Inventory is so low right now in Indiana that buying an older home may just cost you too much as a buyer. Sellers are not paying closing costs and the nice homes are always ending up in a multiple offer scenario.
If I was a buyer, I would go with a new construction. Why? In the long run you’ll have more equity build up in it than if it was to be an older home. Don’t get me wrong now. Some older homes are great in value but it is all depending on the area. But a new construction in a brand new subdivision is more than likely to be a better investment for your money.
I sold a client of mine a new construction two years ago. Though she hesitated at first. Saying that they were too expansive and the floor plans were too weird and was also worried about the location etc. To get a long story short. I managed to convinced by explaining to her about the benefits of purchasing a new construction and how she can end up in a better position when she is ready to sell.
as I was seating in my office the other day. My phone rang and it was her on the other end. She asked if I could do a market analysis for her on the home that she had purchased with me two years ago. Come to find out. She has gained 18% equity on the home and didn’t even made a single upgrade.When I told her how much her home worth she almost passed out. I remembered hearing her gasping for air over the phone.
Then I thought of an idea and ran a market analysis on a another buyer who purchased an older home same size as my client four years ago. This buyer only gained 5% of equity on his home. This home is in a pretty descent area too. As a matter of fact, it was a multiple offer scenario.
The market is going pretty fast right now and it changes on a daily bases. I have no clue why, but builders are building more homes at this time. according to Indiana Builders Association builders are building more. New constructions is up by 12% in the first seven months of this year.
So if you are a buyer who is looking at possibly sell in the next four or five years. I would recommend that you go with a new construction. And you want to be the first few buyers in there. Because by the time they are done building a home same size as yours is more than likely to be up by 12 to 25%. It is a win win