Anything new usually carries the buzzwords "cutting edge", "latest technology", "best design yet", and "ground floor opportunity". Used seems to connote "established", "mature", "time-tested", and the impression that buying something with previous experience evokes the adage "they don't make 'em like they used to".

But how does this apply to homes? Real estate industry experts may disagree, but either camp can convincingly make its point. Home building, however, is a part of our way of life that can stir up the very essence of what makes up the American dream. It's the pioneers with their homesteads; the immigrants and "squatters" cutting out a part of the forest with fresh logs to house their families. It's the "Go west, young man" mentality that helped to create a nation teeming with innovation and pride in its newness.

If a builder were writing this article, the reasons he may cite to buy a new home instead of a re-sale would literally spill off the page and fill up a book. I will cite only a few, but substantial ones here, in hopes it creates "food for thought" for those home buyers that are literally up for grabs and are trying to decide whether to buy a new or used.

APPRECIATION

Residential real estate experiences a life of its own, similar to the growth of an individual, many experts agree. The first seven or eight years are usually its "formative" years, where the most appreciation can occur. It is during this time that the new home can have the most appeal, and grow with its surrounding area and economy. The second stage may be referred to as the "maturation" period. This can extend into year 16 or so, and may find the now "not so new" home stabilizing in terms of appreciation. This is when depreciation begins to add to the equation. The home's features and trappings can begin to look "dated" and some items may need to be replaced, such as roofing, flooring, carpeting, etc. Keeping up with these items as the years go by may very well help buyers hang on to a good chunk of the original appreciation from its first few years. However, one or two buyers willing to invest in updating their homes in a given neighborhood may not be enough to convince an appraiser that the entire neighborhood is as concerned with keeping the values up.

Years 16-35 are sometimes referred to as the period of "built-in obsolescence". By now new home builders have so significantly changed features, energy efficiency, and floor plans to suit the buying public's emerging lifestyles that a major re-model of an aging home may need to take place, should the occupants be interested in getting top dollar for their home. Appreciation becomes an issue primarily when selling or refinancing a home. Neither of these issues may be of significant importance to those wishing to stay put through retirement, have a tolerable interest rate for their home loan, or own their homes outright. Without a crystal ball, however, it is difficult to tell when homeowners may need to sell, accept employment relocation opportunities, or decide to downscale as their families grow up and move out. This is why homeowners tend to remain concerned with their investments in terms of value and future value.

WARRANTY

New homes carry better and better new home warranties as products improve and builders feel increasingly confident in them. The first two years of a new home warranty may cover almost everything from appliances to carpeting, to heating and air conditioning systems (heavier on the first year) and the first ten years usually carries a required ten-year structural clause. Structural problems in a house can be the source of a myriad of problems, but I prefer to liken the idea of a structural problem to a picture one can conjure up fairly easily. Imagine you are standing at your kitchen sink, and one foot literally feels to be on higher ground than the other. Looking down, you see a ridge in your vinyl as if an earthquake may have happened under foot. This is a structural problem. It can be caused by a number of reasons, ranging from erosion of the grading of your property, to the shifting of cobble beneath the structure. A concrete slab whose curing process may not have been up to snuff may require the builder to hold its concrete sub-contractors feet to the fire to repair the slab if it is within its warranty period. (Raised sub-floor carries some different issues) Dealing with it, as most would agree, can be a nightmare. When a home is past its first decade or so and has changed occupants several times, recourse to address problems such as this is difficult to pursue, and you may literally be out thousands of dollars when all is said and done to fix it. Although real estate laws have been progressively designed to protect the consumer, with disclosures abounding in real estate contracts throughout the country, "caveat emptor" (let the buyer beware) remains inherently implied in buying real estate. The new home buyer is simply more informed about his new home community and structure because of the amount of disclosure builders are required to supply, that there may indeed be lessened risk-taking in buying a new home.

BETTER PRODUCT

Up to date technology in construction, more and more timely inspections required by city and county entities, and features that reflect consumers' changing needs are showcased in new home construction. Builders want protection from defect litigation by enlisting suppliers who help eliminate warranty work in general.

Requirements to increase energy efficiency by local utility companies literally force builders to find new and better ways to lower your utility bills and save the environment at the same time. Many new homes are now equipped with dual-paned "low-E squared" glass, likened to putting sunglasses on a new home, providing more energy efficiency and less fading to furniture, cabinetry and carpeting in brutal sun-exposure areas. The newer vinyl frames are less prone to leakage from moisture and air, provide more noise abatement for the home's occupants, and even glide more easily than aluminum or wood frames. Innovations such as these in new home construction can contribute to a lower budget for utilities, less frequent home repairs, and more peace of mind in the long run. Innovations in insulation, trusses, and dwelling integrity continue to be showcased at major builder conferences nationwide, adding to the appeal and quality going into new homes.

YOUR PRIDE OF OWNERSHIP

It's new and it's yours and no one else has ever laid claim to it. A new home is primarily an expression of its first owners. Options to the floor plan, colors and materials chosen to decorate it, and even the excitement you feel during your walkthrough with the builder, make up a snapshot of you and you alone. No one else's cooking smells, cigarette smoke, or family squabbles ever took place in your new home. The pride you take in fine-tuning your home's trappings and landscaping the first few years adds to its character and fills up your photo albums. The neighborhood is filled with people reflecting much of the same pride and concerns for the future of the neighborhood that you have. A natural commonality created by everyone being literally in the same boat at the same time (putting in their backyards, pools, or enhancing their new homes) breeds a rapport unlike established neighborhoods. This is your history and of those around you, creating your own homesteads and taking pride in either your beginnings or your accomplishments. It is a place where Thanksgiving dinners, new babies, the eventual empty nest, and family memories are happening for the first time.

Buying a home is, of course, a very individual and very emotional decision for most people. Whether to buy new or used will continue to be a topic of discussion for perpetuity, and there hasn't been a better time to buy in the past decade than right now. Interest rates are enticingly low, a robust economy, not relying on shaky ground for recovery from past mistakes, and consumer confidence all add to a good feeling about the future, in many buyers' estimations.

In the building industry, however, most professionals will smile when asked why to buy a new home instead of one with previous experience. "Well," they'll smugly reply, "because it's new!"

Published: October 16, 1998

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