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Alias, Home Buyer in Maine

If a new construction house has been on the market for 471 days and is selling for the appraisal price, would it be difficult to sell in a 5-10 years?

Asked by Alias, Maine Sat Apr 7, 2012

If the house has all new appliances and systems now, will it be worth less when it is no longer new construction? If it is so hard to sell when it is new, will it be much harder to sell when it is not new?

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Its hard to say none of us have a crystal ball to predict the future... it could go up and it could go down, we never know how the market is going to go. There could be so many reasons the home is not selling... condition of what’s been put in the house, area, the current owner could be holding out for better offers, may not really want to sell, maybe difficult getting financing to purchase if its a town home/condo or planned community with a larger percentage rented out it would make the home a cash purchase and depending on cost. I'd call, go take a look and see what the property looks like and decide from there what the issue could be, and it could be just a sign of the times not every thing is selling... good luck!
0 votes Thank Flag Link Mon Jul 22, 2013
Hi - Sorry, but agents cannot really answer that question. We just cannot be sure of where the market will be in 5 to 10 years and ease/dificulty in selling is a function of the market.
A few points that might help clarify things for you:

If listed before built, it is not unusual for new construction to have longer days on market. It is difficult to sell something that buyers cannot see. That is in general terms. But my own experience with new construction is that it is difficult to sell before it is built. But the days on market are counted from when iti s listed, not built.

New construction does generally sell at a premium to resale homes. However, a 5 to 10 year old home that has been properly maintained is still a very new home relative to the average home listed. If the home is clean, well maiintained and most importantly, properly priced to the market, it will be an easier sell than homes that are not.
0 votes Thank Flag Link Sun Apr 8, 2012
You may notice that new construction listings, in general, are staying on the market for relatively longer periods of time. This is because there are resale homes readily available for less than it costs to build new. Land sales are similarly slowed by this phenomena. The benefit to new construction is that you can get exactly what you want in terms of lay-out, finishes, amenities, etc. and you are the first one to live in the home - all sparkling new! If that is important to you, you may want to pay the premium price. Hard to sell 5 years from now? Who knows - It will depend on the market, the condition of the home, and price.
0 votes Thank Flag Link Sat Apr 7, 2012
Depends on how much you want to sell the home for in 5-10 years- what kind of return are you looking for. As always, real estate is a local market. With that said the location of the home may be the most important factor.
0 votes Thank Flag Link Sat Apr 7, 2012
If the house was on the market for 471 days before selling, the price was too high at the beginning for the current market of buyers. Appraised prices don't mean that much these days, as appraisals are based on past sales. Was this an already constructed house or a "to be built" package being markets?

Hard to tell what will happen in 10 years. Prices of real estate most likely will be higher than where they are now, but yes, it will be a 10 year old house then. Today is 2012. What do buyers think of a house built in 2002? They generally aren't terribly concerned about the systems at that point, not that old.

Appliances for a 10 year old house? We're only talking about perhaps a $5,000 difference. It "all depends", a famous phrase. Are we talking a $200k house, $300k or $400. .
0 votes Thank Flag Link Sat Apr 7, 2012
Oh for a crystal ball...it really is hard to imagine or predict just what the market or the economy will be like in 5 or 10 years. Because it is so impossible to predict a "down the road" market, this is a tough question to answer. A lot also will depend on the condition of the home at that time and of course the location and pricing. I would imagine that in 10 years, this home would be needing new appliances and possibly new or upgraded systems and without upgrades to kitchen and baths would most likely be considered dated by buyers. Good question, but tough to answer!
0 votes Thank Flag Link Sat Apr 7, 2012
It is the up-keep of the property that determines the value from the time you buy it and the only think that can shake this value is up-keep of the neighborhood.
0 votes Thank Flag Link Sat Apr 7, 2012
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