Aside from deciding what you want your future home to be, where it is located, or how it looks, you should know that there are different ways homes are sold. Understanding the pros and cons between these different ways will give you a great advantage.

1. Buying New

Pros

• Builders may try to get rid of inventory, which could lead to great deals.
• Builders also may offer incentives.
• Having your own aggressive real estate agent will ensure that you’ll get the best deals and incentives.
• You will be the first to live in your home.
• Upgrades and extras may be available if you purchase the house before construction is completed. You may have to pay for these, however.
• The builder will be available after you move in to fix any problems that may come up.
• Appliances, the water heater, furnace, air conditioning, etc. will all be new and at the beginning of their useful lives.

Cons

• There is often no rear landscaping, which can be an expensive investment after the purchase of your new home.
• There will often be no window coverings and extras that you might want; these can also be expensive purchases.
• You won’t know who your new neighbors will be since they most likely will not have moved in yet.
• There are usually special taxes and assessments on new homes.

2. Buying a Resale Home

Pros

• You can see the established neighborhood and meet the people who live there.
• There will usually be rear landscaping.
• There will usually be window coverings and extras that you won’t have to purchase.
• You can see how the house holds up over time; there is also some history in an established house.
• When the seller is motivated, you can find great deals.
• Resale homes tend to be in areas with shorter commutes.
• Resale homes likely have fewer special taxes and assessments as opposed to a new home.

Cons

• Appliances, such as the water heater, will most likely not be brand new. They could be towards the end of their useful lives.
• However, home warranty programs are available. They are a smart way to protect yourself from problems with older appliances and are relatively inexpensive

3. Buying a Foreclosed or Short Sale Home

Sometimes, when a homeowner is no longer able to pay the mortgage on his or her home, the home may either go into foreclosure or the homeowner may attempt to sell it in a short sale.

When a home is foreclosed upon or is being sold in a short sale situation, the lenders could be very motivated to sell. This opens the door for you to find a great deal on a home.

There are many steps and processes in buying a foreclosure or a short sale. To understand more, click here to get your free guide.

Buying a Home in Foreclosure

Pros

• Homes could be more affordable
• First time homebuyers can find great deals and buy a larger home

Cons

• There are different processes that are involved in buying a home in foreclosure. Contact a real estate agent who is experienced in purchasing foreclosures and read our free guide, available here.

Buying a Short Sale Home

• When a homeowner must sell their house and cannot sell it for enough to pay off the loan, the homeowner will sometimes ask the lender to accept what is called a short sale. A lender may choose this option over taking the house back in foreclosure because they might figure a short sale will deal them a smaller loss.
• There are certain processes that occur in a short sale; and having an experienced agent who has represented buyers purchasing short sale homes before will ensure that there are no surprises that will stand in the way of you getting your dream home.
• Click here for our free guide explaining short sales.