Once you’ve decided to move on from your current Alaskan home, you are faced with two options— Should you buy an existing home or build one to meet your specific tastes and requirements? This is a common question on many homebuyer minds as we head into 2017, especially as new construction grows in popularity in today’s real estate market.
But which is the most cost effective choice? It may seem that simply buying an existing home would be the more affordable option, but you may be interested to find that the costs of building may not be too far beyond that. Northern Edge Real Estate has included a few pros and cons below for you to consider before you determine the best option for your financial situation this year.
New homes are often more spacious than existing homes, coming in at a median size of 2,467 square feet. When you compare the average costs of building a new home, it equates to around $103 per square foot, which just so happens to be lower than the cost of an existing home.
The costs of keeping up a home, no matter which choice you go with, are not a factor to be ignored. Older homes often require more maintenance due to older running systems and appliances, while new construction homes require less as everything is brand-new and likely still under warranty. For instance, when a furnace is in need of replacement after an average of 20 years, an Anchorage AK homeowner will pay around $4,000.
If you are looking to cater to your specific decorative tastes, new construction may be your best bet. An existing home does come packaged with all of the finishes and features of the property’s construction era or those of the previous homeowner. If you don’t love them, you will need to undergo renovations. With a new build, you are able to choose all of the finishes yourself and have them built into the price of the home.
When buying a home in Anchorage, you also need to look ahead to the resale value. An older home is easier to calculate given comparable properties in the area and sales prices over the years; new homes don’t have that convenience. New builds do not often have properties to compare themselves to that have been price tested over a given amount of time.
If you are ready to begin your home search in Anchorage, Chugiak, Wasilla, and the surrounding Mat-Su Valley or have questions about buying existing versus new construction, give Northern Edge Real Estate a call today! We look forward to hearing from you!