Quote:
Originally Posted by retiredguy123
I have been looking for a house and many of the pre-owned houses are priced higher than comparable new houses. I always look to see how much appreciation the pre-owned homeowner expects to get when selling, and I often find that they are expecting too much. If the house is relatively new, it seems like the seller is trying price the sales commission into their asking price so that the buyer effectively pays it. The seller should expect to pay the commission. Also, the new homes come with an excellent warranty and you are certain that the price is going to be competitive. So, in my opinion, new houses offer a better deal, but not in all cases.
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Here is an example for why a preowned home may cost more than a bare bones newer house. If you start with a designer home that cost 290,000 then add $4,000 for a stone or enhanced driveway, another 15,000 for landscaping, $13,000 for wood floors, $18,000 for enclosed glass lanai with a leveled tile floor, $4,000 for crown molding and wainscotting, $2,000 for central vacuuming, This reflects what some of us spend on our homes. Obviously you can't always expect to get back what you paid for improvements, but it may show why existing homes are listed higher.