New Or Old? The Debate Continues by Michele Dawson

As you embark on your venture to buy a home, one of the first decisions to make is whether to buy new or purchase an existing home. Each choice has its advantages, and there is no single answer which works for everyone.

You may be drawn to the shiny new, energy-efficient appliances, the great room, and the beautiful master suite offered in a new home. But you may also like the charm, the canopy of trees that drape over the sleepy neighborhood streets, and the increasing value of an existing home you've been eying.

Here are some things you'll want to ponder as you decide which route to take.

Existing Homes
Existing homes offer many considerations for potential homebuyers, including:
The neighborhood. Many people are drawn to developed neighborhoods for the sense of community that has been established. The mature landscaping and developed trees are often a considering factor.

Maintenance and repair.
If you're considering an existing home, be sure you have a good handle on the working status of all major systems. Hire a professional home inspector to check out the house. As appliances and systems age they naturally require repair and replacement, something which may be reflected in a purchase price.

Home improvement.
If you enjoy small repairs and home improvement projects around the house, then an existing home would be your cup of tea.

Existing features.
When you buy an existing home, you typically don't have to worry about buying the extras, such as blinds for the window, a security system, or a landscaped back yard.
Land. In most metro centers, new homes may have less land than newer properties. Why? Because of changes in land-use patterns.

Location.
Existing homes are often found in older, more convenient metro core areas rather than outlying suburbs.

The opportunity to remodel.
In some cases buyers may prefer an older home in a particular location which can be modernized or expanded. In effect, use the existing home as a base to build a unique property.
Price. In general terms, existing homes tend to be less expensive than new properties. According to the National Association of Realtors, the median price for an existing home is expected to reach $146,600 in 2001. In contrast, says the National Association of Home Builders (NAHB), the median price for a new home in August was $167,600. As well, existing homes are likely to come complete with items which may represent new home extras -- blinds, landscaping, built-ins, etc.

Track record.
When you purchase an existing home, you know how much the property has appreciated over the years -- in effect, you have an index of sorts which measures the community's marketplace appeal. At the same time, like stocks and bonds, you know that past results do not guarantee future marketplace performance.

Taxes.
Depending on your state, you will likely have lower property tax rates. Also, many older households aren't required to pay for local bonds associated with new development, such as schools, parks, or road or transportation improvements.

Traditional layout.
If you like the formal living and dining rooms, an existing home will likely satisfy you.


New Homes
On the other hand, new home considerations include:

Warranties.
Many homebuilders offer 10-year warranties from third-parties who will be there if certain problems develop over time. In additional, appliances and systems also include direct manufacturers' warranties for such items as stoves, clothes washers, etc.

Modern architecture and layout.
If you prefer a great room (oversized family room), bigger closets, more bathrooms, and media niches over formal dining and living rooms, a new home is likely to better accommodate you.

Options.
When you buy a new home, you get to decide the particulars of what you want. You can also select any of the upgrade features the builder may offer, choose the right paint for each room, select the cabinets you want, and do much to customize the property.

Price.
As we saw above, new homes are typically more expensive than existing homes. But, new homes are likely to need fewer repairs or replacements because everything is, well, new, warranties are in place, and normal wear and tear has yet to begin.

Safety features.
Most new homes now have hard-wired smoke detectors on every floor. They are usually interconnected so that if one goes off, they all go off.

Energy efficiency.
Over time homes have become better insulated and energy costs for given purposes have been reduced. Better windows, more efficient heating and cooling equipment, better control of air infiltration, and greater use of insulation, new homes consume half the energy of homes built prior to 1980, according to the NAHB.

Less maintenance.
New homes are often made with materials that require less maintenance, such as aluminum siding, vinyl windows and trim that never need painting, and wood decks made with pressure-treated wood that resists rot and insects.

The Real Answer
So which is the better choice -- new or existing?

There's no single, objective answer that's right for everyone. We each have different preferences, and the values that best suit Jones may be all wrong for Smith.

Moreover, terms such as "new" and "existing" are among the many factors to consider when looking for a home. All homes are unique -- they each offer a combination of factors which no other home quite duplicates. There are trade-offs with every property.

The real question is not which is "better" -- new or existing -- but rather which specific property best meets your needs. The only "correct" answer is unique to you: It's whatever you prefer.

LINDA REYNOLDS

"REAL ESTATE PRO"

Helping Dreams Come True

Call Linda Reynolds For a limited time offer, if you list and sell your home through me, I will pay for a home warranty for your buyer.

CONTACT LINDA REYNOLDS TODAY

HOW TO BUY A HOME WITH ZERO DOWN

ASK ME ABOUT MY LISTING CANCELLATION GUARANTEE

FIND HOMES

FIND CONDOS

FIND VACANT LAND

WHAT'S MY HOME WORTH?

FIND HOMES FOR SALE