Buying Orlando homes can be scary, especially for first-time buyers. One of the things that makes it scary is that the home buyers have to make a lot of decisions.
Both first-time home buyers and veteran buyers have to make decisions about whether to buy new or pre-owned Orlando homes. Which is right for you? Well, that depends on your particular situation, but knowing some of the differences between the two will help you make the best decision.
Home Warranties: New Homes vs. Pre-Owned Homes
Home warranties vary, but essentially cover mechanical breakdowns, such as furnace failures and clogged pipes, not usually covered by home insurance.
· New Homes: For new homes, the warranty begins from the moment you close the deal. Normally, appliances have a years’ warranty, which can be extended. As well, the builder’s warranty covers things such as structural or roofing systems. However, new home warranties are precise about what they cover. For instance, if you have a bunch of kids and a couple of animals, you’ll have a hard time saying the carpet should be covered if it starts pulling up.
· Pre-Owned Homes: With pre-owned homes, you have the option to negotiate on the warranty and what it covers. It could cover appliances, the air conditioning system, dishwasher or any home component. However, if you end up with a shady seller who cosmetically covered up mold (for instance) and you don’t know there’s a mold problem, the warranty may not cover it. Note: this is one of the reasons I always say, “Get a home inspection before buying.”
Out of Pocket Costs: New Homes vs. Pre-Owned Homes
· New Homes: Developers often offer home buying incentives to close the deal. In slow markets, they may add bonus cash incentives, upgrades or other things to entice you. However, if the market picks up, developers may reduce those incentives. Rather than offering you a dishwasher and other appliances for free, developers may charge you a premium for them. Another big out of pocket expense to keep in mind is landscaping. It’s an expensive proposition today for the cost-conscious home builder.
· Pre-Owned Homes: Landscaping is a big plus to buying a previously owned home. Mature trees, hearty shrubs, rose bushes and lush well-watered lawns are some of the rewards of a pre-owned home. Additionally, very seldom do the sellers take their dishwasher and other appliances with them when they move. You also have the ability to negotiate with the sellers about furniture and other amenities. However, you don’t always know the condition of these amenities. They may end up costing you more on upkeep than if you had just bought new appliances.