Location, location, location... It's long been a tag line of real estate - and for good reason. A good, or great, location will help a home's appreciation, and will make it far easier to re-sell. Think of the popular subdivisions in your area, where buyers and agents are always hoping for homes to come on the market.
So why do so many people disregard location when buying a brand new home?
A brand new home is exciting (just as is that new car smell). As the first owner, you're not buying anyone else's problems or questionable taste. Even if you didn't get to pick your decor, you're surrounded with up-to-date amenities. Everything is fresh and new - no nail holes to work around, no stains, no worn carpet. The paint glows and the windows don't stick.
But don't let the euphoria of a potentially owning a new home blind you to location. Many people are so enthralled with a new build, that they'll settle for lots they'd never consider in a re-sale. Chances are, some day they'll be selling that home.
Face it, lot prices are high, and land in many areas is getting scarce. Builders are "in-filling" on many urban and suburban tracts of land. This often leads to some homes in the subdivision facing or backing to areas that could pose a problem for re-sale, or maybe even make living in the home less enjoyable.
We've seen just-built homes:
- With their backs looking out to a penitentiary. Even if you work at that facility, do you want to look out on it during your time off?
- Looking out on overflowing dumpsters
- Backing up to an interstate highway which was only about 40 feet away (seriously!)
- With sleep-impacting nighttime light pollution from commercial areas
- Next to the mega utility lines or power substation
- With serious noise pollution issues, like being below the landing paths of airplanes
In some of those situations, the buyers may have been wiser to pay lot premium to buy a house a few streets over. If only a couple of houses abut the busy street, one a few lots in would be a better bet. And, in other instances, where the whole subdivision isn't in a desireable location, you may be better off with a re-sale home in an established neighborhood.
"But I plan to live in the home forever..." You can't predict the future, and this applies to views, too! Think of future construction; the view that sells you on the house may not always be there.
Now, we're not suggesting that every new home must have a large, premium, cul de sac lot with a postcard view - that's not realistic. Just that, when buying a brand new home, you look at that home with the same critical eye as you would a re-sale. And, use a Realtor! An experienced Buyer's Agent who is on your side will give you valuable guidance. We've seen too many buyers who didn't use agents end up in short-sale or repo situations because the new home wasn't the "deal" it was made out to be.
Ken and Sandy Wickham are long-time Realtors in beautiful Colorado Springs, CO. Any questions about home buying or selling in the Pikes Peak region? Call them at 719-534-7919 or 800-599-8500 ext. 1120.
Sometimes it is difficult to gauge in a new subdivision when the area behind has not been "released" yet. I was suprised at a home in St. Louis that backed to a cemetary, with only an iron fence. Their pool was right there! I would have put a wall, and LOTS of hedges at least. Good to make sure they think it all through! Thanks for the reminder.