New Home VS Old Home

How to Decide What Works Best for You.

If you’re considering purchasing a home, you have a choice—old or new? Some people want to move into a house where everything is brand new; others love the charm of an older home. If you’re selling, keep in mind that your home is competing with both existing homes and new construction, so knowing what buyers want can help maximize the sales potential of your home. While much comes down to the type of neighborhood a buyer wants to live in, and the type of home they prefer, there are some key differences between old and new homes.

Location, location, location
Most older homes are located in established neighborhoods close to the center of town. Newer homes—along with newer schools—are generally on the outskirts. Many new communities offer neighborhood amenities like clubhouses, swimming pools, and bike and jogging trails. Older communities often don’t have these features, but may have better access to urban shopping, restaurants and cultural activities. While you can often get more house for your money if you venture out from the central core, remember to consider the time and expense of a daily commute if you work in the city.

What’s your style
Builders often try and emulate the classic styling of older homes, but it’s nearly impossible to capture the period detailing and craftsmanship of a home built 100 years ago. Intricate tile work, inlaid hardwood floors and leaded windows are all part of the charm of an older house. And part of the charm of old neighborhoods is that homes were built to be architecturally distinct from one another. That said, a new home can still combine wonderful finishes with amenities not found in vintage homes. Up-to-date appliances, sleek cabinetry, Jacuzzi tubs and stylish countertop materials all lend a contemporary, upscale feel to new homes. New homes have technology advances as well. Most new construction comes Internet-ready with high-speed phone lines and cable hookups throughout the home.

A layout you can live with
The way we live has changed, and the layout of newer homes reflects that. Advances in building technology allow today’s homes to be much more open, with larger spaces and bigger windows. Newer homes have more bathrooms, bigger kitchens that double as entertainment space and two and three car garages. Media rooms, walk-in closets and master bathrooms are standard. An older home can be remodeled to accommodate many of these features, but the expense can be considerable.

A lovely landscape
Tree-lined streets, lush lawns and mature gardens are part of the appeal of an older neighborhood. Since landscaping is very expensive, builders may choose to trim costs in this area. As a buyer, you can certainly opt to fill out your landscaping with larger trees, shrubs and garden beds, just keep in mind that this can add thousands of dollars of cost to a new home. Your new landscaping will also require diligent maintenance until it is well-established.

Maximizing energy-efficiency
Newer construction has a large advantage here. Advancements in building materials and technology mean new homes are better insulated and more airtight. Energy-efficient windows, doors and appliances also help make a newer home much cheaper per square foot to air-condition and heat. However, the soaring ceilings, huge windows and large, open rooms found in some new homes can still add up to a hefty utility bill. If you have an older home, you can trim your energy costs by adding insulation to the attic and walls and installing new energy-efficient windows. Be aware that the cost of installing new windows can run $1,000 a piece.

 

Maintenance matters
It’s a fact—older homes need more maintenance. New construction generally comes with at least a one-year warranty for the repair of any major problems. With an older home, you’re on your own. Aging roofs, outdated plumbing, old electrical systems and dated appliances all need babying, and will eventually have to be replaced. Make sure and consider the replacement cost of these big-ticket items when evaluating homes.

The cost of remodeling
Homeowners often look for the best of both worlds—a charming older home with all the amenities of modern construction. While it is certainly possible to update an older home, be sure to factor the remodeling costs into your purchase price. When you  add up the expense of fixing up that quaint fixer-upper, you might find that you could have built a new home for the same price. Renovated older homes also rarely meet the energy saving standards of today’s new homes.

Quality that lasts
It’s a common misconception that old houses are built better. While the level of detailed craftsmanship found in old homes is only seen in the most expensive custom homes today, the actual structural integrity of modern homes is superior. New homes benefit from improved building technology that includes stronger materials and better engineering. For example, floor joists engineered with composite wood are stronger and more durable than the heavy, solid lumber used in homes 50 years ago.

If you're selling your home

When you put your home on the market, you’re competing with other existing homes, as well as new construction, for the buyer’s attention. According to the National Association of Realtors, about six existing homes are sold for every new home built in the U.S. each year. New construction really sets the standard for amenities. If you are selling an older home, you may want to consider upgrading your home prior to sale. Most buyers still prefer a home they consider “ready to move in”.
The challenge with home improvements designed to help sell your home is recouping your costs. There are specific improvements that traditionally provide a good return on investment. These include building a deck or patio and finishing out a basement. Landscaping, especially trees and shrubs, increases curb appeal and always pays off. Kitchens and bathrooms can really date a home, so upgrading flooring, countertops, cabinets and fixtures is a good idea.
If you’re thinking about upgrades to your home, it’s good to know what potential buyers prefer. Visit new developments with homes in your price range. Note the standard amenities offered and the styling in the model homes. You’ll get valuable information about the paint colors, floor coverings, appliances and fixtures that are most appealing to potential buyers for your home.