Home Buying in 55379>Question Details

Jsr2010, Home Buyer in 55379

Which is good option ? Buying a new home vs. Existing home (in shakopee, MN)

Asked by Jsr2010, 55379 Thu Jan 28, 2010

I am planning to buy a single family home (2005 built, 2500 sqft) for 255K in Shakopee, MN. Is this a good move, compared to new houses that are available for little over 300K in that area ? thanks in advance, Sri.

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There have been many good answers. It comes down to if the extra things that make the house that much more YOU is worth the ~$50K then yes it might be worth it. You also get the state warranty with a new construction home: 2 years on all mechanical/electrical/plumbing systems and 10 years on all structural defects. Many of my builders are able to build homes for much less than existing because building prices are down much more than from 2005.

Let me know if you would like a referral to a good builder.
0 votes Thank Flag Link Thu Jan 28, 2010
Ask your realtor to help you make a decision. It all depends on what your needs and goals are. You have to consider the condition, how much area is finished vs the finishing touches a new home might require. For example, I bought a new home in Maplewood not long ago. The lawn was part of the price, but it included one small tree for a huge lot. I ended up having to landscape, to put in a lawn in the part of the lot that was not included in the sod allowance. I didn't mind too much because we wanted to put in putting green, so that situation suited us. Someone else might not want that. We also left the basement unfinished; if you or your family wants a totally finished home, the existing one might be better and the extra $50000 you would save on purchase price would go a long way in putting in improvements or specifics you would love to have. Remember, a real estate agent costs you nothing and saves you everything as well as providing a wealth of information and insight. Liz, 612-986-4105, Real estate AGENT, SFR, and mortgage specialist.
0 votes Thank Flag Link Thu Jan 28, 2010
Hi Sri,

it really depends on what's important to you. A new house probably will have newer appliances and mechanicals (Furnace, H2O Heater, etc) but may not be close to anything and may not have any mature trees in the neighborhood. An older (existing) home may be more convenient, have more charm, more mature landscaping but may have older appliances, mechanicals, etc.

Be careful with comparing prices with new construction to existing homes. The list price for new construction homes may not include the landscaping needed such as grass (sod), shrubs, trees, etc. It may also not have a finished basement vs others that may. I would also look at the smaller things such as window treatments (blinds, curtains, etc.). If an existing home already has these and the new home doesn't, adding these basic items can add up to a significant amount.

I hope this helps. It's best if you have a real estate agent to represent you to make sure you're aware of all of these things. Let me know if I can help.
0 votes Thank Flag Link Thu Jan 28, 2010
When we were shopping for a home a two years ago, we asked the same question. We ended up deciding on going the new home route, because for the same money, we could get what we really wanted, and it would be brand new.

What you will have to way is what you get for your money on the existing home versus new home, and which one will benefit you the most. Don't worry about which one is a good move for future value, instead, decide which one best fits your budget and current/futurre needs.
0 votes Thank Flag Link Thu Jan 28, 2010
It depends on what you want, and the current values. Have your agent work up a CMA for both scenarios, and see what make more sense. New homes have more upfront cost's some of the time. Window coverings,sod, landscaping, etc. But all the appliances are new, and the major mechanicals are also new. Good luck.
0 votes Thank Flag Link Thu Jan 28, 2010
That all depends on the home, your Realtor should be providing you with a market analysis of each home specifically so that you can make an informed decision based on which is the better buy. You will need to consider what is happening in that market and which home will suit you and your needs going forward.
Web Reference: http://RachelLuckow.com
0 votes Thank Flag Link Thu Jan 28, 2010
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