Our Homes Have Benefits
Affordable Florida Home Can Offer You A Higher Return On Your Investment
By Tom Beaty
Apr 27, 2006, 10:42

When shopping for a new Florida home, finding a desirable property in a good neighborhood is of primary importance. But because a home purchase is such a major investment in time and money, each property’s potential investment return should be carefully considered. This means calculating how much you initially spend on a home (including sale price and any potential repair and remodeling costs), as well as projecting the potential resale value of the home should you decide to sell down the road.

The profit potential of an Affordable Florida Home

There are two choices when it comes to residential real estate purchases: you can purchase an existing resale home, or you can purchase a brand-new home. There are several variables that go along with each of these options, such as the age of an existing home and whether you purchase a new home pre or post-construction. Many of these variables will have a large effect on the resale value of a home, so you should carefully research all of your options before you buy.

So let’s say you have completed your research and have narrowed your choices down to two homes. One is an existing home, built in 1990, and the other is a high-quality, custom Affordable Florida home that has not yet been built. The homes are approximately the same size, and both are in good neighborhoods. The existing home does not have any apparent repair issues, and will require only minor renovations and redecorating. The existing home has a list price that is $50,000 less than the Affordable Florida Home.

On the surface, the existing home may seem to be the better bargain. It is of the right size and in a desirable neighborhood, plus it costs $50,000 less. But in order to determine which home will yield the highest return on your investment, and thus will end up being the ultimate “best buy”, we will need to examine a few of those variables mentioned earlier.

Will purchasing the existing home really save you $50,000?

Let’s start by taking a look at those asking prices. On the existing home, you may be able to negotiate with the seller and bring them down a few thousand dollars. But bear in mind, it is possible to negotiate with a builder as well. There are actually two ways that you can save money on a brand-new Affordable Florida Home.

First, you can purchase your home during the winter time. The low-season for Florida real estate runs from November through April. If you are able to time your purchase for some time during these months, we are often willing to negotiate a lower sale price or offer additional options and features at no charge.

The second situation where we can offer a better sale price on an Affordable Florida home is when the home is purchased directly through our sales office rather than through a realtor. A realtor charges a 3-6% commission on all home sales. If you purchase your Affordable Florida Home directly from AFHI, that is roughly $7,500-$15,000 in commission costs on a $250,000 home that we don’t have to pay, and we can often pass these savings along to you.

At this point, the initial sale price of the Affordable Florida Home may still be a bit higher. There are, however, additional factors that affect the amount of your initial investment.

Repair costs: the great unknown

You may not think a home build in 1990 would have any major problems. After all, the home is only 16 years-old. But the average roof in Florida lasts no more than fifteen years. Air-conditioning units and heat pumps need to be replaced every 5-10 years, and sixteen years is more than enough time for a home to suffer insect damage, leaks, and wood rot. All of this amounts to thousands of dollars in potential repairs.

Most home buyers hire a professional inspector to examine an existing home before they commit to buy, but even the best inspectors can’t tell for sure how well the home has been maintained, or what lies behind the drywall.

When you purchase an Affordable Florida Home, everything is brand-new. There is no need to worry about expensive repairs, because even if something does go wrong, any major repairs are covered by the builder’s warranty that is included with the purchase of any new Affordable Florida Home.

As for the remodeling issues on the existing home, even if they are minor they will require additional time and money. With a custom Affordable Florida home, you choose your own floor plan, upgraded paint colors, tile and cabinetry colors, and lighting fixtures.

Finally, when you purchase one of our new Affordable Florida Homes at a pre-construction price, you often earn an immediate return on your investment since the value of the home will usually go up before it is even completed.

And when it comes time to sell, newer homes are in higher demand, even in a buyer’s market. So ultimately, it is easy to see why purchasing a brand-new Affordable Florida home will earn you a much higher return on your initial investment than an existing home.

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