As you begin to shop for your new home, you may be faced with the decision of whether to buy a newly constructed home or an older, updated home. Understanding the key differences between the two, and where the value lies in each, is important when deciding which property is right for you.
• A good first step is to think about what your investment goals are with the property. People buy homes for a variety of reasons, so it’s important that you don’t over invest or under invest in the home.
• If there are features of the home that you are not happy with, be sure to get a professional opinion on the cost of the repair or remodel, so that you can factor that in prior to deciding whether the home is right for you.
• Kitchens and bathrooms typically hold the most value for both homebuyers and real estate investors. Consider the condition of these rooms and what updates, if any, need to be done to satisfy your needs.
• In the end, you want your home to be a place you want to live. Make sure that you factor in the cost of any important upgrades you will make into the actual price of the home, so that you can comfortably afford the home in the condition you want enjoy it.
Videos are for informational purposes only and represent the opinions of the speakers. Chase does not warrant the completeness, timeliness or accuracy of the content.
Gina: It’s important when considering remodeling or construction of your home, that you’re thinking of your long-term investment goals for the property. We always want to preserve our investment in our homes. For most of us, buying a home will be the largest investment that we will make in a lifetime. So ensuring that you don’t over invest or under invest is very important.
Chuck / Henrietta: Do you want a home that’s new construction, like this home is? Or do you want to walk into a home where you might have to do some work? Do you have the budget in order to do the possible upgrades that you want?
Laura / David: So our house was built in 1915, a lot of the original bones are here. A lot of things have been changed over time. The kitchen was an addition before we moved in, so you can tell that that’s of a different quality than the original 1915 house. We decided to do our best to build a good house from the foundation.
Chris: I think one thing that people underestimate a lot when they go to purchase a home, is that if it does have certain flaws, they think they can get these easy repairs when they purchase it. But they don’t take into account the cost that it’s going to take to do that. You really need to take the time and make sure you have the proper contractors and inspectors to come by and, you know, really do a good full report for you on that house, so you know what you’re getting in to, not only the work that needs to get done, but the cost that’s going to be associated with doing that.
Gina: We find in a resale situation that people often don’t have a lot of imagination. So the property needs to be done, if you will, interior and exterior.
Chuck / Henrietta: You see a lot of TV shows now where they walk in and, “Oh my God they hate the wall color and I hate that”. It’s all-cosmetic. Look at the bones. This house was all white when you walk in, because that’s what the developer puts in. Well, we saw the potential and we looked around and we had a professional come in and tell us what colors would look good in this home and we had it painted before we moved in.
Laura / David: You learn things the first time around. Everyone always hangs out in the kitchen, no matter how small it is. So we built everything around the kitchen. The doors that open out onto the deck, and we were right about that part.
Gina: The key rooms that are almost always considered the highest return on your investment in construction are going to be your kitchen and your bathrooms. Typically a ninety-five percent return on your investment, if they are done tastefully and they are done to proper local building codes. It’s always a good investment. Those two room specifically.
Laura / David: You know when you want to take a project to build something. You want to make it a place where you want to live.