Home Buying in Phoenix>Question Details

Trulia Phoen…, Home Buyer in Phoenix, AZ

Which is the most cost-effective: maintaining a pricier new build home or refurbishing and maintaining a cheaper older home?

Asked by Trulia Phoenix, Phoenix, AZ Mon Feb 18, 2013

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John Lesieutre’s answer
A new home will cost you more up front, but should pay off in the long run. You have new home warranties, a community that should have better overall comps versus an older community where not all homes are refurbished. Also factor in the cost benefits of newer homes with better energy savings due to more efficient HVAC, insulation in walls and roof, and appliances.

John Lesieutre
Red Manor Realty
1 vote Thank Flag Link Mon Feb 18, 2013
Here's the infamous: "It depends."

New builds *usually* come with a one year floor to ceiling warranty, 2 year appliances warranty, and 10 year construction defect warranty. It's an appealing option - however, everything in a new build is at the beginning of it's lifespan - so it's almost a given that it won't break down in the near future.

Similarly, in refurbishing a older home, if you decide to get brand new appliances, roofing, carpeting, and such - they too will be at the beginning of their lifespan and last their natural lifespan.

Therefore, it depends on the condition of the old house.

Cindy Sun
Keller Williams Realty Southwest
Cell: 702-825-2555
Web Reference: http://www.cindysun.com
0 votes Thank Flag Link Mon Feb 18, 2013
That question Trulia is impossible to answer. One does not have a crystal ball to know what may happen in the future.

A newer home is generally more energy efficient with a lower electricity bill.

An established home has yard with trees and scrubs that will help keep your surrounding to the property cooler as well.

I guess the question is what is the cost for both and how much would it take to refurbish your existing vs purchasing new.

What about the neighborhoods, schools, parks, etc...

Debbie Nieman
Keller Williams Sonoran Living

0 votes Thank Flag Link Sat Feb 23, 2013
It's almost impossible to answer your question because you did not state your goal. Cost effective in what terms - utility bills or resale value? When you say "maintain", what do you mean? If your goal is property appreciation, that must be evaluated on a case-by-case basis.

Why don't you contact one of the agents here for an analysis based on your specific concern?
0 votes Thank Flag Link Tue Feb 19, 2013
I believe this is based on a case by case basis of the older home in question. This is due to some homeowners maintaining homes better than others which will greatly affect the cost of maintaining the older home. A homeowner can purchase a home warranty for the older home as long as the inspection doesn't disqualify some of the items for being in poor condition. I will not debate that the resale home warranty is not on the level of a new home warranty though. It all boils down to the buyers interest. I don't think that the thought of future maintenance typically influences a buyer from purchasing a new or older home. I think it's based on price, location, and time constraints.
0 votes Thank Flag Link Tue Feb 19, 2013
Buying at the right price, an older home is the way to go.
0 votes Thank Flag Link Tue Feb 19, 2013
The condition of resale homes here in the Phoenix metro market varies. Some homes need a lot of work and others are move in ready.
0 votes Thank Flag Link Mon Feb 18, 2013
It depends!! This is such a subjective question that can only actually be answered when you have identified properties.

In Phoenix some of the older properties are in great locations versus buying new construction and commuting from a more remote area.

Pools are another big factor in this market, we can buy resale for 50 cents on the dollar.

Landscaping can be thousands.

New builds are sharp, clean, new and efficient.

So many factors to consider on the new versus resale discussion.
0 votes Thank Flag Link Mon Feb 18, 2013
Builders are popping up all over the Phoenix Valley. Cost vs. Benefit will have to be determined by you, but right now there are a lot of home buyers out there that cannot find what they are looking for in the price range that they want. Then, when they visit a new home builder, they find they can get what they want for the right price. Builders were able to scoop up land and foreclosure prices. This may allow them to build and sell homes at very affordable prices and still make a huge profit. There are still great bargains out there, if you can find them, on the resale market, but short sales and foreclosures are hard to come by. There is very little inventory on the market. Find a trusted Real Estate Agent and this will open up worlds of information. If you plan to use financing to purchase a home, find a trusted mortgage professional and that will help you crunch numbers. I will go back to the Cost vs. Benefit will have to be determined by you and no one else.
0 votes Thank Flag Link Mon Feb 18, 2013
A new build home will have less needed repairs and maintenance than an older home. You might pay a premium for a new build home but in the long run you will pay less in maintenance costs. I hope this helps...

Sean Heideman, Broker
Position Realty
Office: 480213-5251
Web: http://www.PositionRealty.com
0 votes Thank Flag Link Mon Feb 18, 2013
Great question Trulia! Ill agree with Korene. I've helped a few clients purchase new homes and they can be comparable out the gate/ every home eventually needs new Appliance, a new roof, a new air conditioner, a fresh coat of paint. There are pros and cons to both.
0 votes Thank Flag Link Mon Feb 18, 2013
That would depend on what you mean by cost-effective. I remodeled an older home a few years ago. What would you be doing? It is amazing how much savings you can generate with some insulation, triple paned windows, insulated doors, and some solar panels. The best advice I can give you is to work with your loan officer and a licensed neighborhood realtor, then find a licensed and reputable contractor. LOCATION, LOCATION, LOCATION. Then get serious about remodeling. a house becomes a home when you make it yours. I am a Mortgage Banker in metro Phoenix, AZ. I lend in both Arizona and California where I will be pleased to help you. If you or someone you know is looking for financing options, please feel free to contact me or pass along my information. 623-340-0934 Korene Clopine-Seaman NMLS # 218520 KLCSLoanTeam.com We are Direct Lenders, WE CLOSE LOANS!
0 votes Thank Flag Link Mon Feb 18, 2013
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