Tuesday, May 20, 2014

Buy New or Buy Existing Northern Virginia Real Estate?

To buy a new home in Northern Virginia or buy existing, that is the question for many homebuyers in today's real estate market. And while both have homebuyers that love them, it seems more Americans are interested in newly-built homes.

In a survey from Trulia earlier this spring, over two thousand homebuyers were asked about their preferences for new homes versus existing. The survey found that twice as many people prefer new homes over existing— 41 percent to be exact. Only 21 percent were found to prefer an existing home, while 38 percent reported having no preference among the types of properties.

But despite the fact that homebuyers may seem to prefer newly-built homes in Northern Virginia, they do need to be aware of the significant difference in price. Accordingly to the National Association of Realtors, a new home is generally priced around $290,000, while existing homes may cost closer to $198,500— that's a price increase of 50 percent!

The difference in prices may indeed be attributed to the sizes of the two properties, with newly-built homes being larger than the typical existing home. "The typical new home tends to be in lower-price-per-square-foot neighborhoods than the typical existing home because the priciest metros and expensive neighborhoods tend to have less single-family home construction," reported MSN Real Estate.

So will more Northern Virginia homebuyers spring for new homes this year? It seems unlikely. The survey also found that while these people may prefer a new home, only 46 percent of them would be willing to pay the extra price. Among those who reported they "somewhat preferred" a new home, only 36 percent admitted they would pay extra for it. Taking both into account—a homebuyer's preference for a new home and their willingness to pay— it was found that just 17 percent desire a new home and are ready to pay the 20 percent difference in price.

Are you looking for a new home (or existing) this summer? I'm happy to provide you with a list of properties that fit the bill. Contact me today to discuss which new and existing properties in Arlington, Alexandria, McLean, or Annandale are available for you.

I happily serve the areas of Alexandria, Annandale, Arlington, Burke, Centreville, Chantilly, Clifton, Fairfax City, Falls Church, Great Falls, Herndon, Lake Ridge, McLean, Mount Vernon, Reston, Rosslyn, Springfield, Tyson’s Corner and Vienna.

Earle Whitmore

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