Should I Buy A New Or An Existing Home?

Karin Carr, Owner
Published on July 12, 2021

One of the choices you may be faced with when you decide to buy a home is whether to buy a newly-built home in a new home community or an existing house. Sure, you can remodel an older home to suit your needs, but do you have the time and the money to do so? A new home, on the other hand, can be built to your specifications.

Building a home isn’t without its drawbacks, however. There are many decisions to be made along the way and if you aren’t careful you may end up spending more than you’d anticipated.

There is something to be said for both choices, so let’s take a look at some things to consider while making up your mind.

What you’ll spend

Although most homebuyers claim they want a brand new home, according to a Harris Research poll, few said they were willing to pay a 20 percent premium for it.

What these respondents failed to understand is that a new home may cost them less over the long haul.

Most new construction features energy-efficient appliances, windows, and other items. These help save money on heating and cooling bills. Then, because the home is new, maintenance won’t be as expensive as it is with an older home, at least for the first few years.

Builders often offer incentives if the buyer uses the in-house lender. If the builder offers a discount on points for the loan, the savings over the life of the loan may just be enough to offset that new construction premium.

Your lifestyle

If you need space for hobbies or if you work at home you may appreciate the perks of being able to choose how your home is laid out while it’s being built. If, on the other hand, you enjoy the charm of tree-lined streets and mature landscaping, an older home may fit the bill.

When deciding whether to buy a newly-constructed home or an existing home, it all boils down to your lifestyle. Existing homes are typically in closer proximity to city conveniences so if you enjoy walking to your favorite eatery you may want to consider an older home closer to downtown.

If the thought of an after-work dip in the community pool gets your pulse pounding, a new-home community may be your answer.

Should I Buy A New Or An Existing Home?

The location

Until now, we have only discussed the financial aspects of purchasing a new or existing property, however, there are additional factors to consider when purchasing a new home. There is also the issue of lifestyle and how the home you select (and its location) impacts your quality of life. While a freshly constructed home may provide cutting-edge facilities, you may have to make certain sacrifices in order to enjoy them.

For instance, a new home is likely to be constructed in a developing town, which means you will be exposed to continuing construction for some time. A freshly constructed home is also more likely to be in an underdeveloped neighborhood with restricted access to schools, stores, and places of worship.

In addition, new home projects are typically located at a considerable distance from major metropolitan centers, so your commute to work may be significantly longer than you prefer. Long trips have a significant detrimental effect on happiness.

Resale homes are in established neighborhoods with easy access to jobs, schools, and shopping. Existing homes provide you with more neighborhood options. You can buy in a part of town that suits your lifestyle and social needs. You can select homes in better school districts or closer to work, worship, shopping, and entertainment. Older homes tend to be in established neighborhoods, in contrast to cookie-cutter modern housing projects.

Location affects property values. With an older home in a well-established neighborhood, you can watch its rise and fall to determine if it’s a sensible investment. New buildings rely on future construction and new buyers to create property prices, which is uncertain.

Whichever you decide, we’re happy to show you homes that fit the bill.

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