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If you have any questions or need more detailed information, please feel free to contact me via phone at 301.613.7253 or fill out the form to let us know how we can help with your real estate needs.

Office Location 795 Rockville Pike,
Rockville, MD 20852
Phone: (301) 613-7253
Fax: (301) 424-9290

Buying new construction over an older home?

The choice to buy new over used is usually about custom design or lower overall maintenance costs at the beginning of ownership.  Although the cost of new construction is generally higher than comparable older homes in the immediate short term the maintenance costs are much less in regards to upkeep and utility bills.  This is because the builder often offers warranties on their homes for several years after construction to guarantee their work.  The homes are also constructed with new windows and doors that will likely prevent heat and air conditioning from leaking out of the house as older homes start to wear over time.

With an older home, the upfront costs are generally significantly less for the amount of home you can purchase.  It becomes a trade-off for how much home you can get over a more custom option of a new construction.  Another benefit of an older home is that you essentially know what you are getting.  Previous owners, by law are required to disclose all that they know about the home they lived in over the years.  This pertains to the home, the location, zoning, etc.  With new construction there is often the unknown factor of what it is “really” like to live in that community.  Although construction and mechanics are protected by the builder warranties, sometimes a blank piece of land will be much different that your ideal dream home was envisioned once the home and others around it start to become built up in the area.

All of the above reasons are exactly why you need a Realtor to represent you with the builder.  The builder is looking after their sale and their own interests.  A Realtor will cost you nothing as the builder will often make arrangements to work with your Realtor and pay the commission out of the proceeds of the settlement as with sellers on a previously owned home would pay your Realtor’s commission.

Your Realtor should investigate the lots grade (slope), what it backs up to, how close the neighbors are, what potential resale would be for that location, is there better lot for the model you are choosing, etc.  Then there are all the minute details regarding the actual building of the home.  A representative of your interests is able to negotiate all the fine points of the construction with the builder and keep in constant communication with them on your expectations.  It is a win-win for you to utilize the services of a Realtor and one that has experience working with builders for this type of purchase.

 

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