The decision to buy a pre-existing home or to build a custom-home can be as challenging as deciding on an area or community. In many cases older homes are being offered for sale at great values because the owner purchased the land for much less than current market price and built at far less expense.
In more desirable communities, such as Ocean Ridge Plantation, there are relatively few homes to choose from and the demand for pre-existing homes has kept the existing home market relatively strong. Nonetheless, I have encountered several existing land owners that have expressed an interest in existing homes because they feel they can get more for their money, enjoy the area sooner, and avoid the sometimes arduous process of building.
Some owners are planning to hold the land for a few years, buy a pre-existing home, and sell their homesite when the market rebounds. In some cases land owners have indicated that the may build down the road on the homesite they already own and use the equity from the home they just bought to subsidize the cost of a home in a few years. Naturally, they are anticipating that by buying in the down market they will see appreciation as the real estate market rebounds.
All of these are good scenarios, but I feel it is important to highlight two challenges I’ve faced with my clients when exploring existing homes.
Changing Design Trends
The current trends for home design seem to revolve around practical space that is open, airy and focused on entertaining. Open floor plans, high volume ceilings and outdoor living areas have become a requisite over the last 2-3 years, which is a great fit for the climate and lifestyle in North Carolina. Unfortunately, many older homes don’t offer these popular floor plans and new owners are asked to remodel or go without.
Someones Headache
The most apparent problem with an older home is the maintenance of a new home. I advise my buyers to request a home warranty and my home sellers to offer one. The average American homeowner owns a home for 7 years, which coincides with replacement and maintenance of some major appliances. If you are looking at a pre-existing home you may be purchasing someones headache.
While buying an existing home can save money based on the sale price, the cost to update and repair may offset those savings considerably. Also, the sacrifices to design and lifestyle maybe more than many families are willing to make.
Filed under: Brunswick County Real Estate, building homes, Buying home versus Building, coastal real estate, nc retirement communities, north carolina, Ocean Ridge Plantation homes
