If a builder were writing this article, the reasons he may cite to buy a new home instead of a re-sale would literally spill off the page and fill up a book. It is during this time that the new home can have the most appeal, and grow with its surrounding area and economy. This is when depreciation begins to add to the equation. However, one or two buyers willing to invest in updating their homes in a given neighborhood may not be enough to convince an appraiser that the entire neighborhood is as concerned with keeping the values up. By now new home builders have so significantly changed features, energy efficiency, and floor plans to suit the buying public's emerging lifestyles that a major re-model of an aging home may need to take place, should the occupants be interested in getting top dollar for their home.
Appreciation becomes an issue primarily when selling or refinancing a home.
Neither of these issues may be of significant importance to those wishing to stay put through retirement, have a tolerable interest rate for their home loan, or own their homes outright. Without a crystal ball, however, it is difficult to tell when homeowners may need to sell, accept employment relocation opportunities, or decide to downscale as their families grow up and move out. This is why homeowners tend to remain concerned with their investments in terms of value and future value. New homes carry better and better new home warranties as products improve and builders feel increasingly confident in them. Structural problems in a house can be the source of a myriad of problems, but I prefer to liken the idea of a structural problem to a picture one can conjure up fairly easily.