Home Buying in Tennessee>Question Details

Donna, Home Buyer in Nashville, TN

Resell in 3-5 yrs - which is better? Older home in Franklin established neighborhood (nice yard but older

Asked by Donna, Nashville, TN Mon May 26, 2008

house needing work) OR Newer home in subdivision in Nashville (no yard but nicer home) such as Lenox Village?

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Donna: Franklin has continued to see a low supply of well-priced homes on the market and even a lower days on market for those homes. Areas like Lenox Village (as well as neighboring new neighborhoods like Apple Valley, Cane Ridge, Sugar Valley, et.al.) are still seeing momentum in the movement of homes, however, it has been slower and prices have no escalated significantly in comparison. You may want to have your REALTOR conduct a market momentum analysis for you to inform you of all your area's past and current economic situations. This is not a comparative market analysis; so, don't confuse the two. Wherever you land, remember #1 is....be happy where you live and let the investment "pay off" through owning the perfect home for your lifestyle. If it's old Franklin that gives you the warm fuzzies, go for it. If it's Lenox Village, go for it. Ultimately, the Nashville-area is great overall; so, you may find yourself in a win-win wherever you land.
1 vote Thank Flag Link Mon May 26, 2008
It's impossible to tell the future. Many things can affect the market so if this is your home you are looking at selling I'd advise older home - make the improvements and enjoy the yard. If you want to sell in the future you will need to look at what is happening at that time.
1 vote Thank Flag Link Mon May 26, 2008
Jed Lane, Real Estate Pro in San Francisco, CA
MVP'08
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Donna-Some things to keep in mind when looking at an older home v.s. a newer one. The age of all the mechanicals in the house in question. Also look at the roof and how many times it has already been covered before you'll need a complete tear off. Look at whether the floors are level or sloping and whether the house is out dated in regards to floor space and functionality. Generally, in a newer house, you are getting all new appliances and mechanicals and probably a builder's warranty. Unfortunately. landscaping usually suffers and is minimal. On older homes, the before mentioned items if not already replaced may need servicing and or replacement, but the landscaping may be more established. Price should reflect condition and projected replacement of any of the major household components. Good Luck!
0 votes Thank Flag Link Tue May 27, 2008
Hi Donna.
That is a great question. As has already been mentioned, it is very difficult to predict the future. I would say that the great thing about an older house that needs a little work is that if you can put a little sweat equity into it doing minor updates, you may be able to do just those one or two extra things that aren't available in the newer homes that gives your home added charm or interest from buyers down the road. You'll find that the newer construction homes in a neighborhood usually have almost the exact same amenities. When they are competing against each other in resale, it is difficult for one to stand out against the other. Check with a realtor also to see what are the most common characteristics for a home in the price range of the home you're considering... Check your budget and see if there are things that are missing that you could add to differentiate your home without over-remodeling. A realtor should also be able to help you identify some of those projects too, but as a general rule, as I'm sure you know, bathrooms and kitchens are of utmost importance in being updated. However, you don't necessarily have to spend $10k+ for kitchen or bathroom projects. There are tons of things that can be done to add impact for lower costs. In the end, today's buyers are looking to buy the most move in ready home for them for the best value. In 3-5 years, I'm sure that will still be the plan of buyers. If your home can meet specifics of their criteria that others can't, you have a better opportunity at resale. I would only do projects like that on a newer home if you bought it significantly, and I mean significantly, under market value. Otherwise, buyers will likely want to buy your home, but will want to buy it for the same price as the other homes in that subdivision (without those added items or consideration to what you invested.) Either way you go, buying at a good value will be the recipe to protect your investment in the future.
Web Reference: http://homenashvilletn.com
0 votes Thank Flag Link Tue May 27, 2008
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