Is it cheaper to buy a second-hand home? Is it worse quality?

Are you more at risk of buying a used apartment than a new home?

Experts respond.

In the world of home shopping there are some popular beliefs such as that new houses are of better quality or that the used home is more economical. However, these claims are not always entirely true. In fact there are myths of this kind that are generally meaningless falsehoods. So considering that it will possibly be the biggest investment of your life and you may be cying you to a lifelong mortgage it is important that you correctly evaluate all the data of this operation.
The truth is that despite these prejudices located in the depths of the collective imagination the reality is that in Spain the sale of used housing predominates over that of new construction.
In fact, according to INE data, the total purchase and sale of homes made between January and September of this year (384,813 operations), 81.6% (314,133 operations) correspond to used housing. New housing, on the other hand, accumulates only 18.4% of transactions (with 70,680 operations), but reflects growth of almost one point compared to the same period of the previous year (17.5%).
with the actual industry data until we dismantle these five myths:

1. It is said that “buying a second-hand home is cheaper”. Is this true?

Well, you don’t have to. It will depend on how the house is and how we want it to enter to live. In most cases the price of new housing is higher than that of second-hand homes, at least in terms of price per square meter. However, the housing used may go more expensive at the end.
Therefore, to really know how much the property will cost, we must take into account the budget that will be dedicated to reforming it and to the customer’s liking, both in distribution of spaces and in materials and other resources, in addition to the expenses associated with the purchase and maintenance that entails each type of housing. And then, then, compare.

2. Many people think that “it is difficult to mold a used home to the taste of buyers”.

And a new one is easier? Because new construction homes do not allow the buyer to customize distribution or materials by buying on a plane and if the brand new house is already built, it cannot be significantly altered either. If you want to mold it, you can through reforms, a solution that can also be applied to used homes. What is true is that new homes can be customized, more and more often and always before the works.

3. It is often thought that “new homes have better quality”.

Well… this factor depends on various variables such as the years of age that the housing has used, the number of inhabitants or tenants that has had, the way in which it has been cared for by its former owners or if any kind of reform has been made.
Therefore, what buyers should most look at is whether the facilities are in line with their requirements and what is the state of conservation of the building in which the house is located, since, if it is in bad condition, it could lead to a subsequent spill.

4.It is also believed that “the supply of used housing is greater than that of new construction”.

There are now more second-hand homes in the Spanish market, but the construction of new properties has continued to increase since the beginning of the real estate recovery in 2014. In fact, between January and August of this year, authorized new construction visas for residential use in Spain reached 73,685 units, 8.2% more than in 2018 (68,044). On the other hand, the housing used is usually located closer to the center of the cities while the new house grows towards the periphery which is where there is space to do so.

5. Another thing that is often believed is that “the purchase of used housing takes more risks than new housing”.

And this is true? Unfortunately, deception is always an option that is on the table when it comes to making any real estate transaction. That’s why it’s very important that if you’re really interested in buying a home, you do an in-depth investigation of the seller. Whether it’s new construction or second-hand construction.
In the first case, it will be necessary to know what is the construction company and know its history, especially when the acquisition of the house is done on a plane. And there have been cases where construction companies do not deliver the properties in the promised deadlines or even never finish the works, causing buyers to lose their investment and that is why it is recommended to be sure that all the terms are clear and that the seller is trusted. For its part, in terms of used housing, it is advisable to be aware of the legal status of the property. In both cases, it is important to read the contracts in detail with the support of a lawyer or specialist.