that need to be done on your particular home, but taking care of any major items before listing often makes the most financial sense. New mechanicals or upgrades can help make your home more appealing to buyers, which can drive more and higher offers. It also allows you full control over who completes and how much you pay for repairs, instead of letting the buyer call the shots with a dollar amount they think will cover future repairs.

Example: Buyer concessions, which are the part of the negotiation when buyers ask for a credit or discount on the sale price, typically cost 1% of the sale price, or $2,301 in our scenario. That brings your net profit down to $82,229.

5. Subtract agent commissions or marketing costs

As mentioned earlier, commissions can total 6% of the sale price, depending on how you decide to sell your home. If you opt for a discount broker, you might owe slightly less (4% to 5%), depending on the scope of their services.

You can also save on agent commission by selling for sale by owner (FSBO), but you may still have to pay 3% to the buyer’s agent. The vast majority of buyers do work with an agent, and offering them a commission makes those agents more likely to show their clients your home.

If you sell FSBO, remember that all selling-related tasks fall to you, including marketing, photography, advertising and more. You might also opt to pay an agent a few hundred dollars to get your listing on the local MLS.

Example: If you go the full-service agent route, 6% of the median U.S. home sale price of $230,100 is $13,806, bringing your net profit down to $68,423.

6. Don’t forget transaction fees

No matter how you sell your home, all sellers pay fees to sell a home, whether they end up coming out of sale proceeds or out of pocket. Seller closing costs include things like transfer taxes (in some cities and states), prorated property taxes, prorated utilities, escrow fees and a title insurance policy for the buyer. Overall, these seller closing costs can add up to 2% to 4% of the sale price, depending on where you live and the financial details of your sale.

Example: Again using the median U.S. home sale price, 2% to 4% is $4,602 to $9,204, bringing your potential profit down to $59,219, assuming your transaction costs are on the higher end at 4%.

In conclusion, the total profit for the home in this example is $59,219.

The post How much will I make Selling my House? appeared first on Residence HQ.

Generally speaking, converting from forced air to central heating is a bad idea, or vice versa, since the benefits rarely justify the cost. Instead, upgrade to a more efficient version of your existing furnace or boiler when it’s too expensive to repair — but weigh your options carefully.

Here’s a rundown of the most commonly used heating systems and their advantages and disadvantages to help you make the most appropriate choice for your home, climate, and wallet.

Furnaces heating system

Also known as forced air, furnaces are the most commonly used heating systems in the U.S. because they’re reliable and relatively inexpensive. Gas furnaces are rated for efficiency by their annual fuel utilization efficiency (AFUE) rating. This shows how much energy is successfully converted to usable heat.

If your furnace needs to be replaced, the silver lining is that modern furnaces are more efficient than ever, and some premium models even reach an AFUE rating of 97 percent. When purchasing a furnace, choose one that’s appropriately sized for your home so that it doesn’t put undue wear and tear on your system or waste energy.

Boilers heating system

Boilers use water to generate and distribute heat through pipes and radiators, heating the air, floors, wall and baseboards as it travels in a loop. They can be powered via natural gas, electricity or propane, and they use the following systems to distribute heat:

• Steam radiators are the old-fashioned metal things you’ve seen along the walls in older buildings.
• Hot water radiators are the newer reincarnation and allow more control and versatility.
• Hydronic radiant floor heating treats the entire floor of a room like a giant radiator, using tubing under the flooring to distribute heat to toasty toes. While efficient, hydronic radiant floor heating is expensive to install and replace.

Like furnaces, boilers are rated by AFUE score.

Heat pumps

These extremely efficient systems take advantage of existing temperatures (either outdoors, underwater or underground) to heat, cool, and humidify your home.

There are three types of heat pumps:

• Air-source heat pumps are the most common and circulate refrigerant between the outdoor heat pump and indoor air handler.
• Split ductless systems use one to four indoor air handlers, which are mounted high up on walls and controlled by a remote.
• Geothermal systems are incredibly efficient because they take advantage of temperatures in the ground, pond or a well, but they aren’t practical or affordable for most homeowners.

When selecting a heat pump system, consider the size, noise output and efficiency rating. The heating efficiency is measured by the heating seasonal performance factor (HSPF), and the cooling efficiency is measured by seasonal energy efficiency ratio (SEER).

The post Furnace, Boiler, or Heat Pump? Time for Heating system! appeared first on Residence HQ.

Benefits of new construction

Modern and customizable floor plans

If you opt for a custom-built home, you’ll work with the contractor to create a traditional or modern layout that works for your life. Hankering for a home office for remote work? They can build it. If you’re buying new construction that’s already been completed, chances are good the layout will lean to modern, with wide-open floor plans. Rooms in new construction homes — especially bedrooms and bathrooms — tend to be larger and brighter, with lots of natural light.

