What to Consider When Deciding Between New Home Construction and Resale

If you’re in the market to buy a home, you’ve got choices.

Aside from the actual type of property – condo, townhouse, detached, etc – you need to decide whether to take the resale or new construction path to home ownership.

But the decision can be a tough one, considering the pros and cons that come with each. And not only is this a financial debate, it’s also about different lifestyles.

Here are some key considerations about both buying resale and new home construction to think about before you make your final decision.

Level of Customization

If you buy resale, you’ll likely be looking at quite a few properties before you find one that matches your tastes and needs exactly. Buying an existing home usually means you’ll need to be willing and ready to make some sacrifices, unless your bank account allows for some serious tweaking.

Whether it’s the choppy floor plan or the lack of a master ensuite, the downside to buying resale is that you probably won’t be able to tick off every single one of your desires, unless you’re prepared to dump a lot of money in future renovations.

If you choose to buy resale, determine what your wants and needs are in a potential property before you start looking. For example, if you absolutely must have a double attached garage and a main-floor laundry room, be prepared to sacrifice other things to get them in case you just can’t find a house that meets all your criteria.

Of course, you just might find your dream home that fits within your allotted price range. But it’s always better to be prepared for the unknown.

One of the biggest advantages to buying a new home, on the other hand, is the opportunity to customize the home to precisely match your wants and needs. Whether you want an open floor plan, a combined living and dining room, a walk-in closet, or a walk-up to the backyard from the basement, you can design the plans accordingly before the home is built.

Not only that, but you also have the ability to choose the finishes, such as crown molding, granite countertops, or hardwood flooring. With a new build, you have control over how your home will look when it’s done, which isn’t always the case with a resale.

Efficiency

New homes are much more energy efficient compared to properties built decades ago. From the insulation, to the HVAC systems, to the windows and doors, there’s no question that new home construction will offer you a much higher degree of energy efficiency.

You’d be amazed at the cost savings that come along with an energy efficient property. In fact, new homes that cut the amount of energy used to operate it typically come with an average of 20% savings in utility bills, which translates to an average of $400 on annual savings.

A house that was built in 1950 will certainly cost more to operate than a new home that is built to today’s more modern standards. Of course, you can always update the home to bring it up to par, but you’ll need to be prepared to pay the bill to pay for such an endeavor.

Upfront Costs

Unless you buy a resale home that needs a ton of work (and, therefore, money), the upfront costs of a newly built home can be a lot higher.

Not only are you paying for the home itself, you’ve also got to flip the bill for things like window blinds, french doors, a fence, landscaping, and other items that the builder won’t be putting in for you.

In addition, you’ll need to pay a deposit to the builder to hold the desired location of the new home. While this price can vary, you can expect it to run around 10% of the cost of your newly constructed home. And the longer it takes for the home to be fully built, the longer that money will be sitting with the builder, rather than somewhere else where it could have been collecting interest.

Make sure all these upfront costs are discussed with the builder and accounted for before you move forward with new construction.

Sellers of resale homes don’t typically take the window treatments with them, nor will they be ripping out the fence or french doors, either. All these little extras that you might not have thought about before can really add up in a lot of savings when you buy a resale compared to a new home build.

Speed of Closing and Possession

When you buy a resale property, you can generally expect to get the keys to the place anywhere between 30 to 90 days after an offer is accepted. That’s a lot less time than the average new come construction closing date, which can be weeks or months – or longer – after the initial deposit is put down.

And if there are any delays throughout the process – which there almost always are – you can expect that initial closing date to be pushed out even further.

If you don’t have much time to play with, then a resale makes much more sense.

Established Neighborhood Versus Bare Bones

One of the best perks about buying an existing property is that you’re buying into an established neighborhood. The trees are mature, the schools are built, the area amenities are settled, and internet connections are secured.

Newly constructed homes, on the other hand, typically don’t have these features. Instead, it could take years before any of these amenities are available. In the meantime, you’ll have to put up with a lot of dust, plenty of noise, broken cell reception, and nothing green to look at outside for a while.

Cookie Cutter Versus Character and Charm

New-build homes typically offer clean lines and modern designs, but they often lack the charm that’s more typical with existing homes. Inside resale homes, you can often find lovely architectural details, like built-in shelving units, leaded glass, and vaulted ceilings, which offer a unique feeling to each property.

