Buying New Home VS Buying Older Home

It used to be that new homes cost more than older homes, but that's not true across the board anymore. One reason today's construction is cheaper is because it's less expensive to use 2 x 4 pine framing or engineered wood over 2 x 6 redwood and to use drywall instead of plaster.

 Buyers who look at inner-city homes in desirable neighborhoods will find, on average, larger lot sizes, and the homes will cost more than entry-level new homes being developed in new subdivisions outside the city.

 Here are advantages and disadvantages to consider when determining whether you should buy a newer home or an older home.

Advantages of an Older Home

• Old world construction.
• Larger yards.
• More character found in Craftsman bungalows, Victorians, Greek Revivals, Tudors or Colonials with arches, hand-carved decorative appointments, and stained-glass windows.
• Longer-term neighbors and established neighborhood.
• Mature trees and vegetation.
• Closer to downtown entertainment and restaurants.
  

Drawbacks of an Older Home

• More maintenance with Chimneys and stone foundations that require tuck pointing. Floors may slope.
• Expensive to replace wiring and plumbing. Tree roots break up sewer pipes. Galvanized pipes are rust-prone. Sensitive electronics require grounded wiring, and Romex can't be mixed with knob and tube.
• Smaller closets, storage space, garages.
• Kitchen, Baths, porches all need updating.
• Often more expensive due to their location near mass transit, shopping,
• Smaller square footage on average.
  

Advantages of   a Newer Home

• Little maintenance for the first 5 years.
• Modern conveniences such as built-in dishwashers, refrigerators, microwaves and wine coolers, master suite baths, work-out and media rooms; wiring systems are networked.
• Builder's warranty.
• Energy efficient.
  Many homes are built with solar panels that can turn back the electric meter. New appliances use less energy. Walls, ceilings and floors are insulated. Dual pane windows retain more heat in winter and keep the home cooler in summer.
• Built to code.
  Consumer safety issues are continually addressed in new construction and conform to building codes.
• Emotional factor of newness.
  Let's face it, there's nothing like owning something that's brand new, never been used, whether it's a car or a home.
• Less expensive.
  If the new home is not custom, it's likely to cost much less per square foot than an older home in the city.
• Greater square footage, on average.
  It's typical to see two bedroom homes with 1,000 square feet sell for the same as a two-story, 2,500 square foot home in the suburbs. When builders can't build out, they build up.

Drawbacks to a Newer Home

• Tract homes have similar floor plans.
  Some say tract homes are identical to each other; they have no individuality.
• Immature vegetation.
• House settling.
  New houses settle. It happens everywhere, regardless of the type of soil. Settling causes cracks in foundations, walls and door frames.
• Longer commuting distances to downtown.
  If you want to be where the action is in a metropolitan downtown area or avoid the drive to work in rush-hour city traffic, the distance from downtown might make a difference to you.

Written by Elizabeth Weintraub, www.about.com
Abridged by Lois Szydlowski