Whether you are a current or prospective homeowner, determining the type of house you want to purchase next is a critical decision in the home buying process. There are basically two types of homes you can choose from: an old one or a new one. In this article we will outline the differences between your options, hopefully providing you with the knowledge you need for your next investment.
Now, Let’s Compare!
Purchase Price and Negotiating Opportunities
As you may have assumed, buying a new home will be more expensive and the purchase price may have less room for negotiation. Developers are strategically building track homes in neighborhoods, creating an average on-market price and closing price for homes in specific communities.
However, if you buy an older home you will have a higher chance of finding a home at a lower selling point. In addition to the lower value, there also tends to be more room for negotiation in the sale. Homeowners know the value of their home and the challenges with competing with newer models; therefore, they usually have more leniency on the closing terms.
Newly constructed houses should require minimal maintenance, providing you with peace of mind on the cost of the home upfront. Older model homes however are often bought as an investment with multiple DIY (do it yourself) projects required in the future. Furthermore, as time goes on, it’s inevitable that the older home will have more issues than a newer one, requiring even more time and money.
Home Design: Character and Space
Older homes are smaller but are often described as having more character. With years of life happening in them, they have the personality that some homeowners are looking for. Newer homes however are generally designed with a more open-space concept and with white walls. This allows incoming residents to decide how they want to decorate the space, giving it their own unique touch.
This one is simple. Older homes generally do not have warranties unless the current homeowner has recently installed appliances or upgraded the property and obtained a warranty – such as for the roof. Newer homes, especially those that are brand new, will provide homeowners with the comfort of knowing that any future issues within the warranty timeframe will be covered by the manufacturer or company responsible for the work
This topic is prevalent for two types of home buyers. First off, if someone is looking for an eco-friendly home, older homes are not the avenue to choose. Newer homes generally include double plane windows, energy efficient HVAC systems, on-demand water heaters and heat pumps, and much more. Not only are these energy efficient homes environmentally friendly, but they also help homeowners save money. Upgrades and additions such as those listed reduce energy usage and therefore reduce monthly bills. If you purchase an older home however, transitioning it to an energy efficient home can be quite costly; consequently, both the upgrades and the long-term expensive bills are not typically a financially sound decision.
We are not talking about your typical front door security system, but rather an improved architectural design that helps with the security of your home and your family. Newer homes often include features that help enhance these qualities, including strong construction materials, already installed alarms and sensors, and high-performance locks.
Assessing your options, along with reviewing what is available in the market, is the key to making a financially responsible decision for your future. It is imperative that if you do decide to purchase an older home, you are prepared to take on the DIY projects and unexpected maintenance issues that come along with the house.
What if you live in an old home, but want to move into a new home?
At the end of the day, moving can be expensive. But as you can see from the list above, the benefits of living in a newer home greatly outweigh the benefits of living in an older home. There is a simple solution for you if you are considering moving: sell to us. We are Gulf State Homebuyers, an all-cash home buying company located in Baytown, TX. We are dedicated to helping individuals in our community transition into the newer home of their dreams. The benefits of selling to us include: we cover all closing costs and we charge no agent fees, plus we help with moving costs! To learn more about how we can help you, contact us today!