Trying to decide between purchasing a new home or an existing one probably dates back to the first mud huts.

On the one hand, a new home offers the owner the option to customize features and make it uniquely their own. But an older home can offer a charm and personality in an established neighborhood that no new development can match.

To help you decide which best fits your personality, we’ve put together some helpful check sheets.

New vs. Old Pros and Cons

Tips to Remember When Purchasing a Home

Here are some pros and cons to help you sort things out:

Locale:

Even in today’s marketplace, “location, location, location” is still relevant. Many older neighborhoods are close to a town’s center, which means convenient access to transportation, entertainment and shopping. New subdivisions, with their newer schools, are generally located farther out. The expense of commuting can increase costs of ownership, but many of these communities are adding their own town centers into their plans.

Price:

Existing homes are usually less expensive per square foot, largely because of the escalating land costs in new subdivisions. But ownerships costs are more predictable for a new home and many builders include the closing costs in the price of their new homes. Price is more negotiable for an existing home, but the cost of upgrading or remodeling may need to be factored into the overall price of owning the home. Finally many subdivisions have the additional costs for homeowner association fees and assessments for architectural enhancements, open spaces and maintenance. Do your homework.

Move-in complications, advantages:

An existing home is sitting there, awaiting occupancy. The wait for a new home can seem like an eternity, though you can check on its quality while it is being built. If your new house is among the first in a new subdivision, be prepared to navigate through construction crews for months on end. And don’t forget the endless hammering during the days. Whether you buy an existing home or a new home, you need to have a definite possession date. Unfortunately, new construction often has building delays so you need to be flexible when it comes to an exact move-in date when building a new home.

 

Neighborhood:

People moving into a new subdivision are pretty homogenous – the same things that appeal to you about the area appeal to them as well. With a new development, you have the opportunity to help create its character and lifestyle. If you have children and want them to have lots of playmates, a new subdivision may be a perfect fit. In an older community, people have moved in and out of it over the years, so there is a greater diversity in the residents – a mix of older people, singles, families and renters.

Living space and design:

Lower building costs in the past mean you get more home for the money with an existing home. Basements may be finished for additional living space and the yards are already landscaped. Additional features such as decks or hot tubs may already be in place. On the other hand, newly constructed homes are often more energy efficient and advances in design create more usable space in a smaller square footage.

Customization:

With a new house you can pick your own color schemes, flooring, kitchen cabinets, appliances, custom wiring for entertainment and computers and upgrade options. Extra large closets and bathrooms along with desirable features such as a media room are more possible in a new construction. In an existing home, you rely on the previous resident’s tastes in décor, particularly fixtures.

Character:

While many new homes are built in a “contextual” style, which blends elements of old and new, it’s still hard to emulate a pre-Civil War house in New Orleans, a Brownstone in Boston or a charming Victorian in San Francisco. New techniques simply can’t duplicate the craftsmanship in these homes, with their hand built cabinetry, vaulted ceilings, hardwood floors or built-ins. To control the cost of building a new development builders often use a small number of stock floor plans. As such, your home will more than likely look like others on the same block or a block or so away.

Safety:

Builders have to follow very strict guidelines when building or remodeling. In general, new homes are more fire safe and security systems are frequently built right in. Depending on their age, older homes often weren’t even bolted to their foundations. Of course, the fact that they’re still around is a testament to their sturdy craftsmanship and this can be appealing to certain buyers.

Landscaping:

Mature trees and shrubs, rose bushes and gardens are found in established homes as are built-in sprinkler systems, arbors and lush lawns. Most new homes require you to do all this yourself. If you have a green thumb, that’s not a problem. If not, factor in the cost of landscaping for a new home.

Energy Efficiency:

New construction is the winner here. New homes have Energy Star windows, thicker insulation and other advances in technology and design that will keep your energy costs low. Most states also have minimum energy-efficiency requirements for new appliances. Older homes, unless they have undergone an energy retrofit, usually cost more per square foot to heat or cool.

Amenities:

New subdivisions often have community clubhouses, swimming pools, playgrounds, bike and jogging trails and picnic areas for residents. Older homes usually aren’t near these, though you may have better access to urban shopping venues and restaurants.

Maintenance:

The charm of an older home may mean increased maintenance costs, particularly if the previous owner(s) were not vigilant in upkeep. Building materials may be harder to come by when trying to match an addition with the existing structure. New homes usually come with a one-year warranty for the repair of some problems that may develop. As a buyer, be sure to know what the warranty covers.

Taxes:

Because newer homes are built in less developed areas, taxes for services may be higher, because you are subsidizing an area that has fewer inhabitants. Your community still needs fire and police protection as well as sewers, water, power, cable and schools. An existing home in an established neighborhood offers a more stable tax structure because there are more residents to spread out the cost.

Tips to Remember when Purchasing a Home:

Regardless of the direction you choose – buying a new home or purchasing an existing one – be sure that you hire a properly credentialed person to perform an inspection.

When buying an older home, you might want to consider obtaining a home warranty. This policy covers things like appliances, water heaters and other items in the home and can be a godsend if something springs a leak or breaks in the first year of ownership. Most warranties cost approximately $375 and can be purchased by either the buyer or seller.

Also, consider adding an alarm system to your home. Many insurance companies offer a discount on your homeowner’s insurance for having an alarm. Often, the cost of the system is offset by the discount and it costs you nothing additional. And the peace of mind of having your home protected against fire, theft, flood and carbon monoxide is hard to beat.

Finally, be sure to check the zoning of any vacant fields surrounding your new or resale home. Buyers in both new and established subdivisions have been unpleasantly surprised to find that the vacant lot adjoining their home is soon going to be the newest apartment building or shopping center in town.