Buying a New Home vs. Buying an Older Home

When purchasing a home, you have two choices, buy a home that is already built, or build a new home. They both have their advantages and drawbacks, and hopefully I can give you some insight into the advantages/disadvantages of both. I have been selling homes in Logan, Utah for the last 9 years, this is some expertise I have gathered along the way.

Advantages of buying an older home:

Larger Building Lots - With the amount of land available dwindling by the day, homes that were built years ago come with bigger lots. This especially holds true in larger cities, the bigger the city, the less room there is to build. If you want a bigger lot, most the time you are going to have to live in the country, and the price of land is only going to go up.

Price Per Square Foot - In older homes, unless they have been updated, usually come at a cheaper price per square foot. If you want more home for the money, buying an older home, and updating it yourself could be a sound investment.

More Character – Older homes come with character, and I have noticed when selling homes, younger couples like older homes because of the character. They feel more rustic and an older home feels comforting, it makes you feel like your back home when you were younger.

Mature Trees And Vegetation – Older homes have had time to settle in and the landscaping is well into it’s prime. An older home with large trees, mature plants, and a well groomed yard can create great value.

Disadvantages To Buying An Older Home

Maintenance - As a home ages, appliances age to, as well as other things. If you want your home to maintain value over time, it’s key to keep up on routine maintenance, and if you don’t, you could see your home falling apart before your eyes. No one likes a leaky roof and adding new shingles is one part of routine maintenance.

Wiring And Plumbing – Depending on how old a home is, these two key elements to a home could become a major nuisance. If you buy an older home with bad plumbing, leaky pipes, or frayed/old wiring, you could expect yourself to put a lot of money into fixing these problems.

Outdated - When buying an older home, if you want to resell it, you are probably going to have to do some updating to get a good price. In today’s real estate market, it’s very competitive, and an outdated home is extremely hard to sell. (However, an outdated home that is updated can create some instant equity if done right.)

Advantages To Buying New Construction

Less Maintenance - One of the main reasons to build a new home is the maintenance factor, you won’t have to worry about putting up new shingles or buying a new furnace anytime soon.

Warranties – Most states have a warranty program that requires builders to warrant their work for a certain number of years. In a new home the appliances should all have a warranty on them as well, so if something does go wrong, it shouldn’t be an out of pocket expense.

Modern/Up To Date - Most new homes come with all the fixings, new appliances, air conditioning, modern cabinetry, and new carpet. Newer homes are also held to a higher code that wasn’t around when some older homes were built. As they say, newer homes are more “Green” then older homes.

Energy Efficient - Speaking of Green homes, new homes come with newer appliances, which are more energy efficient. A new home will also have newer insulation which will make the homes themselves more energy efficient.

You Get What You Want – When building a newer home, probably the biggest advantage is customization. You get to choose if you want upgrades, what upgrades you want, and how the home will look; including floor plans, exterior, interior, and the landscape.

Disadvantages Of Building A New Home

Conformity – A lot of newer homes look similar, especially if they were built by the same builder, or in the same community. A lot of builders have a few homes they build, and they just add little things to them to make them look different, but the floor plans are generally the same.

Immature Trees And Vegetation - The last thing to be added to a new home is the landscaping, and sometimes people don’t plan for it. I have seen people build new homes, and not get around to the landscaping for years after the home was completed.

Time And Money – Building a home takes time, unless your using Extreme Home Makeover, it’s going to take months to build your new home. Building a new home can also have unseen costs, which is why it’s important to pick a reputable builder that won’t add extra costs during the construction of your new home.

Finding A Great Lot - After you decide you want to build a home, you will have to find land to put it on. Great lots are expensive, and finding one that is within your budget that has a great location can be tough.

Whether you’re looking to buy a new home or an older home, do your home work, and find a good builder/real estate agent that is going to look after your best interests. Good Luck!

Article written by Lisa Udy. We found it HERE.