For today’s homebuyers in the DC Metro area, 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 to move into, from DC to Bethesda to Chevy Chase and beyond, 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 model home in a DC, Maryland, or Northern Virginia community, 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 in Metro DC 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.
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 today), 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 than new construction developments.
Have questions about older homes in Montgomery County or buying a home in DC, Maryland, or Virginia? The Estridge Group is here to help!
We look forward to hearing from you!