Here’s What You Need to Know About Pre-Owned Homes
Many people who are looking for a new home often look at pre-owned homes with their budget in mind, thinking that a used home is similar to a used car in that the asking price decreases if a person has owned and lived in the home before selling it, unlike brand new constructions that can sometimes be too expensive to be considered affordable for a potential owner, even if the mortgage qualification says otherwise.
The issue with this is, a lot of the time, the pre-owned home is not any less expensive than the brand-new home when all factors are considered. While the asking price for a brand-new home might be $300,000 with no hidden fees and all appliances and wires new, a pre-owned home of the same size might be listed at only $250,000. On paper, this seems like it would be an excellent way to save money on a home if the pre-owned home was considered over the new construction. However, this is not always the case.
It’s important to remember that pre-owned homes have been lived in and are usually quite a bit older than a new construction. This means that the utilities have been used, and the home might have seen some difficult times. Even though inspections and appraisals will help determine whether the pre-owned home is worth the savings, the potential buyer should be aware that the asking price and the cost of the home are not necessarily the same.
A pre-owned home might need a lot of work done to make the home habitable, and those repairs and renovations are liable to end up causing the pre-owned home to cost as much or even more than the new construction. It’s also a good idea to take into consideration that even if a pre-owned home appears to be in decent condition, the period for something to go wrong once you’ve moved in is usually much shorter for a pre-owned home than it is for a new construction where everything inside has never been used before.
While there are definitely cases where a pre-owned home ends up being an excellent investment, it’s crucial to be careful when considering your future home. Though qualifying for a mortgage that is affordable may be a challenge, you should also think carefully about how much of a headache your investment might be if you go with a home that seems easier to afford without truly being any less expensive. For more on pre-owned homes, check out this article at RealtyTimes.
Let my team at Keystone Realtors® meet all your real estate needs. I have over 16 years of experience in buying and selling in the Santa Clara and San Mateo County areas, specializing in the high-end, luxury market. Visit our website at https://www.paulphangureh.com/for listings and information. You can contact me at 650-924-2544, or email at [email protected]