Existing or New Construction Homes in Atlanta?
Choosing between buying pre-owned or new construction homes in Atlanta, Georgia is a serious decision. To figure out which type of house gives you the best value for your money and suits your specific needs, you need to consider various factors. The price tag alone isn’t the only thing prudent homebuyers should think about.
In Atlanta’s competitive housing market, potential buyers should explore all their options. Although each house has its own unique appeal, it's important to recognize that resale and new construction homes in Atlanta have their own advantages and disadvantages. Here’s where we can help you to weigh the pros and cons of both.
Existing vs. New Construction Homes in Atlanta Cost Considerations
Whether it's a new property or one that's new to you, it's important to think about the cost-related factors involved in resale and new construction homes in Atlanta. Remembering these points will help you make an informed decision about the type of home that fits your financial situation best.
Home Price of Resale and New Construction Homes in Atlanta
The cost of building a single-family home can vary greatly depending on the location, even within the same area. According to Fixr.com, the average national cost for constructing a new two-story house with a size of 2,470 square feet is $295,000. On the other hand, the National Association of Realtors reports that the median sale price for an already-existing home in the South Census Region is approximately $219,200.
Considering factors such as home size, location, and mortgage terms, there can be a significant price difference between opting for an existing home or considering new construction homes in Atlanta. In many cases, purchasing an existing home tends to be the more cost-effective choice. These homes often provide better opportunities for negotiating a lower sale price compared to new construction.
Maintaining Old and New Construction Homes in Atlanta
When it comes to the “sticker” price, older homes might seem more affordable at first… but it's important to realize that this doesn't include any potential repair costs that often come with buying a pre-owned property. These extra expenses can significantly increase the overall cost of the purchase. If you're thinking about buying an older home, it's a good idea to get a property inspection to make sure these additional costs fit within your budget.
On the other hand, new construction homes in Atlanta usually require fewer repairs for about seven years, and most major expenses are covered under warranty. Working with a new home builder also gives you the option to customize the construction process. Many builders provide choices to add more closets, modify the floor plan, or upgrade appliances—so you won't need to make major renovations in the first years of owning the home.
Existing vs. New Construction Homes in Atlanta Mortgage Approval
When you're ready to buy a home, it's important to be prepared for the mortgage application process.
Sometimes, getting approved for a loan on a new home can be more challenging than for an older property. Since the financial crisis of 2008, lenders have become more strict in their lending practices. While there has been a recent increase in banks and credit unions being more willing to offer new home mortgages, borrowers should still expect to have all their finances in order to get approved—especially for new construction homes in Atlanta.
Resale and New Construction Homes in Atlanta Location Matters
The location of a home has a significant impact on its property value. If you're considering buying an older house, analyzing its historical value trends on different home listing platforms can give you insights into whether it's a good investment. These platforms also provide information on average home values in different neighborhoods, which can help you narrow down your search. However, it's harder to predict the future value of new construction homes in Atlanta, especially if there might be future developments in the area.
Sometimes, newer homes are located in less developed areas with more open land. This means they might be farther away from schools, workplaces, shopping centers, and other places you visit every day. This consideration goes beyond personal preference. Studies show that long commutes can negatively affect happiness, and living far away from essential places could also increase your expenses on gas and vehicle maintenance.
However, this isn't always the case. In Atlanta, builders are creating new neighborhoods in desirable and affordable communities across the region. Making a list of the amenities you can't live without will help you during your home search. This is especially true if being close to these amenities is important to you for saving money and time.
Hidden Costs
While these extra costs shouldn't be the only factor in deciding between existing or new construction homes in Atlanta, they deserve careful consideration.
Homeowner's insurance can greatly affect the overall cost of a home. Insuring a newer home is often more affordable because it meets current standards. Depending on the property's location and condition, insurance for older homes tends to be more expensive and may have coverage challenges.
Energy efficiency is a key feature of new construction homes in Atlanta, offering long-term cost savings. They have better insulation, eco-friendly materials, and advanced technologies, resulting in significant energy savings. On the other hand, older homes usually have higher monthly expenses for heating, cooling, electricity, and water. Depending on the home's age, costly items like water heaters, AC units, and aging pipes may need replacement.
Resale value may not be the first thing we think of, but beyond the immediate home purchase, it's important to consider that you may sell your home in 5 or 25 years. Life circumstances, like job relocations, growing families, or empty nesting, may lead to a move. So it's crucial to ensure that your investment will be attractive to future buyers.
Property taxes should not be ignored. Older homes, often priced lower, fall into a different tax base than newer ones. In many cases, this means lower property taxes for owners of resale homes. If property tax rates are a concern, researching the current rate and its historical changes is advisable. Also, find out about potential major municipal projects in the area that could affect property tax rates in the near future.
