Buy or Build a Louisville Home?
Purchasing a new construction Louisville home can be riskier than buying an existing home in an established Louisville neighborhood, but there are multiple advantages and disadvantages to both. Here are a few things you may want to consider:
- Your neighborhood options are more limited with new construction as opposed to an existing home.
- When building a home, there are many decisions to be made--it can be a time-consuming process. However, an existing home may not include the upgrades you prefer.
- You may have to live in temporary housing if you build. With an existing home, you can typically move in shortly after the closing.
- Another factor consumers often overlook, with an existing home you may not have to incur the costs of landscaping and window treatments, unlike a new home.
You will generally find that resale homes have an edge over new homes, but with a shortage of inventory more buyers are opting to build their Louisville dream home.
There are multiple factors that will determine the increase in home values. Some Louisville neighborhoods tend to appreciate faster than others. When you are shopping for an existing Louisville home, you will want to be sure the home you choose is in good condition. If not, be prepared to make improvements so that everything is in good working order shortly after you move in. These costs for improvements need to be factored in your purchase price. Size and layout are important factors. An open floor plan is more desirable than a home with boxy rooms. Historic homes in Louisville are popular. A Louisville historic home in good condition typically sells higher than a home a few decades old; for example, a 100 year old home will likely have more value than a 40 year old Louisville home.
Determining the Value of a Home
Ultimately a property is worth what a Buyer will pay for it. The best ways to determine the value of a home is through a Comparative Market Analysis provided by a professional Louisville realtor or an appraisal, performed by an Appraiser. Both of these professionals will determine the value by researching recent sales prices for comparable properties in the area. As you view homes with your Louisville realtor, you will begin to become knowledgeable on the value of Louisville homes by comparing properties. Once you find a home that you want to make an offer on, your Louisville realtor will provide information on comparable properties that have recently sold to help you determine your offer price.