What is a better investment: purchasing a previously owned Austin Home or new Austin Home?

The Austin real estate market has thousands of previously owned and new homes for sale. Prior to making your decision it is highly recommend you evaluate the entire market of homes, both new and existing properties.

One of the key factors is estimating how much will the market grow and appreciate over the next few years and how much risk you are willing to assume. While the new homes market may seem like a riskier investment than the purchase of a property in an existing neighborhood, any increase in the value of the home depends on the same factors:

• Quality of the homes for sale and their neighborhood
• Growth in the local real estate market
• State of the overall economy

One survey by the National Association of Realtors shows that resale Austin homes do have an edge over new homes for sale. The real estate trade group's figures show the median price of resale homes increased 7 percent between 1998 and 1999, compared to 2.8 percent for new homes for sale in the same period.

Prior to finalizing your decision you should consult an Austin Real Estate Agent who can provide you information on the current trends with the new homes market and the resale homes market.

Austin Texas Real Estate - Getting the real scoop on Austin homes for sale:

Real estate home inspections, seller disclosure requirements and an experienced real estate agent will help. Disclosure laws vary by state, Texas Real Estate law requires the seller to complete a real estate transfer disclosure statement. Here is a summary of the things you could expect to see in a disclosure form:

• In the kitchen -- a range, oven, microwave, dishwasher, garbage disposal, trash compactor.
• Safety features in Austin homes for sale such as burglar and fire alarms, smoke detectors, sprinklers, security gate, window screens and intercom.
• The presence of a TV antenna or satellite dish, carport or garage, automatic garage door opener, rain gutters, sump pump. * Amenities such as a pool or spa, patio or deck, built-in barbeque and fireplaces.
• Type of heating, condition of electrical wiring, gas supply and presence of any external power source, such as solar panels.
• The type of water heater, water supply, sewer system or septic tank also should be disclosed.

Austin Texas Real Estate Law requires sellers to indicate any significant defects or malfunctions existing in the home's major systems. A checklist specifies interior and exterior walls, ceilings, roof, insulation, windows, fences, driveway, sidewalks, floors, doors, foundation, as well as the electrical and plumbing systems.

The form also asks sellers to note the presence of environmental hazards, walls or fences shared with adjoining landowners, any encroachments or easements, room additions or repairs made without the necessary permits or not in compliance with building codes, zoning violations, citations against the property and lawsuits against the seller affecting the property.

Also look for, or ask about, settling, sliding or soil problems, flooding or drainage problems and any major damage resulting from earthquakes, floods or landslides.

People buying a condominium must be told about covenants, codes and restrictions or other deed restrictions.

It's important to note that the simple idea of disclosing defects has broadened significantly in recent years. Many jurisdictions have their own mandated disclosure forms as do many brokers and Austin real estate agents. Also, the home inspection and home warranty industries have grown significantly to accommodate increased demand from cautious buyers. Be sure to ask the seller and your Realtor about anything that remains unclear or does not seem to be properly addressed by the forms provided to you.