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Saturday, 16 July 2016

Deciding Between Buying a New or Pre-owned Home

Deciding Between Buying a New or Pre-owned Home

The experience of choosing and buying a home can be very exciting and scary at the same time. Weighing between the advantages and disadvantages of buying a complete new or pre-owned home is a tedious task. If you are lucky, you may find a home that suits you best, or you may end up moving around several homes before settling on the right one that makes you happy in years to come. You have every right to choose the right one before settling, and here are a few of the advantages and disadvantages of buying new or pre-owned home.

a) Warranty:

New Home

Advantages:

Warranty for new home starts running from the date of issuance of key collection. Most of the time the warranties are applied for 2 years, for every item in your home except appliances if any. Warranty included items built by the developer such as wiring, piping, walls, flooring, tiles, doors, cabinets and etc. It is always advisable to check thoroughly for any defected items and report to the developer for rectification before moving in. If appliances were supplied part of the home package, make sure you have all the warranty cards stored in case of any items broke. Different appliances offering different warranty packages; the electrical board of a washing machine may have warranty coverage of 1 year, and the motor unit for 2 years, make sure you read the warranty cards carefully.

Disadvantages:

As all warranty goes, it usually does not cover improper usage, wear & tear or modifications. Make sure you obtained consent from developer before proceeding for any home remodeling.

Pre-owned Home

Advantages:

During negotiation a deal between seller and buyer, the buyer has the opportunity to thoroughly inspect the house for any defect and if found, can negotiate for rectification before proceeding. To further safe guard the buyer, a warranty period could be discussed between buyer and seller during transaction period before key possession by buyer. Items to consider could be internal wall piping, flooring, etc.

Disadvantages:

The seller could be covering imperfection of the home; for example cosmetically covering of mold condition due to water seepage from either internal wall piping or external source.

b) Financial:

New Home

Advantages:

Buying a complete new unit from developer saves you money in the form of free items bundled with the home. Developer may attract buyers by offering freebies such as free lawyer fees or appliances. Also during construction period you have the opportunity to save money.

Disadvantages:

If your new home from developer is empty without appliances and cabinets from developer, you will need to consider the following: grills, appliances, cabinetry, alarm system, furniture and so on.

Pre-owned Home

Advantages:

Main advantage of buying a pre-owned home is the home either comes fully or partly furnished with grills, major appliances and cabinetry installed. The seller may decide to include the items in the sales contract. Major advantage if you are looking for move in condition home.

Disadvantages:

The initial cost of down payment, lawyer and other fees when added up could eat up your entire life saving. Some of the items you inherited from previous owner could be not in satisfactory condition which requires more maintenance.

Whichever your decision; it is upmost important to take your time and weigh the advantages and disadvantages either new or pre-owned home.