Important Things To Consider With New And Existing Homes

Buying a brand new home as a first time home buyer is an attractive proposition for most; you get to move into a completely new living space with brand new amenities and don't have to worry about maintenance and renovations for at least the first year.

Nevertheless, brand new properties are more expensive than existing ones and you're not always sure what awaits you in the new neighborhood you will be living in.

Understanding the benefits and drawbacks of each scenario can help you make the best decision about your new home purchase; consider the following important points as you get started on the home buying process:

1. How much extra are you willing to pay for a new home? A brand new home is priced at a premium because of the 'newness' factor; you'll be the first person to use the bathroom and kitchen appliances, will be walking into freshly carpeted rooms, and making the most of the freshly painted walls.

2. Does resale value matter to you? A brand new home typically appreciates faster than existing homes, explains author Ilyce Glink of the book '100 Questions Every First-Time Home Buyer Should Ask'. If you are planning on selling your home in the very near future, a brand new home may have a higher market value shortly after you move in, making it easier to sell the home for a profit.

3. Can you easily adapt to a new neighborhood? Many new home constructions move at a very fast rate and as one of the first homeowners in the area - knowing what the neighborhood is like wont happen unless you get to meet more people in your new environment. If you have family consisting of smaller children or elderly living with you, it can be great to factor in safety and security by finding out your options as far as making your property safe.

4. Do you want to invest time and money to renovate a home? Existing homes can appreciate tremendously in value if you have the time and resources to invest in renovations and maintenance. If you're looking for a long-term investment that can generate a high profit in a short period of time, buying a 'fixer upper' may be your best home buying strategy.

5. Which do you prefer, a primary residence or an investment? Many younger MN first time home buyers are looking for investment properties that they can fix up and sell quickly to turn a profit. Mature home buyers are more likely to be in the market for a primary residence since they want to settle down and establish themselves in the neighborhood. Identify your goals beforehand and decide what you think will give you more benefits.

Deciding whether to buy a new or existing home will largely depend on your short and long-term goals, and the amount of money you are willing or able to spend right away. Consider all of the above questions when you're deciding between the two options so you can make the best investment with your resources.