Why New Construction Houses Are Worth More?

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Why New Construction Homes are Valuable?
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Premium Is More Affordable Older homes require
more updating and repair and replacement of
larger components, which can be expensive. - Ryan
Lambesis, a related realty in Chicago, and L2
Properties have seen fluctuations in premiums for
newly built homes over time, said Rick Palacios,
research director at John Burns Real Estate
Consulting in Irvine, California. Historically,
newly built homes have cost about 1 percent more
than resale, based on national average price
figures from the 1960s. Prices in the middle are
not an absolute statistic because they are
affected by low-cost and high-value assets as
well as market direction. Still, they can be
useful long-term indicators. Calculate
construction Cost _at_ https//www.saibuildersindia.c
om/saibuilders/construction-cost-calculator
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In the 2010-12 timeframe, the premium for newly
built homes was significant, and in 2013 it
increased by 0 percent, says Palacio. Since then,
the premium has fallen by about 30 percent. This
means that newly built homes today are less
expensive than resale. Pottery was the
discrepancy, with builders building larger homes
in the main market with higher land costs due to
higher post-recession preference. Builders also
visit buyers who have a good place to shop at a
time when lenders have strict guidelines for
borrowers. Increased government regulations and
rising costs for construction materials and
workers were also important factors, Palacios
explains. Part of the premium is coming down
because when builders start to make mortgage
financing more available, buyers will be targeted
to start building smaller homes on the way
out. Now the story is that its compact, which
we think is a good thing for homes, says
Palacios. Request a Quote _at_ https//saibuildersin
dia.com/saibuilders/homerequest-quote-to-us
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Premium Varies By LocationThe local housing
market does not always reflect the trend of
national real estate. Builders, realtors and
buyers may see a national trend locally but it
will feel different in different markets or in
different areas.Hoffman cites Chicago as an
example. He says his perception is that premiums
have dropped in the city and widened in the
suburbs. Buyers who can afford remodeling will
find better deals for older city homes, while
demand for newer suburban homes has
increased.Consumers have seen the negative
effects of the good part of the decade without
building a new decade. Most (recently built)
homes are close to a decade of obsolescence, and
pickings are very thin in resale," he says.Age
of the HomePetty pointed to Atlanta as an
example. He says the metro area "fell sharply in
the 1980s and '90s. Those homes are too old to
attract buyers and the facilities in that area
can be disrupted. Contact us _at_
https//www.saibuildersindia.com/saibuilders/conta
ct
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The average resale home is 40 years old.Ryan
Lambesis, a real estate broker and co-founding
partner of L2 Properties, a real estate
development company in Chicago, says older homes
need more updating and repair and replacement of
key components.All of these factors affect the
price premium for newly built homes.With a
new-construction home, repair costs are built
into the cost premium and the buyer is protected
by the builders warranty and the manufacturers
warranty.New construction will always be more
expensive, says Lambesis. "There's a value in
that you're taking the initiative (then) not
paying.Given the many benefits, the box
concludes There is no reason not to move into a
new building.Read More _at_ https//www.saibuilder
sindia.com/saibuilders/why-new-construction-homes-
are-worth-more