For homebuyers in Alabama today, there are many choices associated with local real estate. From when to buy or when to sell, which mortgage type is best and which community is the best fit, there is also one other important question homebuyers must ask themselves— new construction or existing?
The prices can vary dramatically and while you may prioritize having a brand-new home over a lived-in property, it’s important to consider the financial differences between the two.
New Construction Upgrades
When you visit a newer home on Lake Martin, it can be easy to feel attached to all of the modern features. However, each of those upgrades comes with a price tag and it can be a hefty one at that. When you realize how much everything you want in the home will cost, older homes start to become more appealing.
More available, less expensive
Older homes on Lake Martin and in the surrounding areas are typically less expensive than new construction and more readily available in the real estate market than newer homes, all depending on the area, of course.
Troublesome Financing
Newer homes can come with larger price tags and because of this, can be harder to finance. With stricter lending requirements (especially for self-employed buyers), homebuyers are forced to comply with traditional guidelines of down payments and debt to income ratios. If your home will be using more than 30% of your household gross income to cover living expenses (mortgage, taxes, insurance), lenders may not see that as a sound purchase.
Commute Cost and Time
Oftentimes, new construction homes are built where land is less expensive, which can mean outside of town. While living in the suburbs can cost you more in terms of commute time, it is worth a look with your real estate agent to see which older homes are closer to than new construction developments.
As your local real estate experts, The Haynie Team can help you determine which style of home and location are best for you and your needs!
Have questions about older homes or buying a home on Lake Martin? We’re here to help!
We look forward to hearing from you!
Becky Haynie, Associate Broker / Realtor
Lake Martin Realty
www.HomeOnLakeMartin.com
