Buying New Homes vs. Resale

Steve Zurier from Hanley-Wood pointed this link out to me the other day: http://www.lennar.com/build/buildhome.aspx

We both agreed that it was a good idea for a builder to have something like this on their website.  We know the real competition to Pulte and DR Horton is not Centex or Lennar.  Their real competition is what most homebuyers buy, resale housing.  So, why don’t builders try to do a better job of selling the benefits of new housing?

My opinion, 15 years ago there was not a huge difference.  You gave up proximity and big trees for new and the power to choose.

Today it’s different.  New homes are simply better than existing housing and in many cases retrofitting is not really an option. Let’s highlight just a few things that you generally could not get in new housing just 10 years ago, that are all but standard today:

• House wraps like Tyvek from DuPont to improve heating and cooling efficiency.
• Hugely more efficient HVAC systems
• Low energy glass to save even more energy
• Cat 5 wiring to connect your home
• Widely available roof tile products that are affordable
• Siding products like Hardi Plank that are low maintenance
• Better foundations, smart airflow, and healthy home options

On the option side there are even more items to put into the walls that are only relevant for new housing.

So, it’s time for home builders to unite to acknowledge the advances in housing that make buying new better than resale.