New Construction or Tried and True: Pros and Cons of Buying a New vs Older Home

Life is full of tough choices.  Chocolate or vanilla. Cats versus dogs.  Jelly or Jam.  Okay, so maybe these either-or scenarios might not exactly have life altering effects if you make the wrong choice (dogs are always the better choice) there is one decision you’ll need to make that will have a long term impact on your life.  When it comes to house-hunting, choosing between a new construction or an existing older home will have distinct differences in your overall living experience.  They will also affect your pocket book in varying ways.  Keep reading as we break down the pros and cons to homesnew and old.

Money Well Spent – In Different Areas

One of the primary considerations when making any home purchase is your budget.  With a new home the majority of your investment will go directly into the purchase price.  Generally speaking, new construction will have little to no work needed to get your new home move-in ready.  Homebuilders typically prime new walls to provide a blank palette to new owners so you may need to invest in a few gallons of color, or the services of a professional home painter.  New construction will also usually come with a home warranty good for one to five years, which will cover anything that may go wrong.

An older home on the other hand may need repairs, from minor to significant, in order to make it livable.  Walls are typically painted in colors that aren’t your preference, but at least they are painted before move in.  Unless you have a motivated seller, you generally won’t receive a home warranty which means buyers will be on the hook for potential fixes in the years to come.  A thorough home inspection will be important and can help uncover these potential pitfalls at a time when you are still able to ask for concessions, repairs or credits from your seller.

Established Neighborhood or Build Your Own

Another major consideration is whether or not you will be buying into an established neighborhood.  While some new construction is the result of tear downs of existing homes, many times you will be buying in a brand-new neighborhood next to neighbors that have purchased either shortly before or after you.  This can mean that your neighborhood will lack a sense of structure and community and relationships must be built.  This may take longer to create from the ground up.  On the other hand, in long standing neighborhoods it may be difficult to break into the local bridge game or weekly dinner parties with families who have known each other for years.

Things Can and Will Still Go Wrong

Whether buying new or old, keep in mind that the unknown can and will still happen.  New construction will often settle over the first few years, creating minor, cosmetic cracks that won’t be covered by your typical warranty.  Bigger issues may be covered under your home owners or warranty policy, but only if they have a major impact on your ability to live in your home.

For older homes, appliances and systems have a finite lifespan and even the best inspector may have a difficult time anticipating when a furnace or hot water heater will go bad or when, exactly, that roof will spring a leak.  On the other hand, a solid foundation that has lasted for 30, 40 or 100 years will most likely stand the test of another 50, and older houses were built using wood grown before the modern movement of fast growing trees for construction meaning your materials are more dense.  There is, after all, a reason people throw around the whole “they don’t make things like they used to” line.

Morale of the story, whether new or old, each home will have its own peculiarities.  The important thing for homeowners to consider is each individual prospect’s individual charms, then weigh these against other properties that may have made their way onto your final picks list.  Homes are much like people with individual characteristics and personality.  Spend some time getting to know the quirks of your potential new home before purchase for the best chance at avoiding buyer’s remorse.