New homes in subdivisions often have that ‘cookie cutter’ feeling, where every house on the block seems to be just about the same. While you can always add that classic charm and character to a new home, it’ll come with a price tag.

The Bottom Line

Not every buyer necessarily wants the same things in a home or neighborhood. You’re definitely going to have a bunch of questions throughout the home buying process, so make sure you answer them before you take the plunge. To make sure the decision you make is the right one one, be sure that you’ve got excellent representation, regardless of whether you choose to go the resale or new construction route.

Building a Deck? Consider These Things First

Extending your living space to the outdoors is a great way to infuse an added dimension to your home and allow you to enjoy it to the fullest. In fact, outdoor living is really getting popular these days, with more and more homeowners adding decks to their homes as a means of enjoying Mother Nature.

But before you start drafting up those blueprints for your deck building projects, make sure you consider these factors first.

Purpose

The average homeowner builds a deck to perform a few different functions, like cooking, eating, entertaining, and so on. But the options are seemingly limitless.

Figure out exactly what you want your new deck to do before you even start drafting up your building plans. Doing so will not only help ensure that the final product is exactly what you’re looking for, it will also help you stay within budget, and eliminate any potential safety hazards.

Privacy

Think about the amount of privacy that you want as well. You don’t want to be on display every time you have dinner on your deck. Consider adding a pergola, latticework, bushes, or anything else that will add a level of privacy to your deck.

Access

How do you plan on getting onto the deck from your home as well as from your backyard? If you’ve already got a door that leads directly to your deck, that’s a huge load off your back. If not, you’re going to have to add an opening from your home which will involve knocking out a part of the exterior wall.

If you’re planning on eating meals out there (which most likely is going to be the case), then ideally you’ll want the opening access as close to the kitchen as possible. It would be pretty inconvenient to have to walk around the house or climb a ton of stairs with platters of food in your hand.

Design, Shape & Size

Aside from how you want it to function, you also want to make sure the deck is visually appealing to you. Consider the architecture of your home so that it at least goes with its style. The size of your deck will depend on the size of your property, as well as what you want it to do for you. Its shape will be dictated by your home’s design.

For example, building a curved deck onto a linear house might be like forcing a square peg into a round hole. Instead, follow the lines and proportions of your home so it’s a seamless extension from the indoors to out. Get yourself some help from a deck building pro to get some pointers about deck style, materials, and more.

Materials

You’ve got a handful of options when it comes to materials to build the deck with. Typically, wood, composite boards, and even concrete are used to construct decks. While wood was the dominant choice among homeowners for a long time, composite boards are becoming increasingly popular.

Wood requires a lot of upkeep and maintenance, while composite is easy to care for and won’t look ancient within a couple of years from wear and tear. Composite boards are made of a mixture of plastic and wood fibers. While they’re a bit more expensive than wood, they more than make up for this up-front cost without the need to re-stain it and pay for upkeep. In fact, the cost over time can amount to less than real wood.

Local Regulations

Every municipality has its own governing rules when it comes to home renovations, and that includes buying a deck. Before you make those elaborate plans of yours, be sure to check with the local government office’s department that deals strictly with building permits.

Construct your deck too close to the neighbor’s yard, or hoist it up too high, and you’re asking for trouble. There are a bunch of rules that you might not be aware of that could sabotage your plans, so be sure to find out what the specifications are to building a deck in your neighborhood first rather than having to modify it or pay pesky fines after the fact.

Shade

Keep things like shade from sun and rain into consideration. If it’s way too sunny or raining out, you’ll be less inclined to hang out on your new deck without some sort of shade or protection from the elements. You’ve got a lot of options here, including retractable canopies, to large umbrellas, to pergolas, and more.

You can even construct a more permanent roof fully equipped with a ceiling fan, recessed lighting, and so forth. The project can literally be as complex and sophisticated as building a little house.

Your Budget

Obviously, whatever deck you build will have to fit nicely within your budget. You won’t be able to enjoy it if you’ve got to work overtime for months just to pay it off. On average, a composite deck that’s around 500 square feet can cost somewhere around the $25,000 mark.

