Home buying in the greater Princeton area
By: Helene Ragovin
Your dream house: Is it a distinguished old charmer on a tree-lined street? Maybe it’s got a pedestal tub and octagonal tile in the bathroom, Arts and Crafts woodwork, glass doorknobs or any number of elegant period details.
Or, maybe it’s a spacious, freshly minted house in a new development, complete with a Jacuzzi in the bathroom, state-of-the-art kitchen and an Internet-ready home office.
For many home buyers, the answer is easy – they know from the start whether they want new construction or an existing property. Yet others aren’t so sure.
Older homes in established neighborhoods – especially those in the high-end market – can offer a sense of history, and are particularly appealing to buyers who have an interest in specific architectural or design styles. These properties often come with landscaping and some decorating already in place. There are fewer start-up costs than with new construction, and buyers can see every inch of what they’ll be getting before they buy, lessening the chance of surprises or disappointments. And, it can be a fairly quick turnaround from contract to closing.
New homes feature what today’s consumers desire, from high ceilings and open floor plans to second-floor master suites and first-floor au-pair suites. They tend to be more spacious and well-lighted than older homes, and they likely won’t need any serious upgrading or renovations for some time to come.
In central New Jersey, real estate professionals say the choice between old and new often revolves more around "where" than "what." With few open lots left in Princeton Borough, and land disappearing quickly in Princeton Township, home buyers are finding their selection depends primarily on the importance of a Princeton location.
"If somebody really wants to be in Princeton, if being able to walk to town is important, then probably a resale fits into their plans," says Anne Kearns, vice president and manager of Prudential Fox & Roach’s Princeton office. As you move farther from the borough, more choices for new homes, "with bells and whistles," open up, she said.
"Geography is a significant factor," agrees Maureen Penta, senior vice president and general sales manager for Gloria Nilson Realtors/GMAC Real Estate.
"If a consumer wants a particular township, they have to make a decision based on the availability of the type of home. If they’re coming into Princeton, and they also absolutely want new construction, then they would have to make those compromises that all home owners have to make."
Many buyers want Princeton Borough for obvious attractions, such as its proximity to the university, downtown shopping and the train station. Cultural attractions like McCarter Theatre and restaurants also draw some buyers, particularly young professionals who don’t yet have children, and empty-nesters – who, in some cases, are returning to the borough after raising their families in Princeton’s "suburbs." These are the folks who know they’ll be looking for an older home.
"In Princeton Borough, there is no new construction; it was built out decades ago. Except for the occasional lot that has popped up over the last five years, there’s no development," said Pamela Parsons, marketing director for N.T. Callaway Real Estate. "If you want to live in the borough, it’s not going to be in new or newer construction; it doesn’t exist."
"In the township, there are a few more options," Ms. Parsons said, citing recent developments such as Toll Brothers’ Ettl Farm. Yet, "within two years," she predicts, "if you want to be in Princeton Township, you’re also going to be looking at older construction."
For buyers willing to consider locations outside Princeton, the new developments – and some more decision-making – come into play. "There’s a small minority that goes out, and the only thing they want is a new home," said Ms. Penta, of Nilson/GMAC. "There’s always that, just as there’s a whole group that won’t even consider new homes." Then there are those in the middle, and that’s where the real estate professionals come in. They can help their customers decide what they really want, Ms. Penta said.
Making the choice, Ms. Penta said, "is a very, very personal decision, and it’s not always a matter of a checklist."
Most customers have an idea of what they want early on, said Ms. Kearns, of Prudential. But, "some are not so sure, so we’ll show them a mixture, and usually after we’ve worked with them for a day, shown them a little bit of resales versus new construction. By the end of the day, they have a better idea of what they want."
Timing is an important consideration. It can take from 30 to 60 days to close on a resale; waiting for a builder to finish a new home or to build a custom home takes longer – in the case of the custom home, sometimes up to a year, salespeople say.
Also, choosing a new home involves a considerable amount of decision-making: choosing floor plans, colors, accessories, etc. For some buyers, that’s the fun of getting a new house, and they specifically want their new home to reflect their tastes in every way. Others don’t want the headache of dealing with every little detail, or find the process overwhelming.
And, while new homes are prized for their up-to-date features, many older homes have been renovated and upgraded over the years to reflect more modern tastes. "What happens is that a lot of the inventory was built in the ’30s, ’40s or ’50s, but over the years it’s had renovations," says Ms. Parson, of Callaway in Princeton. "People realize real estate in the Princeton area is a really good investment, bringing elements of their house up-to-date makes a lot of sense."
Judy Williamson, the district manager for Coldwell Banker’s new homes division in Princeton Junction, mentions four reasons why buyers choose new construction. She calls them the design factor; economic factor; social factor; and artistic factor.
Design factor
People tend to want things in a new home that they haven’t had in their present home: top-of-the-line updated kitchens, media rooms, finished basements and walk-in closets. The floor plans in today’s new homes allow for lots of "bonus space," which most older homes don’t have, Ms. Williamson said. Often times, older buyers, who have lived for 30 or 40 years in their present home, are eager to get all the "gizmos" they’ve been missing, she said.
Economic factor
In appraisal terms, older homes can be near the end of their "economic life," Ms. Williamson said. Sometimes, it can cost less to knock down an existing house and re-build from scratch than to update an aging property, she said. While this practice is more common in northern New Jersey, central New Jersey agents report seeing the occasional knock-down. Also, new homes will come with new appliances and equipment, as well as a warranty, staving off the cost of replacements and upgrades, Ms. Williamson said. And, the appliances are likely to be more energy-efficient than older models.
Social factor
This is most important for young families, who are usually looking to live in neighborhoods with similar families, and want to have other children around for their children to play with. These buyers are usually attracted to new-home developments. (The same goes for the other end of the spectrum, with seniors and empty-nesters moving into active adult communities, so they can be surrounded by others with similar pursuits and interests.)
Artistic factor
Ms. Williamson calls this the "if they could see menow" factor. Buyers who already own a house and are "moving up" tend to look for properties that will confer a certain degree of prestige: For example, she said, the former first-time buyer in Hillsborough will look to move to a new home in Princeton Township or Hopewell. These buyers, often people who have earned money on Wall Street or through the high-tech boom, are looking to reward themselves with a "starter castle," and look for features such as private clubs and golf courses found in new, high-end developments.
While touting the benefits of new construction, Ms. Williamson said it may not be the best choice for "relocations," families moving to the area because of corporate transfers. These buyers often can’t wait for a new home to be finished, and they need the quicker turnaround of a resale.
But, says Ms. Parson, of Callaway, new construction – or a very young resale – can be appealing to corporate customers who know they may only be in the area for two to five years, and want a home that won’t require too much upgrading or maintenance over the short-term.
"They won’t have to be refinishing floors, putting on a new roof, getting into renovations," Ms. Parsons said. "They’re pretty well assured that when the time comes to sell, the house will be in good condition, and if it’s in a good development, it will move rather quickly."
Of course, in today’s lightning-quick real estate market, both new construction and resales are moving briskly, agents say. Both 5-year-old homes and 75-year-old homes are being snatched up.
"I don’t see a whole lot of difference in terms of time on the market," said Ms. Parsons. "If you have an older home in a great neighborhood, well-maintained, it will go just as quickly as newer construction. "That bespeaks of the popularity of Princeton as a place to live, the wholePrinceton area," she said. "Each category (new and old) does equally well, there’s always someone for each."