Buying an Older Home VS Building a New One

When deciding to buy a home, the hardest part may be choosing whether you want to buy an older home or build a new one. Keep in mind there are advantages and disadvantages with either choice. By following this guide, it can help to weigh the options.

Advantages in buying an older home

• You can move in as soon as the paperwork is signed. The whole process takes approximately 4-6 weeks.


• The home is in an established neighborhood, therefore you can pretty much check out your neighbors. As compared to a building a new home in a new area, you will not know what kind of future the neighborhood has.


• The better dollar for your value is an older home. The home most likely will come with the appliances and added upgrades, such as top-notch flooring or countertops. However, the added benefit is if the home is not properly equipped, as you want it to be, such as outdated countertops, older appliances, older HVAC system, this can be a negotiating point when discussing the price you are willing to pay with the sellers.

Disadvantages in buying and older home

• It may never be exactly what you want. Do you really need that fourth bedroom or is a garage more important? Does a great backyard compensate for a house on a busy street? All of these and similar questions is what you may find yourself asking.


• Older homes may soon need renovations, such as a roof, siding, or windows. Ensure that you are not going to drown in remodeling costs by buying a "money pit.”


• Most older homes are not as energy efficient as they could be. Building standards have changed over the years, meaning that older windows and HVAC systems may cost you more money in the end.

Advantages in building a new home

• You pick the exact style you want, a two-story, and a ranch style home, a cape cod, without a garage or a basement.


• Your home will be new, therefore you want have to worry about updating the roof, siding, or windows.


• You have the ability to go "green" by choosing Energy Star rated appliances and windows. These features may appear more costly in the beginning; however, they will save you money over time.

Disadvantages in building a new home

• You may have to wait up to a year to move in.


• New communities come with challenges. You do not know what the future holds. Your home may be worth $300,000, however if a builder decides to come in and construct a low-income property, it can bring the value of your home down.


• Costs can get out of control. The builder may have estimated a cost for the plan that you set up, however in a volatile economy prices can surge at any time for materials.