A deck with a variety of elevations will also jack the price up because of the more intricate plans and work involved. Where you live will also play a role in the cost of your deck. For instance, the same-sized deck in the Mid-West would probably cost about one-third of the price compared to San Francisco.

Don’t let these figures scare you off: deck additions are excellent investments that can increase the value of your property. In fact, you can expect to recoup an average of 70 to 80 percent of the value of the deck when you sell your home, so it’s definitely a home improvement job that you should seriously consider.

Understand a Few Things Before Buying an HOA Home

If you want to live in a community where your property is taken care of without you having to lift a finger, or where you have a variety of amenities to use at your disposal, then a homeowners’ association (HOA) might be perfect for you.

But before you jump in with both feet, there are a few things about HOAs that you should be aware of.

After all, buying a home is a huge investment – most likely the biggest one you’ll ever make. And as such, you want to be sure the choice you make is the right one for you.

Buying an HOA is Like Buying a Lifestyle

When it comes to an HOA, a certain amount of conformity is involved. If you’re not too keen on keeping in line with the standards of a particular HOA, it could be a nightmare for you if you actually buy into it.

There’s a certain price tag that comes along with the scrupulously manicured lawns, the well-maintained exteriors, and the consistently paved roadways. Every HOA has their own set of conformity rules that homeowners need to abide by in order to maintain this level of care among the properties and the common areas.

Before you scoff at these rules, you should understand the reasoning behind them: they help keep property values up over the long haul. In fact, the main goal of an HOA is to protect the investments of homeowners within the community and ensure that property values are maintained and increased over time, rather than allowing the area to go down the tubes like many American neighborhoods have.

So, if you’re OK with keeping your garage door color the same as your neighbors, or putting a limit on the number of lawn chairs you plop on your front lawn, then an HOA just might work for you.

HOA Fees Encompass Different Things in Different Complexes

It’s common knowledge that living in an HOA involves paying fees on a monthly basis. These fees go towards a bunch of different things, namely the maintenance and upkeep of common elements of the community. This can include anything from cutting the grass to cleaning the pool.

You’re basically paying someone else to maintain your property so you don’t have to. It’s a pretty good deal: you don’t have to physically maintain the property yourself, and the community as a whole is always in pristine condition.

But the HOA fees in one complex might not necessarily cover the same things in another one. Not only that, but the fees themselves might vary drastically from one complex to another. The average HOA fees usually range between $200 to $400 per month, but the more well-to-do the building is, and the more amenities it’s got, the higher you can expect the HOA fees to be.

In general, these fees cover services like water, sewage, garbage removal, lawn maintenance, repairs to the outside of condo buildings, and the care of common area amenities. Make sure you find out precisely what the monthly HOA fee is, and what exactly is covered under these dues.

Ask questions. How are increases in HOA fees determined? How often do they occur? How many times have they already been increased in the past? Is cable included?

Compare these fees to the average dues in surrounding neighborhoods. Are they at par? Or are they a lot higher? It’s worth noting that you’ll be paying for the complex’s amenities even if you don’t use them. If you’re not going to use the swimming pool or the on-site tennis court, ask yourself if you’re OK with financially contributing towards their upkeep. If not, it just might make sense to choose an HOA that doesn’t have such amenities, which will be reflected in their lower fees.

There’s This Thing Called an ‘Assessment’

Not only do you have to pay HOA fees on a monthly basis, you’ll also be responsible for contributing to an extra ‘assessment’ if there’s not enough money in the HOA’s reserve funds to pay for major expenses, like replacing the building’s roof or repairing its foundation. If money in this reserve fund is a little short, the HOA could charge you an extra assessment to cover the added expenses, that can be pretty pricey.

Before you buy, inquire about any assessments that are in the works for the near future. If there are, you need to be prepared to dish out a little more than what the current HOA fees demand.

You Have a Say

If you don’t like some of the rules within your HOA community, then do something to change them.

The ideal HOA encourages residents to get involved and have a say in how the rules are implemented and what changes can and should be made. The HOA will advertise their meetings that residents are allowed to attend, so consider going to them when your schedule permits so you can voice your opinion and put in your two cents about what is working and what isn’t. You might even consider running for a seat on the board to fight for the changes that you and fellow residents want.

