Homebuying: Should you buy new or pre-owned?

It’s safe to say that U.S. real estate composed of two types of homes — pre-owned and new constructions. If you can’t decide between the two, here are four things to carefully consider.

1. New homes have minimal issues.

   One of the biggest perks of buying a new home is you get a clean slate. Unlike old homes, you can rest assured there are minimal to no underlying issues. Everything is in perfect working order– you won’t need to worry about additional costs for necessary repairs and upgrades.

   New homes are easier to purchase as well. Nowadays, most home builders in the country have their own financing departments. This makes shopping for a loan a whole lot easier. Whether the deal offered to you is a good one, however, is a different question.

2. New homes are more expensive.

   Although you’ll be facing considerably less competition for a new home, buying one will require you to shell out more money. According to a study by Trulia, new homes are likely to be 20% more expensive that old homes. Yes, you do get newer materials and probably the latest technology, but is it really worth it when you consider the next item?

3. New homes aren’t built on great locations.

   It’s not a bad thing, per se. We all know there is hardly any space for new residential developments in established or central locations. The thing is, location matters when you’re buying a home. While some new homes are build in "upcoming" areas, others are built on locations that have questionable potential.

   If you don’t mind living a short drive away from the city center, a new home in a new development might be an option for you. If you prefer living in an established neighborhood, close to downtown and a variety of amenities, investing in an old home might be the best course of action.

4. Old doesn’t mean dull or boring.

   Old homes aren’t always outdated or in bad shape. Some sellers update old homes (even historic properties) to bring life to the residence. They do this so well, some old homes come in even better shape than new constructions. Washington, D.C., in particular, has a number of older properties (rowhomes, for instance) that are modern and highly coveted.

In conclusion, it’s best not to close your doors on either old or new homes. Check out what’s in the market! What is important is you finding a home that suits your needs and lifestyle, regardless of how old it is.

For more resources on homebuying, check out this page.

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Filed under: Blog, Home Buying, Real Estate Tips by Andrew Pariser
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