5. Less maintenance: At the same time, today’s new homes are engineered specifically to minimize maintenance requirements. For example, Costello says his company uses composite products for a home’s exterior trim instead of wood, which could rot or need repainting.
“You buy a used house, you don’t know what you are getting; you might have to do a lot of maintenance,” Costello says. “We are trying to look down the road and make things as easy as possible for [homeowners] so they can enjoy living there and not have to be saddled with maintenance.”
6. Warranty: In addition, builders often agree to take care of the necessary repair work in a new home for at least the first year.
- MSN Money: A home warranty is no guarantee
“A new home is generally fully warrantied by the builder for a minimum of a year, and most of all the other components are warrantied for extended periods,” McCabe says.
So if your roof starts leaking or the heater breaks during the warranty period, your builder will pick up the tab for the repairs.
“When you buy a resale home, even if you have a home inspection done, it still does not turn up hidden defects that you don’t find out about a lot of times for two years,” McCabe says.
7. Fire safety: New homes often include fire-safety features that may not be in properties built years ago, Gilligan says.
“We use fire retardant in our carpeting and in our insulation,” he says.
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In addition, all new homes are required to include hard-wired smoke detectors. These devices can provide better protection than battery-operated smoke detectors, which can fail if their battery runs out, Morrow says.
“Hard-wired [smoke detectors] run on the electricity of the house and then have a battery backup for if the house power goes out,” he says.
- On our blog, 'Listed': Ways to ward off wildfires
8. Concessions: Especially in today’s sluggish housing market, buyers could squeeze more concessions out of a homebuilding company than an individual seller. That’s because individual sellers often have an emotional attachment to their property that can blind them to its true value.
“People usually think that their home is worth more money than it is,” McCabe says.
At the same time, builders often have greater financial wherewithal to absorb a loss on a sale than individuals.
“I’ll put it to you this way: A $30,000 hit [spread] over 30 lots hurts a lot less than a $30,000 hit on one existing house,” says Christopher Rachuba of Rachuba Home Builders, based in Eldersburg, Md. “So I think [buyers] may get more bargaining [power] that way.”
9. Financing: New-home buyers can take advantage of mortgage-financing perks available through their builder.
“New-home builders — in many cases, the larger ones — have their own mortgage companies, or they will offer paying points or closing costs and buy down certain rates for you,” McCabe says. “The seller of a resale home is generally not going to do that for the buyer.”
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For the older homes depending on the era depends on how much more you will spend to update to modern standards. 10 to 20 years old should not be that expensive to bring up to date ,anything older than that consider the wiring ,HVAC, and insulating.I have seen people buy older house (60 plus years) and attempt to renovate with remodeling going way over budget due to rewiring and installation of HVAC were there was none.
In the end the decision is yours ,with a very large investment at stake consider the future cost to make the house your home.
I build new construction for a living and have four homes one 2008, one 1987, two 1960(not financeable cash transactions)/ The 2008 I built with 9 inspections from building officials and a Dr. in civil engineering V.A./HUD inspector. It is a stucco style finish with enough hardware to face a 91 mph gust with no problems. We have faced close to 100 mph gust many times since I built this. Two of the other homes are slump block with minimal insulation level in the walls that are furred out to hang the drywall on with swamp coolers and 100 amp service, to upgrade widows to dual payne cost me 1200, to upgrade to ac with a required 200 amp service by the officials is 8000 and still had to buy new appliances, paint and floor finishing's. In the last house built in 1960 had no grounding wires so the house had to be stripped for a three wire system, 200 amp service, no insulation on exterior walls so I pulled all the exterior wall drywall off to properly insulate and am currently drywalling, this house is 1100 ft2 and I will remodel it all for 35000.
Both new and old have advantages the old requires a good amount of cash where a New construction can still be financed for little cash down. Many home buyers in our area do not even have the cash to buy furniture so they buy a new house that will appraise for the loan amount.
Also, a new home is up to code... here in South Florida, that means not only Energy Conservation measures but also the most recent Hurricane Codes regarding windows, doors, roofs and shutters.
David Podgursky - Boca Executive Realty - 561-880-5757 - firstname.lastname@example.org - http://www.bocaexecutiverealty.com
There are plenty of slightly improved 50-70 year old homes in our 'hood. We bought one in 2007 as it was the best of the bottom of the heap (in 2007, anything 'affordable' was the bottom of the heap...the houses we saw before this one all needed to be torn down and I'm not kidding). We are now paying the same to heat 900 sq ft as one would pay to heat a McMansion. I know. I used to read gas and electric meters and our gas numbers are similar to what I'd read on the brand new houses and also similar to what I read on many older, much smaller unimproved homes in 'hoods around the state.
I hate this house. I hate its old bones and I hate running into the tiny doorframes and twisting through an antiquated, path impeding layout. And dealing with a circa 1937 kitchen even with modern appliances.....I won't even go there, the hate is too great.
We are forced, finally (the crash happened right after we bought and purposely reduced to one income to dare to raise our very own child), to borrow from the 401(K) to do some energy efficiency updates because it costs less to borrow from the 401(K) than to continue to pay to heat the outside in the winter and cool the outside in the summer. I think any newer home is better than horsehair board and 73 year old windows, personally. We will never buy a slightly improved older home, again. It isn't worth it as we will be struggling to make this place worth what we actually paid for it......Sorry, no joy here, after this experience, we just may build. At least that stress pays off in a house one can actually enjoy living in (at least that was my mother's experience).
I'm tired of managing this outdated old house and its great energy ineffiencies. We looked at it with renters eyes and now we pay the price for our inexperience. But, good enough for the first time buyer, ay?
Yeah, just look at those beauties in the picture. All made of OSB garbage and 2x4's so light you can pick them up with 2 fingers. I for one would love to get my hands on one of those, so that it could swell and fall apart with the first water leak. Do yourself a favor and get an older block or brick home when they were made of quality solid materials and put a little sweat into the remodel. You will know that it is done right, and you will save tens of thousands in the process.
I have been hunting for a house to buy for the past year in the midwest. Here's my advice after a year of looking - It doesn't make any sense in this economy to buy a new home period. Unless ofcourse you have more money than you know what to do with.
Why ever not ?
The existing home prices have fallen quite a bit but the new home prices haven't fallen that much. You may get a discount from builders but the price they ask for new homes simply doesn't relate to this economy. Its not their fault because the cost of building doesn't play to the tune of the economy and moves only one way - UP. If I bought a 5-8year old house that is built very well and met all my expectations I will pay about 40-50% less than an equivalent house that is a new construction in the area I live in. I like new houses very much for all the reasons listed in the article but cannot find one for the price that is more in line with the existing homes. What I mean by that is, if I bought a new home today for $400,000 and lost my job 6months down the road there is no way I can sell it for $400,000. Not to mention all the expense I would have made in buying appliances, landscaping, etc. which you can easily get included in the price if you buy an existing home.