What do you think of when you picture the home you'd like to
live in? To most people it bears a passing resemblance to the one they grew up
in. A traditional Victorian or, perhaps, a brownstone townhouse straight out of
a familiar TV show. Then again, maybe that is not what you are looking for.
Maybe you'd prefer something newer, something with contemporary style, the
latest amenities and a lot less maintenance. When it comes to home buying, one
size does not fit all. It really helps to understand the differences when it
comes to buying an older house and buying new construction.
Just What You Were
Thinking
"We wanted to live in one of those cool, funky
neighborhoods like in old Brooklyn, New York but we didn't want to have to renovate.
It just made more sense to get into a new place." – Donna M.
A New House Built for
You?
If not a custom-built house on its own lot, then most new homes today
are built in community developments with a cohesive style. These developments
can be as small as the old style cul-de-sac neighborhoods, or they can be as big
as a former farm filled with dozens and dozens of homes. These homes are built
to the latest planning and zoning codes and standards, they tend to be
contemporary in style, energy efficient and are often less expensive than
resale homes of a similar size. Sometimes, these types of new home developments
can represent a savings over established neighborhoods. Either way, the
decision about whether to sacrifice an established community is worth thinking
about and taking time to weigh your options. Specific details may vary
depending on your circumstances, but consider these pros and cons.
Pros and Cons of New
Construction
PROS
·
Contemporary style
·
Some flexibility on
design during construction phase
·
Cheaper to maintain
(new appliances = fewer repairs)
·
Cheaper to operate
(energy-efficient construction)
·
Extended warranties
·
Cohesive neighborhood
(consistent layout, common areas, amenities)
·
Frequently have a
homeowners association (helps protect resale value)
·
It's brand-new!
CONS
·
Cookie-cutter design
·
Limited negotiating
room on price
·
Most likely homeowners
association dues
·
Frequently less
character, more than likely identical designs
·
Frequently have a
homeowners association (can put limits on how you use your property)
Of course, one home
buyer's pro ("No one has lived in it before us, so we won't inherit any
problems.") can be another's con ("No one has lived in it
before us, so we have no way of knowing about any problems."). Fortunately,
there are ways to make sure the house you're buying is really the house you
want:
·
Check the builder's
track record. What else has the company built? Were previous projects completed
on time, on budget and without bad blood between the builder and buyers?
·
Walk the streets. If
you live nearby and previous stages of the development are occupied, ask the
residents if the builder did quality work and lived up to contractual
commitments.
·
Picture your home, not
the model home. You can certainly have the granite counters, surround-sound
home theater and jetted tub you saw in the model home, but they're not included
in the base price. You will pay extra for them.
·
Bring your own agent.
If the builder has a real estate agent on site, the agent will be more than happy
to help you. But, on-site agents work for the builders who hire them. Their
best interests will be for the builder, not you.
Finally, consider the intangibles. Similarly styled homes
attract like-minded buyers, and most developments are built with families in
mind. Depending on your point of view, the consistency, conformity and kids
playing in the street can be a blessing or a curse.
Existing /Resale Homes
Just what you were
thinking
"We liked the
charm factor of an older home -- even if it meant living in a construction zone
for months during our renovation." –
Jeffery W.
Old = Character?
With new developments popping up almost
overnight, it's obvious that new construction is on the rise. And yet, most
people buy an older home; i.e., a home that someone else has lived in but is
now on the market again. Call them old if you like — existing home sounds
better — but they're the kind of houses that many people would like to call
home.
Of course, there are pros and cons with older homes, too. (That cute
cottage with the casement windows? It can be mighty drafty come winter.) In
general, older homes tend to be more available and less expensive than new
homes, but they can also be full of surprises.
The Pros and Cons of Older
Homes
Pros
·
More choices, more
styles to choose from
·
Price may be more
negotiable
·
Known issues will be
revealed in disclosure documents
·
Established
neighborhood
·
Could contain more
charm and character
Cons
·
More maintenance:
Things break or wear out
·
Less energy-efficient:
More costly to operate
·
Dated design, older
appliances and amenities
·
It's been lived in!
As with new construction, there are ways to
make buying a resale home less scary:
·
Have the home
inspected. You do not want to find out the foundation is cracked or the roof
needs to be replaced after you move in.
·
Consider a
counter-offer. If the inspection reveals fixable flaws, propose the seller do
the repairs or lower the price.
·
Expect the unexpected.
Pipes leak, electrical work becomes outdated and furnaces fail — get used to
it.
·
Be honest with
yourself. If major repairs are required, you'll either have to do them yourself
or bring in the professionals. Some people enjoy D.I.Y. or hiring professionals;
others don’t.
The bottom line in older homes is this: Don't buy someone else's
problems unless you can handle the issues. Find a house you like, consider its
pros and cons — objectively, as well as emotionally — and think about the consequences
and sacrifices you may have to make. The more logically you approach buying a
house, the more you're going to love your home!
