"We're hearing about more buyers every day who say they always dreamed of a new home, but now are looking at 10- or 20-year-old resale homes. Likewise, people who fantasized about the charm of an older home are choosing new construction instead," said Linda Edwards of Kaufman and Broad. "Across the board, buyers no longer limit themselves to one or the other because in a hot housing market it's more important to find a home you love - old or new."
If you're in the market for a home and don't know the benefits and drawbacks of new homes versus resale, Kaufman and Broad (NYSE:KBH) suggests that you consider the following:
Character and charm. Many homebuyers look at older homes, trying to find the charm they recall from grandma's built-in curio shelves or arched doorways. What they often find instead is avocado shag carpeting, yellow appliances, and homes in need of repair.
If you enjoy doing work around the house and don't mind the gradual transformation from the previous owners' leftovers to your dream home, then you should seriously consider an older home. If you expect to walk in the first day and have your home ready for entertaining, you'll be wise to consider a new home that allows you the ability to customize various items to suit your needs. The interior decor of your home will give it the personality you want it to have - whether it's sleek and modern or full of old-fashioned character. The more important question to consider is whether you want the instant gratification of a new home or the slow transformation of a resale home.
Nearby development. When purchasing an older home, you typically have a good sense of what the neighborhood is like. In new home communities, you may not know what else will be developed in the area until after you have purchased your home. In either case, it's a good idea to be involved in your local government to keep abreast of upcoming developments or changes in current zoning ordinances that may affect your property.
Maintenance and operations. Data from the U.S. Census Bureau's 1991 American Housing Survey suggests that operating costs per house are lowest for brand new homes. New products are less likely to need repair than older ones: a brand new roof is less likely to leak than a 20-year-old roof. This doesn't mean that a new home won't require regular maintenance - all homes do - but the maintenance costs are likely to be less expensive in a new home. Another factor to consider is that new homes have the most up-to-date standards for energy efficiency, which could mean lower utility costs.
Exterior design and landscaping. Many builders offer front- and back-yard landscaping or give the homebuyer the option to do their own landscaping. Either way, you are not likely to look in the back yard of a new home and find an old oak tree perfect for climbing. Trees and shrubs take time to mature and an older neighborhood will have more fully developed landscaping.
Many cities now place restrictions on landscaping as well as paint colors to ensure neighborhood compatibility. If you've always wanted a pink house, check city codes before purchasing anywhere.
Warranty. Resale homebuyers often purchase a one-year home warranty, which covers appliances and some major systems. New homes typically come with a more complete warranty since potential problems may take time to become evident. As an example, Kaufman and Broad homes come with a 10-year New Home Limited Warranty, which covers structural integrity for 10 years, major systems for two years and appliances for the first year. Knowing that your builder will be available to assist you if you need help often provides an added sense of security.
Resale value. It's never too soon to think about the resale value of an investment as large as a home. Buying a house in a brand new community may seem riskier than purchasing a house in an established neighborhood, but in reality, any increase in home value depends on the same factors for new homes as for resale homes. Consider the quality of the neighborhood and its school district, growth in the local housing market and the state of the overall economy.
For more assistance in the homebuying process, check out the "Homebuying Tips' section of Kaufman and Broad's Web site at www.kbhome.com.
Kaufman and Broad Home Corporation is one of America's premier homebuilders, with operating divisions in Arizona, California, Colorado, Nevada, New Mexico and Texas. Kaufman & Broad S.A., the Company's majority-owned subsidiary, is one of the largest homebuilders in France. In 1999, the Company delivered homes to 22,460 families in the U.S. and in France. It also operates a full-service mortgage company for the convenience of its buyers. Founded in 1957, Kaufman and Broad is a Fortune 500 Company listed on the New York Stock Exchange under the ticker symbol "KBH".
For More Information Contact:
Kate Mulhearn
(310) 231-4015
kmulhearn@kbhome.com