Will & Kendall Counties
Real Estate Tuesday Tip!
A resale home or new construction? Whether you are considering a new construction home or a resale home, make sure you reach out to me first (708) 480-2011 - before even contacting a builder. I will discuss this process (I always do :) ) with you in detail.
Here’s the lowdown on the pros each, generally speaking… (for the cons, work with me…I am honest about what I am seeing in the local market and have decades of experience in real estate - and new construction).
PRO: Resale Home
Generally speaking, in Will and Kendall Counties, resale homes in our area can typically have more variety in a particular subdivision (not always). There are subdivisions in the locale market with various home styles and elevations because various home builders built homes in a particular community. Homes can not be as “cookie cutter” in many subdivisions.
PRO: New Construction
New homes are usually equipped with the latest technology and energy efficient features, which can result in lower utility costs.
PRO: Resale Home
A community has already usually been established and if you go to sell, you’re typically not “competing” with neighboring new build homes within a community. While it is nice to be one of the first in a subdivision typically pricing-wise, it can also create uncertainty as far as if the community will be developed. There is a community in the region that essentially sat for years with just a handful of homes - the homes weren’t selling (and the homes were priced higher than they should’ve been for the features).
PRO: New Construction
Warranty…and taxes. Builders usually offer warranties on new construction homes. This typically means that any structural issues or major defects that may arise within the warranty period are the responsibility of the builder to address. Real Estate taxes in Illinois are among the nation’s highest…property taxes are often based on the assessed value of the property. Assessments might be delayed for new construction homes as local authorities need time to evaluate and determine the property's value…meaning you aren’t typically taxed on the full amount at the beginning.
PRO: Resale Home
Features, room options and thus, pricing. In our local market, many new construction homes are built without living rooms and some without dining rooms (depending on the floor plan). Many are opting for what is called “flex spaces” - areas that can be used for an office, living room, etc. Many resale homes in the market (of course depends on floor plan) where there is new construction, usually have at least a living room or a dining room - oftentimes for the same price - if not less. With new construction, you are paying for NEW…which usually means less square footage for the price of a similarly sized resale home (but not always).
PRO: New Construction
Financing. If you are taking out a mortgage, usually builders (through their in-house lender) are able to offer a lower mortgage rate.
