Buying Your Home

RE/MAX Real Estate FAQ - Buying Your Home, Working With A Real Estate Agent

Buying Your Home - Questions and Answers
'Appraisals and Market Value'

What is the return on new versus previously owned homes?
What's a house worth?
How do you determine the value of a troubled property?
What standards do appraisers use to estimate value?
Can I find out the value of a home through the Internet?
What is the difference between list price, sale price, and appraised value?
Contrast list price, sale price, assessed value, and appraised value.
Where do I get information on housing market stats and trends?
Will a neighbor problem reduce the value of my property?

What is the return on new versus previously owned homes?

There is no single correct answer to this question, because in the end it depends on the needs and taste of the individual buyer. Generally speaking, however, new construction will be marked with higher sales cost (when we compare square footage) and initially at least, slower appreciation.

New home buyers would argue that the energy savings of new efficient mechanical systems, improved insulation methods, thermally efficient doors and windows coupled with near zero need for repairs in the short term, more than make up for higher initial cost and lackluster appreciation. Buyers of existing homes, on the other hand, contend that they’re able to see the complete package, including landscaping, and the way their neighbors take care of their properties, not to mention the character and quality of craftsmanship that may have gone into their older home.

In the end, as we said, it’s a matter of preference. No single advantage or disadvantage out weighs another to give either the distinct edge. In the short term, however, new home buyers are often disappointed that they can’t sell their home for more appreciated value. They often lose sight of the fact they have had to spend very little in maintenance and upkeep, while the new owners of their now ‘used’ home will spend far more.

What's a house worth?