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Older Homes vs. New Homes: Which Is A Better Buy?
This question is a serious one for today's homebuyers because interest rates are
at an eight-year low, new residential construction is high, and demand for homeownership
is strong. So which is better, a new home or one that's already been broken in
by previous owners?
If you talk to homebuilders, you'll hear only about the advantages of a
new home.
Real estate agents who work with existing homes will obviously give you
a different line of reasoning.
Both viewpoints are right; both new and existing homes have pluses and minuses.
The job for a prospective buyer is to determine individual preferences and shop
accordingly.
Buying a new home: Typically, a new home will be more expensive than a
15-year-old house.They cost more, but you get more amenities. Twenty years ago
an average new home had about 1,200 square feet; today it's more like 1,900 square
feet. In 1977, the average new home had one and a half bathrooms; today, it's
closer to three.
Most new homes today are being wired for new technologies: for multiple telephone
lines to accommodate new communications and computer requirements, for electrical
wiring that supports security services; other options that simply weren't available
20 years ago.
You can pick and choose the features you want in a new home. The more you spend,
the more customizing is available.
New homes typically cost more. Constantly escalating land values and labor costs
are major contributors to this.
Looking at existing homes: If money's tight and costs rather than convenience
are a primary consideration, perhaps you should examine the possibilities of purchasing
an existing homes.
According to experienced Realtors, an existing home may be more of a bargain than
a new residence.
Existing homes usually already have appliances in place, so a buyer doesn't have
to shop for refrigerators, stoves, microwaves, freezers, and other extras which
can represent a sizable capital investment in a new home.
Often existing homes have been updated so the home has the look of a newer home
An existing home comes with "mature landscaping" which will require
less maintenance than the nurturing of new landscaping in a new residence.
Existing homes usually are in established neighborhoods. The character of an older
neighborhood is different from that of a new development. In a new development,
you don't know who your neighbors are. But in an older neighborhood, you can go
to the neighbors, knock on the door, and ask about schools, how many children
are on the block, police protection -- the important things. You know who your
neighbors are before you move in.
As a buyer, you will see a direct relationship between the care, maintenance,
and pride of the neighborhood in general and the price of the homes that are for
sale. You know what you are dealing with in terms of shopping centers and amenities
because an older neighborhood is already "built out." In new construction,
you could be unpleasantly surprised when undeveloped land near your home is sold
and used for something you don't want nearby.
The purchase price tends to be less for existing homes. You are paying for past
prices for labor and materials. Current building costs can add substantially to
the price of a new home.
Finally, existing homes offer more room for negotiation. While there is a "psychological
value" in a new home with warrants that can cover construction and appliances
for terms ranging from one to 10 years, a builder has to get a certain amount
for the house. With an existing home price can be negotiated more readily.
Proponents of both types of home purchase agree, though, that now is an ideal
time to buy since interest rates are so moderate. What you buy is an individual
choice. You almost can't go wrong either way, and you'll find that you get what
you pay for. |
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your Real Estate Specialist, our job is to help you..... help you find a
home that meets your lifestyle, location and budget requirements within
the time frame that you need to purchase and occupy the home. 
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