Benefits of Buying Newer Homes Versus Older Homes
This Article Covers The Benefits of Buying Newer Homes Versus Older Homes:
Buying a newer home, especially a new construction home, offers many benefits. In this article, we will discuss and cover the following topics:
- Common FAQ on the benefits of buying newer versus older homes.
- Potential problems with buying older homes for first-time homebuyers.
- Benefits and disadvantages of buying older homes.
First-time home buyers often are faced with many questions concerning their home purchase.
Most Common FAQ on the Benefits of Buying Newer Versus Older Homes
One of the many questions I get from first-time homebuyers is whether it is better to purchase a new home than pre-existing older homes. In the past, newer homes were priced higher than older homes.
But that is no longer the case. As the land value has increased over time, newer homes have normally smaller lot sizes. It is very rare to purchase a newer home with an acre parcel unless it is zoned with one-acre minimum zoning.
Most newer homes are built on 1/8th to 1/4 acre lots. Most older homes have larger lot sizes This is due to the scarcity of land. Land value is expensive.
Smaller lot sizes mean less privacy.
In this article, we will cover the major benefits of buying a newer home by homebuyers versus an older house.
Older Homes for First Time Home Buyers
First-time home buyers should also consider buying an older versus a newer home due to the many advantages an older home can offer.
Most first-time homebuyers automatically come to the conclusion that newer is better. That can be the case most of the time.
However, there are advantages to buying an older home as well too.
Benefits of Buying Older Homes
Here are some of the advantages of buying an older home versus a newer home for first-time homebuyers.
Quality handcrafted construction:
Many older homes were built more articulately than newer homes. Some older homes were hand-built by genuine craftsmen. Many older homes have been built decades ago and still are standing strong.
Larger lot sizes than a newer home:
- It is rare to see a newer home is built on an acre of land these days
- This is because due to the scarcity of value.
- Years ago when the land was abundant and not so expensive, older homes were built on larger parcels.
- You can always find older homes on larger lots, unlike newer homes.
Mature landscape and mature trees:
- One of the main advantages of buying a newer home is the fact that there are mature landscapes and mature trees.
- It takes years for trees to mature and homebuyers can find some aged beautiful large trees on the landscape of older homes.
Disadvantages of Older Versus Newer Homes
For every advantage there are disadvantages. Some of the disadvantages of buying older homes versus new homes are listed below.
Maintenance intensive for older homes:
- Common sense dictates that older homes will age and more maintenance is required.
Some of the maintenance include:
- roof replacement and/or repairs, foundation problems
- cracked concrete and driveways
- other issues that can occur with age
Advantages for First Time Home Buyers Buying New Homes
There are many advantages to buying newer homes.
- Some of the advantages are that newer homes require less maintenance than older homes.
- Homeowners can rest assured that they will most likely not have to replace your roof, windows, doors, and other high ticket items with a newer home.
Another advantage for first time home buyers buying newer homes is that newer homes will come with the following:
- modern appliances.
- new fixtures such as built-in dishwashers, washers, dryers, microwaves, refrigerators.
Other features such as the following:
- walk-in closets
- wine coolers
- modern wiring for internet, alarm, and electronics
Newer homes are also generally more energy-efficient than older homes.
What Experts Say
Alex Carlucci, a senior mortgage banker at Gustan Cho Associates is that many of his borrowers want the best of both worlds. Alex Carlucci says the following:
I hear this all the time: how people want modern amenities—but maybe not in a brand-new home. They don’t make things like they used to, is the common refrain. If you feel the same way, you do have an option: “Buy an older home with good bones and take the opportunity to renovate it or hire someone to do it. In other words, you may not have to choose between an old house versus a new house after all. Looks matter a lot when it comes to choosing a home. And both old and new homes have their fans: In an older home, you’ll likely get some sense of historic tradition and thoughtful attention to detail. Think crown molding. Real hardwood floors. And (if you’re lucky) a secret back staircase or dumbwaiter. On the other side of this debate, brand-new houses often sport the latest and greatest—i.e., open living spaces with wide, accessible hallways; and bathrooms and kitchens with energy-efficient, on-trend amenities.
Property taxes on a new construction home can be substantially more. Pre-existing homes have established real estate taxes. New construction homes have the possibility for property taxes to increase over time.
Home Buyers who need to qualify for a mortgage with a national direct lender with no overlays on government and conventional loans can contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response. Or email us at [email protected] Gustan Cho Associates has ZERO lender overlays on FHA, VA, USDA, and Conventional Loans.
GCA Mortgage are also mortgage brokers on non-QM loans and bank statement loans for self-employed borrowers. Gustan Cho Associates has dozens of lending relationships with non-QM wholesale lenders.