We often work with homebuyers who are trying to decide between a new construction home and a resale. There are many advantages to putting your investment in a new home—no repairs, replacements, or upgrades needed and more energy efficiency, to name just a few benefits. But there’s a lot more. Why buy new? Homes By Taber thinks you’ll appreciate the better appreciation, too.
As your home appreciates in value, your equity increases, too. That’s an important consideration because a home IS an investment!
Lack of activity = lack of appreciation. In a neighborhood with existing homes that have been there for awhile, the resale values will only increase to the selling price of comparable homes in that community. There’s no new construction to increase property values.
Conversely, when you choose to buy in a growing community, your home’s value will appreciate in pace with the comparable homes here. The new homes that will be built in the future will be priced higher, as the cost of building materials and labor continues to increase. At Homes By Taber, we make it our goal to absorb the costs, as much as possible, so that we can keep the prices of our homes to a fair market value. Prices of the homes are gradually raised to soften the increases and allow homeowners the ability to gain more equity. The sooner you purchase in a Taberhood, the more equity our homeowners see in their homes over the course of the neighborhood.
If you buy your home for $250,000, for example, and a year or two later, new construction, comparable homes (“comps”) are selling for $300,000, your home’s value increases proportionately to those homes. In a neighborhood with no construction activity, what’s going to boost resale values?
Not only do we establish the comps in the neighborhoods in which we build, our homeowners do so as well. Our homes already reflect Homes By Taber’s “Proudly Overbuilt” standard for superior included features. Still, homeowners throughout our neighborhoods add enhancements that elevate the value of the homes even more. The overall quality of a community impacts the sales price, Taberhoods are known for being “the” place to live in the Oklahoma City metro area and homes sell quickly.
Land appreciates, too. Buildable land is limited, which contributes to the property value. Buying in an earlier phase costs about $5,000 less than a homesite in a newer phase. As new phases are added, lot prices go up. The increased value of the land your home is built upon is positively affected by the lot prices in that community. Also, available homesites with increased premium prices bump the value of those lots that did not have a premium price attached. Basically, when you’re in good company, you benefit!
Investors aren’t good neighbors. In some new neighborhoods, builders primarily sell to investors. This scenario doesn’t help the property appreciation in that community. Those investor homes are primarily leased out, and the going rate for rentals does nothing for your property value. It only benefits other landlords. Values can decrease over time for the homeowners when a majority of the neighborhood is comprised of investment properties. Homeowners can rest assured knowing that it’s very unusual for Taber homes to sell to investors. Investors are typically looking for lesser homes and our homeowners benefit from Taber homes not fitting that criteria.
Beware of “incentives”. When you see a builder advertising special offers and reduced pricing, you should wonder about the motivation. They are clearly having difficulty selling their homes. These deals are not incentives or discounts, but rather price apologies for a home that was overpriced to begin with. Imagine you bought a home from a builder at the listed price. Six months later, comparable homes are selling for tens of thousands of dollars less. What does that do to your home’s value? The builder decreases the value of the neighborhood and cuts into the homeowner equity for the existing homeowners.
Before you decide on an investment as important as a new home, talk to a qualified expert, like an educated Realtor. This professional can offer tremendous insight into resale values.
At Homes By Taber, we have a profound respect for our homebuyers. We’re committed to them for the long-term so every decision we make is evaluated by how our homeowners will be affected—those who are looking to buy a home as well as those who already live in one of our communities. Let us help you find the home that fits your dreams and delivers the value you expect.
About Homes By Taber
Homes By Taber, a local homebuilder in the Oklahoma City metro area, offers new, energy-efficient homes starting at 1,500 square feet of indoor living space and going up to 3,350 square feet of indoor living space. Prices for these new construction, single-family homes start from the low $200,000 and go up to the mid $500,000 range. Homes By Taber was founded in 2000 by Taber LeBlanc. We currently build in 15 different locations with new construction homes for sale in the OKC metropolitan area.