Learn about the process for making any changes to rules or adding new ones. If you think the rules are too restrictive, you might want to look elsewhere.

If you want to live in a community where your property is taken care of without you having to lift a finger, or where you have a variety of amenities to use at your disposal, then a homeowners’ association (HOA) might be perfect for you.

But before you jump in with both feet, there are a few things about HOAs that you should be aware of.

After all, buying a home is a huge investment – most likely the biggest one you’ll ever make. And as such, you want to be sure the choice you make is the right one for you.

Buying an HOA is Like Buying a Lifestyle

When it comes to an HOA, a certain amount of conformity is involved. If you’re not too keen on keeping in line with the standards of a particular HOA, it could be a nightmare for you if you actually buy into it.

There’s a certain price tag that comes along with the scrupulously manicured lawns, the well-maintained exteriors, and the consistently paved roadways. Every HOA has their own set of conformity rules that homeowners need to abide by in order to maintain this level of care among the properties and the common areas.

Before you scoff at these rules, you should understand the reasoning behind them: they help keep property values up over the long haul. In fact, the main goal of an HOA is to protect the investments of homeowners within the community and ensure that property values are maintained and increased over time, rather than allowing the area to go down the tubes like many American neighborhoods have.

So, if you’re OK with keeping your garage door color the same as your neighbors, or putting a limit on the number of lawn chairs you plop on your front lawn, then an HOA just might work for you.

HOA Fees Encompass Different Things in Different Complexes

It’s common knowledge that living in an HOA involves paying fees on a monthly basis. These fees go towards a bunch of different things, namely the maintenance and upkeep of common elements of the community. This can include anything from cutting the grass to cleaning the pool.

You’re basically paying someone else to maintain your property so you don’t have to. It’s a pretty good deal: you don’t have to physically maintain the property yourself, and the community as a whole is always in pristine condition.

But the HOA fees in one complex might not necessarily cover the same things in another one. Not only that, but the fees themselves might vary drastically from one complex to another. The average HOA fees usually range between $200 to $400 per month, but the more well-to-do the building is, and the more amenities it’s got, the higher you can expect the HOA fees to be.

In general, these fees cover services like water, sewage, garbage removal, lawn maintenance, repairs to the outside of condo buildings, and the care of common area amenities. Make sure you find out precisely what the monthly HOA fee is, and what exactly is covered under these dues.

Ask questions. How are increases in HOA fees determined? How often do they occur? How many times have they already been increased in the past? Is cable included?

Compare these fees to the average dues in surrounding neighborhoods. Are they at par? Or are they a lot higher? It’s worth noting that you’ll be paying for the complex’s amenities even if you don’t use them. If you’re not going to use the swimming pool or the on-site tennis court, ask yourself if you’re OK with financially contributing towards their upkeep. If not, it just might make sense to choose an HOA that doesn’t have such amenities, which will be reflected in their lower fees.

There’s This Thing Called an ‘Assessment’

Not only do you have to pay HOA fees on a monthly basis, you’ll also be responsible for contributing to an extra ‘assessment’ if there’s not enough money in the HOA’s reserve funds to pay for major expenses, like replacing the building’s roof or repairing its foundation. If money in this reserve fund is a little short, the HOA could charge you an extra assessment to cover the added expenses, that can be pretty pricey.

Before you buy, inquire about any assessments that are in the works for the near future. If there are, you need to be prepared to dish out a little more than what the current HOA fees demand.

You Have a Say

If you don’t like some of the rules within your HOA community, then do something to change them.

The ideal HOA encourages residents to get involved and have a say in how the rules are implemented and what changes can and should be made. The HOA will advertise their meetings that residents are allowed to attend, so consider going to them when your schedule permits so you can voice your opinion and put in your two cents about what is working and what isn’t. You might even consider running for a seat on the board to fight for the changes that you and fellow residents want.

Learn about the process for making any changes to rules or adding new ones. If you think the rules are too restrictive, you might want to look elsewhere.

The Bottom Line

There are definite perks too living in HOA community. You’ve got access to some great amenities, and you don’t have to worry about having to mow the lawn or trim the bushes. You also don’t have to worry about annoying neighbors who like to park their cars on their front lawns or let their weeds grow out of control – the HOA won’t allow that sort of thing.

