New Homes vs Older Homes: The Pros and Cons of Each
According to a study by Trulia, two times as many people prefer new homes over existing properties. When you consider the benefits that come with newly built houses, it’s easy to understand why. However, there are two sides to every coin. Here are a few of the advantages and disadvantages of buying new versus pre-owned homes.
The Pros of New Homes
Most people love a good mystery, except when it surrounds the biggest investment of their lives. By purchasing new, you enjoy the peace of mind that comes with knowing your house is free of pests, rot and other issues that can come with existing properties.
With a new home, you can also have a builder customize the property based on your unique needs and preferences. Likewise, all the work is done for you, meaning you won’t need to swing a hammer or lift a paintbrush. New homes can also be designed with modern elements that meet today’s lifestyle demands, including walk-in closets, open kitchens, large master bathrooms, alarm systems, low-flow toilets and smart, energy-efficient appliances.
New homes also allow buyers to sidestep the costs of purchasing new heating, plumbing, air conditioning and appliances. Since they are built with new construction materials, new homes also typically mean lower utility bills, due to greater energy efficiency. In some cases, a brand new home will also include a short-term builder’s warranty along with an extended ten-year warranty for foundations and other structural components.
The Cons of New Homes
While they do come with a host of benefits, brand new properties also have a few drawbacks. For one, they can cost up to 20 percent more than a similar home built just a few years before. They may also lack some of the architectural detail and charm found in older properties.
Location can also be a problem with brand new homes. As builders fill out fresh lots, they tend to build in new construction neighborhoods and developments that may be far from schools, shopping centers and grocery stores. What’s more, if you are one of the first to move into the neighborhood, you might be living amid a construction zone for years.
Lot scarcity has also forced builders to maximize land by forgoing big backyards. With a new home, you may also find a scarcity of space between your house and that of your neighbors. New home buyers also find that there is very little room for negotiation, especially if their new properties are governed by tight subdivision restrictions.
Finally, while older homes have had years to demonstrate their structural integrity, 25 percent of new homes suffer some type of structural distress at some point in time. This is one big reason why so many homeowners ask builders to acquire ten-year structural warranties to protect against unmanageable repair costs.
Making a Decision
When it comes to weighing a new home against a pre-owned property, the benefits depend on a buyer’s individual needs and preferences. By knowing all the pros, cons and risks, you can make an informed decision that will fit your lifestyle and your budget.
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