Personalized finishes

Even if you’re not getting a custom home, you may be able to upgrade finishes from builder-grade materials if you connect with the builder before construction is completed. It may cost you a bit more, but adding your own personal touches may be worth it to you.

Energy efficiency

New “smart” appliances and home systems are more energy efficient. And more efficient insulation and windows create buttoned up homes that are less expensive to heat and cool than older models. All of that translates into lower utility bills.

Smart and healthy

“Smart” technology options allow you to automate internet, cable, speakers and even an alarm system. And new homes often use low- and zero-VOC (volatile organic compound) paints and building materials, improving indoor air quality.

Lower maintenance

A newly built home typically requires less maintenance since everything from appliances to the HVAC system and roof are brand new. This means you can better predict monthly homeownership costs, since you’ll likely spend less to maintain your home.

Builder warranties

Many newly built homes have warranties that can protect components of your new home for years before you need to undertake any major repairs.

New home communities

Buying new construction often means buying a lifestyle. Master or planned communities often include amenities like parks, pools and community spaces that are close to schools and transit. The key is finding a builder who offers what you care about.

Caters to buyers who value flexibility

The time needed to complete new construction can provide some breathing room if you don’t need to move quickly. You can put an offer on a house that hasn’t yet been built or is in the early stages of construction, and then move in when it’s ready. The timeline doesn’t work for every buyer, so you may have less competition if your moving timetable is flexible.

The flip side

Potentially higher costs

New construction is usually more expensive than a resale home. For instance, the median sales price of an existing home in the U.S. rose to nearly $391,200 in April 2022, while the median price of a brand new home topped $450,600 that same month — a difference of nearly $60,000.

Possibly longer commute

New construction of detached single-family homes tends to happen outside urban areas. Here, bare land is more plentiful, but commutes to jobs, grocery and hardware stores may be longer. Some suburban and rural areas may have fewer nearby options for dining, culture, arts and entertainment than urban areas. However, in urban areas, you may find new construction apartments, townhomes, and even a few single-family homes closer to culture hubs.

Lack of mature landscaping

New landscaping takes years to grow. Landscaping around a home in a new subdivision where earth has been cleared to make way for homes and yards can feel stark and exposed until plants and landscaping features bring life to the property.

More waiting and risk of delays

If you’re looking at new homes that have been completed, this isn’t a factor. But if you’re building a custom home or signing up for a home during the construction phase, it could take several months longer than moving into an existing home. The amount of time will vary by market and builder, so you’ll want to consider budgeting time for potential delays.

Read more: If you’re interested in new construction, read about the types of new homes, the steps to building a custom home, and tips for buying a brand new home.

Benefits of existing homes

Move in-ready

It’s less likely that you’ll encounter surprises that push back the day you can move in once you close. Unless you’re buying a fixer or plan to do extensive remodeling prior to moving in, you’ll be able to move in when you get the keys.

Established neighborhood

One of the pleasures of an established neighborhood is the maturity of the trees and landscaping, not only along the streets and in the parks, but also in your neighbors’ yards.

Lower-priced options

Existing homes tend to be less expensive than new construction. A Zillow analysis shows that the median sales price of an existing US home in fall of 2021 was $354,000 versus $400,000 for a brand new home. Given material shortages and inflation, those differences are likely to persist into the near future.

More location choices

Most new detached single family homes are built outside urban areas. Buying an existing home typically gives you far more options when it comes to where to live.

Fewer decisions

Building a custom home involves a lot of decision-making. This includes everything from the floor plan to interior and exterior finishes and materials. An existing home allows you to focus on the areas that need sprucing up or that you want to customize to reflect your personal style and preferences.

Architectural details and history

Older homes are more likely to have architectural details that would be hard and expensive to replicate. They also sometimes have great stories behind them that you become part of when you move in.

The flip side

Outdated floor plans

Unless a home has been extensively remodeled, you’re unlikely to find modern floor plans. In older homes, the kitchens and bedrooms, even the front rooms, were built for a different era that may not jibe with the kind of space you’re looking for.

Outdated technology and fixtures

Old homes can be extremely outdated when it comes to technology, some even having knob and tube wiring dating from the first half of the 20th century. While it’s possible to upgrade wiring and install smart technology to replace old thermostats and lighting, it’s more costly to undo something and then redo it than to install it when the home is being built.

Energy inefficient

Older homes can be poorly insulated and rely on polluting resources such as oil for heat. 

Potential for more repairs and maintenance

Unexpected repairs to older appliances, roofing and heating systems can have you spending money where you didn’t expect to. 

The post New Construction vs Existing Homes: Which one is better? appeared first on Residence HQ.