Understanding the benefits and drawbacks of each will help you decide.

When buying a home, is it better to go with an older home or a recent build? Both can be a wonderful place to live. Thoughtfully considering the benefits and drawbacks for each can help you decide.

Benefits and drawbacks of newer homes

Newer homes offer a long list of benefits. For many homebuyers, more space and less maintenance are the primary reasons for choosing a new home. Other advantages include energy efficiency for lower utility bills, smart technology for convenience and safety and access to amenities—such as a community pool or playground—for exercise and socializing.

The drawbacks of newer homes include a lack of mature landscaping, look-alike homes and locations farther away from city centers.

Whether small lots are a pro or con is in the eye of the beholder. One hand, minimal lot size means less yardwork. On the other hand, there’s less privacy and space to play or garden.

Additional considerations for brand-new builds

A newly built home will be exceptionally clean and show no wear since it hasn’t been lived in. There may be post-construction flaws that require calling the builder back in, but a builder’s warranty covers construction issues for one to two years.

If you’re part of the building process from the start, you get to customize the home to your taste. This means choosing the flooring, cabinets, countertops, wall colors and fixtures you like. However, you may be surprised by expenses for items not included in the build, such as landscaping, gutters, window blinds, appliances, garage door openers or a mailbox.

It’s not unusual for construction to take longer than planned. Delays may arise from supply and labor shortages, bad weather or other factors. Your move-in date could be postponed for a few days or even a few months.

Another consideration in new home communities is an element of the unknown. Since all the homes are new and building may not yet be complete, it can be difficult to tell what the neighborhood’s long-term atmosphere will be. Also, you might have to live with the dust, noise and obstacles from ongoing construction.

Benefits and drawbacks of older homes

Key factors that make older homes desirable include established neighborhoods, proximity to city centers and mature landscaping. Typically, older homes have larger lots too.
The level of maintenance depends on how well the prior owner(s) maintained the home. Some homeowners are fastidious about keeping their home’s systems and appearance up-to-date. Others don’t prioritize upkeep. In cases where repairs were poorly done or not made at all, you may have a fixer-upper on your hands. Depending on your desires and budget, this could be a draw or a drawback. In general, the older a home is, the more likely it will need frequent maintenance.

The difference in energy efficiency between a newer home and an older home can be significant. If the home doesn’t have good insulation or an efficient HVAC system, you’ll pay more in utilities and may struggle to keep the home at a comfortable temperature.

Considerations for any home

The choice between a newer home or an older one is a personal one. You have to decide which factors are most important to you. Whichever you prefer, consider the following:

• Location: How far is it to work, shopping and school?
• Outdoor amenities: Are sidewalks and access to parks important to you?
• Taxes: Property taxes vary widely from place to place. Check out the property tax rates in the area where you want to buy.
• Homeowners insurance: The value of the home and its location drive the price of insurance, and premiums have increased as property values have risen. Factor this into your budget.

It used to be that new construction was more expensive than existing homes but in many competitive housing markets, that’s no longer always the case.

When you’re ready to buy a house of any age, talk to Consumers about a home loan. Our construction loan process streamlines the process from building through move-in. For existing homes, we offer options that include 0% down and we can tailor a home loan for your needs.

 

 All loans subject to approval. Rates, terms, and conditions are subject to change may vary based on credit worthiness, qualifications, and collateral conditions.