But, like any other investment, a little due diligence is required on your part to make sure the one you’re making is right for you. Don’t buy into anything that you’ll regret shortly after moving in.

Simple Ways to Boost Privacy in Your Yard

Whether you’re playing with the kids, enjoying a family meal, or even just catching some rays, the last thing you want is to be put on display in your own backyard. The demand for outdoor living space among homeowners has grown over the years, making privacy that much more important. If your yard is exposed to the neighbors, you might want to come up with tasteful and functional ways to add a subtle barrier between your yard and others around you.

Keep these simple tactics in mind to create a secluded sanctuary in your backyard.

Plant Hedges

Lining your property with a row of hedges is an easy and clean way to add a divide between your lot and the next. Privacy planting like these can create privacy and drown out the chatter from next door.

To plant a new hedge, dig a trench about two feet wide and two feet deep, and allow about a foot between each shrub planted. Add enough soil to reach the branching trunk, and be sure to water frequently within the first year. Keep in mind that hedges require regular trimming in order to keep them neat and tidy.

Layer Your Greenery

If the space permits, try layering your greenery to create a wonderful display of plants, flowers, shrubs, ornamental grass, and trees while shielding your outdoor area from the neighbor. Start with the tallest greens in the back, then gradually step them down in height to create depth, visual appeal, and texture.

If the neighbors beside or behind you are perched up higher than your lot, or have a raised deck or terrace, plant tall-growing shady trees to block out the neighbors view into your yard.

Install a Fence

A fence is an obvious way to add privacy to your property, but it doesn’t have to be so cold and dull. You can dress it up with some paint, vines, shrubs, perennials, or hanging planters to make it more pleasing to the eye compared to a long line of plain wood.

Fences are perfect for year-round screening and for side yards where space is particularly limited. Just be sure to check with your local jurisdiction to see if a permit is needed, and what height restrictions you’ll have to adhere to.

Install Lattice or Ornamental Screens

If the thought of a fence is just too severe for your tastes, then lattice is the next best thing. It’s the perfect way to add seclusion without entirely shutting your property off.

Lattice is also an ideal way to add some of your favorite vines or climbing flowers for a decorative and tranquil space. You don’t have to ward off the entire yard with lattice, either. Instead, consider adding it only to specific areas where privacy is especially craved, such as in the corner or against the eating area.

Add a Retaining Wall

While a little more expensive and labor-intensive, adding a decorative stone retaining wall is a fantastic way to seclude your yard. If you don’t want to look at a complete wall of stone, you can erect a shorter retaining wall, then mount some decorative trees or shrubs along the top half to break up the monotony.

Keep in mind that locations with poor drainage will require deeper excavation to reach below the frost line, as well as piping installation to allow for adequate water drainage from the footing.

Build a Pergola

If you’ve got defined spaces in your yard, such as an outdoor kitchen or patio, you might want to focus your screening to these specific areas rather than your entire yard.

Pergolas work wonderfully in defined spaces like these, while offering shade from the sun. You can even take things a step further by installing an enclosure around the pergola to create a higher level of intimacy and privacy while enjoying a family meal or entertaining guests.

Plant Some Trees

Even just one single tree can be enough to block a view and offer you the privacy you desire. Choose a wide-growing tree, such as a dwarf maple or birch to both shield your yard while acting as a decorative focal point to your overall landscaping scheme.

You can also plant a row of columnar trees around the perimeter of the property or in specific areas if your yard is smaller in scale; they grow quite tall, but don’t take up too much horizontal space.

Add a Fountain

In addition to blocking the view into your yard, you’ll likely want to shield it from surrounding noise as well. Whether it’s the chatter of the neighbors, the loud play of neighborhood kids, or traffic from the street, a decorative fountain can work quite well at drawing out unwanted noise.

You can go as simple or as elaborate as you desire. The pleasant sound of trickling water can block out noise while creating a tranquil sanctuary right in your own backyard.

There are no hard-fast rules that dictate that you should use only one of the above strategies to boost privacy in your yard. You might even want to consider incorporating several tactics to increase solitude and create a secluded retreat for you and your family to enjoy.