Atlanta Real Estate: What is going on in your area? (East Point: insurance, mortgages)

[plessthanpointohfive]

Please don't try to insinuate something about my intelligence and intellectual ability because that's ridiculous. I

What I said is the truth, technically. I also said it tongue-in-cheek, hence the cheesy grin ->

And no matter how things are going with sales in your townhome complex it is absurd that a tiny bit newer home would sell over an identical home that had a person in it for a year. I know it happens, I am not denying that. I am just saying it's absurd. I wonder at why people buy in these places when it's well known this happens? I mean, unless you know you're going to live there well past the completion of the last unit it's a losing situation....

[Iconographer]

Originally Posted by plessthanpointohfive

And no matter how things are going with sales in your townhome complex it is absurd that a tiny bit newer home would sell over an identical home that had a person in it for a year. I know it happens, I am not denying that. I am just saying it's absurd. I wonder at why people buy in these places when it's well known this happens? I mean, unless you know you're going to live there well past the completion of the last unit it's a losing situation....

Pless, what criteria a buyer brings to the table as far as buying a house goes is boundless IMO...that is evident from what I experience on this forum...you and I are pretty 'simpatica' as far as what we love...charm, history, heritage, 'patina' and potential. Others feel quite differently, and fortunately there's plenty out there on the market to meet their needs as well.

[plessthanpointohfive]

This would be very, very true. But I still shake my head in wonder and bemusemebt at those who don't think re-sale....or those who buy a house while knowing there is great potential for moving within 5 years...

[RainyRainyDay]

I'm full of sympathy with Pless the mathematician here. Absolutely, in general, comparisons of old houses here and new houses there are full of tangible and intangible factors weighted differently by different buyers and sellers.

But in the case of a new townhouse development, where all the units are so much the same, it's an affront to logic that a brand-new unit would be worth a really large amount more than a one to three year old unit in the same complex. How can that be? Don't home buyers normally expect their home to hold value or appreciate, so long as it's adequately maintained? Everyone knows that new cars depreciate rapidly, and people who buy new cars are willing to live with that, but we don't expect our homes to depreciate like new cars, do we? That's the whole point of the new car comparison - homes aren't supposed to be like cars, in most peoples' thinking.

If a new home really became "old" all that fast, Bob K's extra time with his kids (thanks to not having to do maintenance chores on his new home) is going to expire pretty darned soon, and Bob will be right back in the old-house grind he described. But I really think Bob doesn't expect his nice new home to be a grungy old home by the time he's owned it three years. That's what seems so odd about the phenomenon pointed out by spacelord75.

[spacelord75]

Yowzers....didn't think this would blow up so much! You guys were hitting on exactly what I was getting at. I am not sure why BGS99 is getting so bent out of shape about this, although I understand what his point is about buyers dictating market value. His taking offense or arguing about the car analogy, though, is incongruent with reality however, because that analogy was spot on in this circumstance. Also, while the brand new construction may carry a value to the buyer, the reason why it would be an imprudent INVESTMENT is because it has obviously already lost value (evident by the comparable assets, which are now basically all equal). It is very similar to a car, in fact - the loss one would experience on selling a car they purchased "new" versus "pre-owned" is larger. This is the same case here. Yes - YOU may get more value out of the newer home (value = enjoyment on a person by person basis, assuming you are so inclined) but you must also obviously then understand that your loss will be more substantial than if you had purchased the pre-owned/resale property instead. This is where pure logic would say this is a poor investment.

[spacelord75]

And yes, I was referring to a situation where all townhomes were identical floorplans built within 1-3 years of each other, with minimal deviations in upgrades/appliances/etc.

[BobKovacs]

Originally Posted by spacelord75

And yes, I was referring to a situation where all townhomes were identical floorplans built within 1-3 years of each other, with minimal deviations in upgrades/appliances/etc.

While we can debate what's "smart", "right", "sensible" or whatever all day, if I have the choice between buying a brand new house thats exactly what I want, with a full warranty, rather than one thats a few years old with someone else's colors, dinged up walls, scuffed floors, weathered deck, etc., I'll take the brand new house hands down. Others may disagree (obviously), and would rather buy the used one that's already got the window blinds, the fence, etc.- and that's their perogative.

[plessthanpointohfive]

Bob, I think you're talking about something else. A custom home is always the best choice, if you can afford it. Custom homes, as long as they're not so custom as to be weird, are usually good investments. They're better quality, usually, and unique.

[BobKovacs]

Originally Posted by plessthanpointohfive

Bob, I think you're talking about something else. A custom home is always the best choice, if you can afford it. Custom homes, as long as they're not so custom as to be weird, are usually good investments. They're better quality, usually, and unique.

I'm not talking about custom- I'm just talking about being able to walk into Pulte's sales office and make the cabinet/countertop/tile and other option selections that I want, rather than having to buy what someone else put together.

Another thing to consider as well- given the recent drop in market value, in some cases you can actually buy a new house for less than what people paid for the 1 year-old house down the street. So, unless the seller is willing to take a beating on the price, plus eat a 6% loss on commissions, you're not likely to really get a bargain buying a house that's only a year or two old if you're buying in a subdivision that's still being built out.

[plessthanpointohfive]

I guess in times like these it's probably not the best investment ot buy in a subdivision that's NOT built out and mostly sold.....