Real Estate FAQ's

SHOULD YOU BUY AN OLD OR NEW HOUSE?

One of the core decisions that a prospective home buyer must make is the decision of whether to buy a new home or an old home. Each choice has their advantages and disadvantages, and the decision will be affected by the buyer's personal circumstances and preferences.

Whether buying and old or a new house, it is imperative to have the home thoroughly examined by a certified home inspector prior to purchase. Even a new home can have problems, and a good, thorough inspection is definitely a must whether you are buying a new or old house. Be sure to get any problems found put in writing immediately and presented to the seller of the home. The problems uncovered by a home inspection can be used as negotiating points when settling on the purchase price of the home. If the seller agrees to repair the items uncovered by the home inspection prior to purchase, be sure to get those promises in writing and proof of repairs prior to closing.

AN OLDER HOUSE

Typically, an older house is going to need at least some repairs. Things like the roof, septic system, carpet, woodwork and other items may need to be replaced now or in the near future. However, construction quality on a well built older home is often better than it is on a comparable new home.  There are also older homes that have been rehabbed, updating and replacing the plumbing, electrical and mechanical systems, as well as the roof, windows and other esthetic elements. Buying an older house can allow the home buyer, especially a first time home buyer, to purchase a larger or more luxurious home than they might otherwise purchase.  This also allows the new homeowner to build what is called “sweat equity”, which means they are able to improve the homes value by making repairs and improvements themselves.  Many buyers prefer the distinct character and storied history of an older house to less distinctive style of many new homes.

If you decide to purchase an old house in a historic district, however, there may be local ordinances which limit what you can do to the home. Owners of historic homes are often restricted from changing the outside appearance of the home, including such things as painting, window styles and certain landscaping. Your real estate agent will be able to apprise you of any restrictions that apply to an older house.

A NEWER HOUSE

Should you decide that a new home is the right decision for you, it is imperative to examine the history and reputation of builder and the developer. If you are buying a new home in an existing development, talk to homeowners who already live there and get their feedback. Honest feedback is your best tool when researching a builder and/or development. If the home you are considering is in a brand new development, seek out other developments that the builder has done. Talk to those homeowners and get their views on the quality of the construction and the nature of the neighborhood.  You want to find out if the builder is available to you if problems occur, or if he disappears once the house is sold. This type of information can be of great assistance when deciding on your new home.  Your realtor will also research any recent re-sales in the area so you can determine if the homes are holding their value.

Whether you decide to buy a newer home or an older house, the decision to purchase a home in the first place is the most important decision of all. A home is a great investment. Finding the best home at the best price will ensure that your investment continues to appreciate year after year.