Once you make the decision to buy a home, there are a host of issues you need to consider. One of the basic ones is whether to buy a new or older home.
The perfect home may seem a subjective topic. After all, only you can really know what you want, right? Well, not exactly. While style, color and so on are definitely issues, there are some practical ones you also need to take into account. How is the neighborhood? If you have kids or plan to, what is the school district like? What kind of commute are you looking at to and from home? All of these are factors to take into account, but you still have to decide on the age of the home you are after.
There is a common understanding about new things that does not apply to the real estate industry. With most new things, the value drops the minute you buy it. If I go buy a new Ford Mustang, it is worth less than I paid the minute I leave the dealer’s lot. This is not the case with homes. A new home is pretty much worth what you pay, so don’t let this issue cloud your decision.
With new homes, there are positives and negatives. On the positive side, a new home is…well, new. The cost of maintaining should be less than with an older home. The cost of fixing things should be nearly non-existent for a few years since everything is new. If you want a home that doesn’t need work on the weekends, this is probably your best choice.
The downside to a new home depends on what you are buying. In many areas of the country, new homes are built as part of developments. This means you get stuck with fees for homeowners’ associations and such. There may also be restrictions on making changes to the homes. Finally, new homes in these developments tend to be somewhat on the cookie-cutter side. Every third home is the same, so there isn’t much character to each home. If you don’t care, it isn’t an issue.
The advantages to buying an older home are many. First, the home probably has some character to it. Second, the home should have a well-developed landscaping situation, to wit, bit trees and such. Third, the neighborhood is established and you can pretty much tell if you are moving into a friendly place with families or fraternity row.
The obvious downside to an older home is the cost of maintenance. You will have some and things will need to be fixed. Most major problems, however, should be identified and dealt with in the home inspection. The second downside is the home may not have all the modern amenities you like. You might think it is cool to have an old wood stove to heat the home, but you could feel differently after a few weeks in the winter.
There are a lot of factors that go into deciding whether you should buy a new or older home. The point of this article is to think them through before making the pivotal decision.
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