My answer a few years ago would be to buy the exsisting home. How ever being a Realtor in Rochester for 30+ years I have seen many changes in the market over the years. The builders are building for what I call a gallon of milk and a loaf of bread. Because of the supply of many exsisting resales listings, built in the last boom. Over stock of approved building lots. All with taxes and many mortgaged. And contractors and subs, roofers, framers,ect looking for work. Builders have lowered their profit margins to stay alive.It is a great time to invest in a home purchase. I would make sure you have looked at all the exsisting supply. Especially if you would be fininishing basements, patios,decks, inground pools. It may be better to buy the exsisting. Also do not count on any on the future values to make your desission. You can go to my web bobkirbysells.com to find all homes in the Rochester market. I just sold a 5 year old home for $259,900.00 that had $73,000.00 in upgrades. To replace this home would well over $330,000.00. If you are non contingent and ready to purchase.You well score well either way !

Thanks to both Joel and Barbara.
Both the old and new are by the same builders. You can't change the color in the new house (White is the default). Carpets and flooring are basically the same with the existing (8 years old house). In fact, i am getting 42" cabinets for the kitchen and the existing home only has a 36" cabinets. Except that, the existing house has a deck (4K), bay window (2k) and landscaping (not much) and window treatment (1K). Totally about 7K worth of stuff that are in the existing house that will not be in the new house. I knew we don't have a crystal ball. However, let say that I buy a house for 250K today. Would I be able to sell it for the same price at least in 5 years? I knew in Rochester, NY the increase in price would only be around 2 to 3% per year. Any advice would be helpful.

Thanks,
FG

You have to weigh out the pros and cons of both properties. With a new house you will get to pick all of the flooring, the cabinets, the formica. the color of all of the walls, the color of the house, any additional things that might not be in the existing house, etc. Everything will be new and have a builders guarantee. The home that is 8 years old will need some updating. The flooring will probably be worn and will need to be replaced. The kitchen appliances, hot water heater, washer/dryer, roof, etc. will all be 8 years old and will not last as long as if you bought a new house. In the long run that might all add up to the diiferences in price before you know it. Good Luck with the purchase of a home.

There's nothing like a new house.However, check the builder out very carefully.Many builders are just hanging on in this market.Second if it's close and you like the older house,make a really low offer and see what happens.It is a buyers market.