Avoid hassles of unexpected repairs that may come up in older homes
By Bill Lewis | FOR THE TENNESSEAN • September 19, 2010
Some home buyers dream of purchasing a foreclosure for pennies on the dollar. Others crave the charm and character of an older house. But if you want a blank slate; a place where nobody else has lived before and a decreased risk of unexpected expenses, a newly built home is your best bet.
“Even if the price may be a little higher on the front end, you’ll save money in the long run,” said Bridget Wright Thompson, with the Jones Company.
A previously lived-in house might need unexpected repairs that may not be covered by a warranty. Roofs can develop leaks. Heating and air-conditioning systems don’t last forever. And while foreclosures can be amazing bargains, they’re also a big gamble.
“There are so many nightmares when you go down (the foreclosure) path,” said Thompson. “The people may have taken everything, including the toilets.”
When you buy a newly built house, you don’t face those issues. The roof, the floors and everything in between are all brand-new. And if anything does go wrong, most builders provide a long-term warranty that can cover the cost of repairs for years, said Geoff Hart with Beazer Homes.
“(Our warranty) is almost like thinking of an insurance policy,” Hart said. “It’s just the peace of mind. For the first two years, all major systems are covered. All the way to the 10th year, all structural or foundation issues” are covered.
There are tradeoffs, of course. There are far more existing homes on the market than new homes, so if you’re buying new you don’t have as great a selection. And most new homes are in new developments, which means you’re giving up the advantages and attractions of a more established neighborhood with mature trees, unique character and where property values have risen over the years.
And the vast majority of home sales are of existing houses. National Association of Realtors Chief Economist Lawrence Yun predicted that existing home sales will reach 5 million units this year. New homes, meanwhile, were selling at an annual rate of 276,000 units in July, the latest month for which figures were available.
Bill Lewis covers real estate for The Tennessean. He can be reached at 615-262-5862 or wlewis77229@comcast.net.
http://www.tennessean.com/article/20100919/FEATURES0303/9190313/New+homes+are+a+safer+bet