Existing vs. New Construction Homes in Atlanta Pros and Cons
Exploring the unique appeal of individual homes, whether resale or new construction homes in Atlanta, reveals a range of advantages and disadvantages. When deciding between a brand-new home or an existing one, it's important to consider several factors.
New Construction Homes in Atlanta Pros
Contemporary and Customizable Designs
New construction homes in Atlanta allow you more freedom to create your dream living space. Working with contractors gives you the flexibility to design either a traditional or modern layout that suits your lifestyle. Whether you need a home office or prefer a pre-constructed new build, modern features are often evident with spacious, open floor plans and well-lit rooms.
Smart and Healthy Living
New construction homes in Atlanta often come equipped with "smart" technology that automates various aspects, from internet connectivity to security systems. Additionally, these homes frequently use low- and zero-VOC paints and building materials, promoting better indoor air quality.
Builder Warranties
Many new construction homes in Atlanta come with warranties that protect components for an extended period. This reduces the need for major repairs in the first years of homeownership.
Flexibility for Buyers
When it comes to new construction homes in Atlanta, one of the major benefits is the flexibility it offers. This means that if you choose to place an offer on a house that hasn't been built yet or is still in the early stages of construction, you have more leeway. This is especially helpful if you have a more relaxed moving timeline or if you want to avoid intense competition.
New Construction Homes in Atlanta Cons
Potential for a Long Commute
Detached single-family homes are often built in the outskirts rather than urban areas. This is because there is more available land in these areas. One trade-off of choosing new construction homes in Atlanta might be a longer commute to workplaces, grocery stores, and hardware shops. In suburban and rural locations, there might be fewer nearby options for dining, cultural experiences, arts, and entertainment compared to urban areas. However, in urban settings, you might come across newly constructed apartments, townhomes, and even a few single-family homes closer to cultural hubs.
Immature Landscaping
It takes time for landscaping to grow and develop. New construction homes in Atlanta are often part of a developed subdivision where land has been cleared for homes and yards. These surroundings can initially feel bare and exposed until plants and landscaping features mature, bringing the property to life.
Potential Waiting Periods and Delays
This aspect comes into play when considering custom-built homes or homes that are in the construction phase. Unlike moving into a pre-existing home, the process of building or waiting for new construction homes in Atlanta to be completed can extend over several months. The duration can vary based on the market and builder, so it's important to include extra time in your plans to account for potential delays.
Existing Homes in Atlanta Pros
Move-In Ready
Buying existing instead of new construction homes in Atlanta makes moving in much easier and faster. You'll usually be able to settle in soon after getting the keys, unless major renovations are needed.
Established Neighborhood Charm
The appeal of older neighborhoods lies in the beautiful, mature trees and landscaping. These not only make the streets and parks more attractive, but also enhance the overall atmosphere in yours and your neighbors' yards.
Streamlined Decision-Making
Building new construction homes in Atlanta requires making numerous decisions, from floor plans to finishes. With an existing home, you can focus on areas that need improvement or customization, making decision-making simpler.
Architectural Details and History
Older homes often have unique architectural details that are difficult and expensive to replicate in new construction homes in Atlanta. They also come with fascinating stories that become a part of your own narrative when you move in.
Existing Homes in Atlanta Cons
Outdated Layouts
Unless a house has had extensive renovations, modern floor plans are often hard to find. The kitchens, bedrooms, and even living rooms in older homes were designed for a different time, possibly not aligning with your spatial preferences. With new construction homes in Atlanta, you’ll get an updated floor plan.
Obsolete Technological Features and Fixtures
Old homes commonly have outdated technology, with some still using old knob-and-tube wiring from the early 20th century. While it's possible to upgrade the wiring and introduce smart technology to replace old thermostats and lighting, the cost of doing so after the home is built is typically much higher than incorporating it during the initial construction.
Lack of Energy Efficiency
Many older homes have poor insulation and rely on environmentally unfriendly resources like oil for heating. This will either lead to long-term costs, with higher energy bills, or one hefty short-term investment to make updates.
Increased Repair and Maintenance Needs
Unexpected repairs to old appliances, roofs, and heating systems can require expenses that weren't initially expected. These repair costs become inevitable—and sometimes unpredictable—as time goes on.
Resale or New Construction Homes in Atlanta—What’s Best for You
In the end, both pre-owned and new construction homes in Atlanta offer something unique for potential buyers. Regardless of which style you choose, it’s important to weigh the pros and cons carefully. With this information in hand, you can plan ahead for success as you move forward with finding the perfect home for your family’s needs.