Not every home buyer considers them self a do-it-yourselfer. Yet buyers of previously owned properties must be, almost by definition. If not, they must at least have the money to pay someone else to repair their purchase. It begs the question: are previously owned homes and fixer-uppers really the bargain they seem to be?
It’s true that pre-owned homes can sometimes be good deals for buyers. The longer that a particular property has been held by an owner that isn’t making money off of it, the better the potential deal, generally speaking.
However, as most buyers know, usually there’s at least one reason why a property has failed to move quickly. It can be a costly mistake when a buyer misjudges whether such a “deal” will still be so after the property has been repaired.
In reality, previously owned properties and fixer-uppers aren’t necessarily the great deals they once were. The disparity between the cost of repairing and refurbishing an older home and the cost of building from scratch has shrunk. Buyers, particularly those who are looking for a primary residence or investment property, have three reasons to purchase a new home in San Diego:
1) Fewer financial unknowns: Most potential owners usually go out of their way to discover “hidden” issues about a house/property of interest. Unfortunately, a home inspector can only see so much.
Often he is simply unable to detect some of those issues that cost the most to fix. This includes the state of the internal frame, the health of supports and joists and what may be lying under the floor or foundation.
It is only when the new owner takes possession that many of these issues come to their full light. Sometimes these hidden problems end up costing hundreds of thousands of dollars to repair.
Purchasing a new house virtually eliminates the element of the “unknown.” Buyers have a greater awareness of (and perhaps were even involved with) the home’s materials and structure. Costs have been anticipated beforehand.
Though there are sometimes extra cost surprises, they tend to be relatively minor. They do not rival the price tag that comes with repairing a broken-down older property.
2) Today’s homes retain their value longer: Modern houses are simply built better than those of decades past. This is especially true in California, a state with some of the strictest and most comprehensive building codes in the US.
Modern houses are more airtight, heat and energy efficient and structurally sound. This means that a house built today depreciates in value more slowly than those built in the 70′s, 80′s and 90′s. Even a modest structure retains its value better than a comparable one of yesteryear.
3) Better technology, materials and building standards in new homes of today: California building codes are quite comprehensive, as already noted. A number of improvements have been made in recent years in how houses are built there.
Additionally, more and more contractors and owners are choosing to build with “smart” technologies. Some of these include solar energy generation, geothermal and radiant heat, computerized security systems, comprehensive sprinkler systems and more.
By contrast, many older houses have inefficient heating, rely solely on expensive electricity and have few (if any) built in safety features. They cost more to live in and even more to retrofit/upgrade.
When it’s time to purchase your first or next home, consider these financial benefits. Previously owned properties aren’t necessarily bargains. Buying a new home in San Diego may not be as costly as you once thought.
Let Shea Real Estate & Investment Group help find your new home in San Diego, CA. For investors, Shea also offers many great real estate development opportunities.
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