New home prices compared to resale (Buckeye, Litchfield Park: real estate, how much, landscaping)

[foma]

I have a question. I wonder if there is a "term" or technical word for what I am going to describe: Out in Buckeye, a built (used) home is probably ranging around $200-220K. Comparable new homes are selling for about $160-180K. Where is the logic in that? Location is in same general vicinity - plus, we're talking about Buckeye here - rural, way out in nowhere-ville.

I'm not a homebuyer (we're looking though) but this "logic" doesn't make sense to me. Can somebody who is "knowledgeable" in the real estate field explain this concept to me or am I just not "comparing correctly"?

[JasonS]

Originally Posted by foma

I have a question. I wonder if there is a "term" or technical word for what I am going to describe: Out in Buckeye, a built (used) home is probably ranging around $200-220K. Comparable new homes are selling for about $160-180K. Where is the logic in that? Location is in same general vicinity - plus, we're talking about Buckeye here - rural, way out in nowhere-ville.

I'm not a homebuyer (we're looking though) but this "logic" doesn't make sense to me. Can somebody who is "knowledgeable" in the real estate field explain this concept to me or am I just not "comparing correctly"?

That is base price for the new home,those upgrades are expensive and they add up fast,trust me.

[Stumblina]

Originally Posted by JasonS

That is base price for the new home,those upgrades are expensive and they add up fast,trust me.

That used to be true, but builders are giving away upgrades like crazy! And for all those who "doubt" that the market will continue to drop, all I can say is you're obviously not trying to sell your home. The prices of homes have dropped dramatically in every state across the country. And they are going to continue to drop. No matter how much you lower the price, every buyer out there will offer you an even lower price. Yes, be prepared, because it is happening and will continue to happen. Positive thinking is a good thing, but you have to be realistic.

[arun196]

Originally Posted by foma

I have a question. I wonder if there is a "term" or technical word for what I am going to describe: Out in Buckeye, a built (used) home is probably ranging around $200-220K. Comparable new homes are selling for about $160-180K. Where is the logic in that? Location is in same general vicinity - plus, we're talking about Buckeye here - rural, way out in nowhere-ville.

I'm not a homebuyer (we're looking though) but this "logic" doesn't make sense to me. Can somebody who is "knowledgeable" in the real estate field explain this concept to me or am I just not "comparing correctly"?

Yes. You can find new homes less than old homes mostly where prices have dropped significantly and many builders in an area. My case , I first went with new homes, chose the house I liked, calculated the house price including upgrades. I gave that price to my realtor to find the used home for lesser than that. He couldnot find one. Till then, he tried to convince me into buying old homes.

[foma]

I totally get what you're saying. People are trying to convince me that the upgrades "add up" and that's why they are more expensive than the new homes but I've noticed a.) a lot of builders are tacking on free upgrades to the low prices and b.) some of the old homes I've seen aren't that upgraded. Like, I don't see the "worth" as compared to just purchasing new and picking your own upgrades.

I really like Litchfield Park and area near exit #126. We're crossing our fingers that we can get a home for around $200K there (although unlikely) ... here's to hoping!

[artvandelay]

What a lot of excited new-home buyers forget, is that even an upgraded home is not a finished product. Consider all the costs to finish a new home, that are already present and working in a "used" home. Granted some of these do get thrown in from some builders:

Blinds and curtains
Ceiling fans
landscaping/pool (sometimes given by builder)
New decor to match house
Garage openers
Alarm systems
Paint jobs

These costs can add up to several thousand dollars. I've always, just my opinion, thought a recently built home (within 5 yrs), which has already been finished, is a better value than brand new homes. But, depending on the level of discounts/upgrades from the buyer, that could make it a better deal for you to finish out of your own pocket.

[JasonS]

I bought a new home last month, recieved over 35k in incentives plus a free pool(basic 17k pool), my final price was 64k over the base price. So without incentives 95k in upgrades plus pool. I also upgraded the pool by 20k and that is not included in my 95k number. And my house isnt anywhere near fully upgraded.

[foma]

I definitely see your point but most of the "used" homes I've seen I'd change the majority of the stuff in it: the blinds, paint, fans and of course you'd buy your own decor and accents. Now, I can't argue with you about landscaped homes - I'm always impressed with a nicely landscaped home - but the ones I've seen have barren backyards and barely anything in the front!! Now that I think about it, the point you make does make sense but the homes I've seen, these things are not worth their weight in gold.

[sierraAZ]

Originally Posted by foma

have barren backyards and barely anything in the front

Now, now... Take some courses in RE-ish! That's called "the backyard is a clean slate for YOU to design!"

[foma]

lol ... then I guess they won't mind if I offer at 10K less for them personal designs to my new backyard!