When my husband and I moved back in 2012, he was locked-in on building a new home from scratch. The idea of living in a home that no one had ever lived in was really appealing, and we ended up building a house about two miles away from where we'd been living for almost 15 years.
Why Some Buyers Prefer New Homes
That newness is what drives most people to build a new home rather than buy an existing one.
According to a recent Zillow study about new construction, 38 percent of home buyers are willing to consider building a home from scratch. And for the people who actually do, it's mainly about newness.
Almost 50 percent said they liked the idea that everything in the home would be new and unused. But look a bit further down that list and you'll see that 27 percent said they purchased a new construction home because no one else had lived in it before -- so the new factor is really driving buyers more than value, location, and the many other reasons on the list.
(That chart shows the percentage of respondents who selected each characteristic within their top three reasons for buying a new construction home.)
Why Other Buyers Prefer Existing Homes
A majority of home buyers don't have a new home built; they find their new home from among the many existing homes that another owner is selling. The Zillow report offers four primary reasons why some people buy existing homes:
1) Location - some buyers were just unable to find space to build a new home in their desired neighborhood.
2) Timing - new construction takes several months, and many home buyers don't have the time to wait for a new home to be finished.
3) Price - by the time desired upgrades are added in, the cost of a newly built home might be out of budget.
4) Appeal - some buyers said the new construction neighborhoods are too "cookie-cutter" and they prefer the charm and uniqueness of older homes.
Final Thoughts
If you live in an area where there's a lot of new construction, don't assume that all buyers moving in to the area will want one of those new homes. Some will, but most sales involve existing homes and there are several good reasons why many buyers won't or can't even consider building new.
If you're thinking about selling your home while new homes are being built all around, don't worry -- if the home is in good condition and priced right, you should have no trouble finding buyers who'll be interested.
As always, if we can answer any questions about your home, your neighborhood or the process of selling your home, get in touch anytime.
- Cari McGee
