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Crown Homes will be building homes in Morning Mist, Phase 4 this spring (Simpsonville). They have already constructed a model home on the main entrance to the subdivision. That street (a cul-de-sac) has orginal homes from 2002/2003. The new model home is priced around $100k more than the average of the homes on that street (but also nearly twice the square foot!).
So my question is, since Crown is building 99 more of these homes, will that affect the value of the older homes in the same subdivision?
Also, since it will take several years for Crown to build and sell those 99 homes, will it be more difficult to sell an older home, or will the lower price of an older home be an incentive to buyers? Morning Mist is supposed to be a "desired" subdivison.
I would think no. It may make it a bit harder to sell the older homes, too, since the newer homes might make the buyers looking in the neighborhood see the age of the older homes more clearly.
New homes will always sell better than the older homes but the high price is just a trap to get people to take out more debt.
Well since we are supposed to compare apples to apples the older homes will be just that, older. A lot of people buy with emotion. When you go into a brand new model it is always decorated beautifully & looks amazing. When you decide to build your home often times you find out that those extras cost you extra. I have not worked with Crown & am not saying that's what they do.
Speaking personally, the presence of newer, larger homes in the neighborhood would actually make the older homes a little more appealing to me, due to the attractiveness of the surrounding community. Just my $.02.
Price per square foot also enters into the equation. New (less depreciation) of the same size and features should be slightly higher but variations will occur in the market depending on how well the older home has been maintained and what sort of upgrades may have been added
You never want to have the most expensive house in a subdivision. The values of the lower end houses will drive the value of yours down when it comes time for an appraisal!
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