Old vs. New: The Tradeoffs When it Comes to Purchasing the Right Home for You

Finding the perfect home can mean different things to different people. Throughout the search, there are a number of different features, styles and architectural preferences to decide on. Among these is the decision to either buy an already built house, or to build a brand new one.  

While both new homes and old homes each have their own charms, it’s up to each individual buyer to decide what the right route is for them and their situation. This decision can be guided by a number of things, including their risk tolerance, their budget, and even the location they’re wanting to move to. Below is a list of some of the pros and cons of older homes vs. new builds that, for those debating, may be able to help with the decision making process:

Budget

Although you can find both older homes and new builds at a variety of price points, typically, older homes tend to cost less. In great part, this is because newer homes can have substantial upgrades and additions that make them far above what a base cost would be.

Maintenance

With a newly built home, buyers typically have warranties that they can depend on to help mitigate the cost of repairs, replacement and upkeep, at least for a certain amount of time. With an older home, those original warranties typically don’t exist, leaving the responsibility on the shoulders of the buyer. Though these can be small things, like fixing a door handle or a small crack in the wall, they can also be as large as roof repairs and HVAC unit replacements

Risk Tolerance

With older homes, there’s a track record of appreciation already in place. What’s more, it’s easier to discern how the area the home is built in is standing up to the test of time. With a new build, your investment could substantially increase, giving you equity faster than you thought possible, or prove to be much less fruitful than you once imagined.

Yard Size

Newer homes often come with smaller lot sizes and, as such, smaller yards. While this can be the case with older homes as well, it’s common to see much larger yard sizes and more, yards that are already fully landscaped and ready to enjoy.

Neighborhood

When purchasing a new home, buyers are often banking on the fact that their house will be in the new “it” neighborhood. With older homes, buyers are already well aware of the area and usually, what its surroundings can add to their investment.

Energy Use

Although there are a number of older homes that have been renovated to be energy efficient, new homes are often built that way from the start. This can result in lower bills, increased cost savings, and a better situation for the environment.

Commute

While it’s much more common for older homes to be more central within a city, newer homes can be further out and, often, in the suburbs. For those working within a city proper, this can result in longer commute times and, in some cases, a difficult time accessing public transportation (like the light rail).

You can take a quick look at these comparisons side-by-side below:

New Home

●      Can cost more, but brand new

●      Comes with warranties

●      Increased risk

●      Smaller yards, but can customize

●      Could be the next “it” neighborhood

●      Energy efficient

●      Can have longer commutes

Old Home

●      Can cost less, but may have issues

●      Could require more maintenance

●      Proven track record of appreciation

●      Often have larger yards

●      Established neighborhoods

●      Character

●      Often central

Although this isn’t an all-inclusive list, this can help to jumpstart your efforts when it comes to researching the right options for you.

At the end of the day, deciding on a new build or an older home depends on your own personal preference. While each has its own individual trade-offs, the important thing is to take into consideration what will work best for your situation and, more than anything, where you’ll be the happiest. Whether that’s in a brand new, custom built ranch in the country or a gorgeous 1980s townhouse.

Watch out latest video below for even more tips on finding the right type of home to buy!