How is buying a new construction home in Metro Detroit like buying a new car

I had an interesting question posed to me yesterday by clients of mine that are deciding on whether to purchase a new construction home in Novi, Michigan or purchase a resale/previously owned home. The question that was asked is, “If I had to put either home back on the market to sell immediately, which home would I potentially lose more of my investment on”. My thoughts immediately were shifted to thinking about when my wife and I purchased our new cars this year. As the old saying goes, “when you drive the car off the lot you loose X% of the cars value.” I feel that analogy would carry the same weight for this housing scenario. Like buying a new car, you pay a premium that is rarely recaptured in the new construction purchase/transaction. At the same time, there is something to be said for having a brand new home and sometimes it is hard to put a price on that. One other thought, back to the car scenario is sometimes you can buy a car that is a few years old and save thousands on a car that has a very limited amount of mileage and use. That same analogy can hold true for buying a home that is just a few years old, save thousands on a home that has a lot of life left in the major mechanical and structural items.


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One response to “How is buying a new construction home in Metro Detroit like buying a new car

  1. Amy Spahr

    A brand new home is nice but there is a lot of time and work in painting, window treatments, storage solutions, landscaping. Often we do this work ourselves or pay a lot of money to have it done. There’s also the time and hassle of dealing with the builder on the 1 year punch list repairs. If you can find an almost new home where this stuff is done and you have similar taste to the homeowner, so you don’t have to deal with this, what a bonus!

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