"Used" home prices: why pay for an "old" home when NEW ones cost the same? (HOA, appliances)

[seion]

I noticed most existing home prices for a house that is around 2,200 square feet are going for $250K-$270K, while new homes, not even built, in the same area, are selling for the same price (with warranty and builders paying closing costs plus extras). Is it me or people selling their homes have lost their minds? Have the buyers lost theirs too?!

[Corvette Ministries]

With builders cutting costs left and right, newer is not always better, even with the perks mentioned. An old house with solid brass fixtures and oak trim can have value over cookie cutter residences with cheap materials.

[seion]

Originally Posted by Corvette Ministries

With builders cutting costs left and right, newer is not always better, even with the perks mentioned. An old house with solid brass fixtures and oak trim can have value over cookie cutter residences with cheap materials.

In a way maybe, but it has to be solid oak (and well coated with polyurethane) and brass fixtures look so old after so many years; brushed nickel is in and brass seems to be out. And a lot of wood "look" makes the house feel a bit dated, especially in the kitchen. That's what I am seeing lately with these "pre-owned" houses.

[chopchop0]

Block vs frame?

[volk2k]

Originally Posted by seion

I noticed most existing home prices for a house that is around 2,200 square feet are going for $250K-$270K, while new homes, not even built, in the same area, are selling for the same price (with warranty and builders paying closing costs plus extras). Is it me or people selling their homes have lost their minds? Have the buyers lost theirs too?!

Have you actually fully priced out that new home build?

With lot premiums and options, I would say those new home starting prices are probably only 75% - 90% of the final price.

In my experience, I see people end up paying outrageous prices for cookie cutter neighborhoods just so they can have something "new"

Additinally, builders that "pay for closing costs" are probably doing so at a higher rate than a good broker.

Finally, location and development matter... same "area" doesn't mean much unless you give us specific neighborhoods

[seion]

Originally Posted by volk2k

Have you actually fully priced out that new home build?

With lot premiums and options, I would say those new home starting prices are probably only 75% - 90% of the final price.

In my experience, I see people end up paying outrageous prices for cookie cutter neighborhoods just so they can have something "new"

Additinally, builders that "pay for closing costs" are probably doing so at a higher rate than a good broker.

Finally, location and development matter... same "area" doesn't mean much unless you give us specific neighborhoods

But what if we factor that a roof's life is about 30 years and some of these homes were built in the 80s? A new roof may be needed, and that's an easy $15K. The cookie cutter issue is understandable, but a pre-owned 80s-90s house with an outdated kitchen means $5K in new cabinets and another $5K in new appliances to look the same as a new house. White appliances are out and stainless are in, and nicely tiled bathrooms are norm now compared to the small squared tiles of the 80s and 90s or even dreadful all-around fiberglass.

It's starting to look like a bubble again, with pre-owned prices equaling new prices. But you may be right: location, location, location.

[Rabflmom]

Some good reasons to consider a pre-existing home over new build if you choose wisely. .

1. Location
2. Size of lot
3. Previous owner paid for the fence.
4. Previous owner paid for the curtains, blinds, rods, towel racks and toilet paper holders, screened porch/pool, ceiling fans.
5. New builds do not always include refrigerator or washer and dryer and they may come with the prexisting home.
6. Not all new homes come with sod in the back yards, sometimes just the front yard.
7. Landscape will have larger trees and better kinds of shrubs and trees than the builder puts on the lot.
8. Possibly all the builder mistakes are corrected.
9. Probably a better dishwasher, stove,air conditioner, and lights have replaced builder less expensive ones.
10. Won't have to put up with the noise and dirt of new construction on your block.
11. Closets may be upgraded.
12. Previous owner may have upraded garae with shelves etc.
13. Previous owner may have put in a fire pit, outdoor kitchen, larger patio, etc.
14. Previous owner paid for garage door opener
15. Previous owner may have added house security system
16. If house in area where there is no city water, they may have paid for the water systems needed.
17. Or the owner may have already paid to hook up to city water.
18. May not have to paint every room. Builder grade white paint is often flat paint(almost a white wash) that you can't wash .
19. May have upgraded the windows.
20. May have upraded carpets or tile.

[bmw335xi]

Main reason is you are paying a premium for the new house meaning leas square footage and sometimes new construction is built in the edges of communities and finally new houses tend to have baby trees and small lots.

[WithDisp]

Originally Posted by seion

I noticed most existing home prices for a house that is around 2,200 square feet are going for $250K-$270K, while new homes, not even built, in the same area, are selling for the same price (with warranty and builders paying closing costs plus extras). Is it me or people selling their homes have lost their minds? Have the buyers lost theirs too?!

'In the same area' is the vague part here.

Zoned schools and location are generally paramount for most buyers.
Sometimes avoiding an HOA is another factor.

A 2200 Sq Ft where I'm at is way over 300K, and new inventory is non-existent.

[idr591]

Houses are not cars. They do not depreciate when you "drive them off the lot."

Personally, I think nearly everything built since 1990 is crap. Unless you are looking at a VERY high end custom home, new homes have no character, and the neighborhoods are completely cookie cutter and undesirable.

Everyone has their own opinions, but I would never consider a new home, unless it was a high end custom build, and then it would certainly not be the same price as a "used" home.