Old or New, It’s Up to You

Today’s Wiki Wednesday Feature: Buying Old Homes vs New Construction

Assuming that your dream of buying a new home hasn’t suffered a rude awakening by the softening of the U.S. housing market (gone are the days when mortgage lenders would cheerfully hand over cash to anyone with a pulse), you’ve got a lot of decisions to make. And nestled in amongst the usual suspects — “House or condo?” “What can I afford?” “Should I use an agent?” — is one you may have answered without realizing it: “Old or new?”

Most home buyers, it turns out, have a very strong preference for one or the other…and (almost) never the twain shall meet. Someone whose vision of the perfect home is a Dutch Colonial would be unlikely to even consider moving into a newly built tract house, let alone a “McMansion.” Likewise, those who prize the reliability (and warranty) of new construction tend to see older homes in an unflattering light. As today’s featured article points out, each has its pros and cons — some of which are a matter of interpretation, while others are inherent.

In addition to being built with modern materials that are designed to be safe and energy efficient, new construction is more likely to incorporate contemporary features such as a three-car garage (an attraction to some, a visual blight to others). And while new homes are often built to form residential subdivisions that appeal especially to families with children, these same neighborhoods can come with special rules (”covenants”) that specify the color of your house (take your pick: beige, tan, or ecru), the length of your lawn, etc.

When buying existing construction (as old/used homes are typically referred to in the real estate business), there is plenty to consider as well, not the least of which is whether or not the house and its innards need updating sooner rather than later. But even if you do wind up replacing the roof, plumbing, or whatever, the character of the home remains. Obviously not every pro and con applies to every house — old or new — but no matter which way you decide to go, knowing what to expect will help prevent unpleasant surprises down the road.

Ed: Wiki Wednesdays is a weekly feature that highlights helpful or interesting articles from the Real Estate Guide.