You should price your existing home 5% – 10% below the builder’s new home price to be competitive.
If you try to sell a new home a month after you move in, you shouldn’t expect to get what you paid for it.
The same way a new car depreciates the moment you drive it out of the showroom floor, a new home loses value the moment you buy it.
Buyers (usually the female half of a couple is the primary decision-maker) are willing to pay 5% to 10% more for a home that was never lived in, and where they can choose their favorite colors, finishes and upgrades.
This 5%-10% rule applies 99% of the time, but most sellers do not agree and tend to overprice their home.
The chart above illustrates what is generally the case when comparing resale values of new home and existing homes.
In the short run, you are ahead with an existing home; in the long run you are better off with a new home.”
What is not depicted in the chart is that new homes tend to require less maintenance, and builders generally have warranties which can also reduce maintenance costs.
If you are buying an existing home or building a new home in Texas, don’t forget about our 2% buyer’s rebate.
Click here for more information on the 2% buyer’s rebate on new home builds in Texas.