When you begin the home buying process, one of the first things you need to decide is whether you are going to buy a previously owned home or whether you are going to opt for new construction instead. By carefully weighing the pros and cons of each type of home, you can decide which option is right for your unique situation. Below you will find an outline of some of the top differences between new and used homes so you can make an informed buying decision.
Energy Efficiency
When it comes to energy efficiency, new homes are generally far more efficient than their previously owned counterparts. Modern building codes are much more stringent in terms of energy efficiency than they were in the past. That means that you will usually have lower energy costs if you opt for new construction.
Character
If you are looking for a home with a lot of character, you will probably have better luck if you focus on previously owned homes. Today's building trends often use cookie-cutter designs, where houses in a development look almost identical to one another. Older homes, on the other hand, typically have more unique details, which can add to their charm.
Upgrades And Repairs
Most previously owned homes will require at least a few upgrades and repairs. The costs associated with renovations can quickly add up; especially if you need to work on major projects involving the electrical or plumbing systems, roof repairs or flooring replacement. When shopping for resale homes, you should always keep these added expenses in the back of your mind. Once you factor in the cost of any necessary renovations, you may find that it is cheaper to buy a brand new home instead.
Financing
Depending on your situation, it may be easier to finance a new home rather than a resale home, simply for the fact that many builders work closely with mortgage companies to secure great perks for their buyers. For instance, they may be able to negotiate benefits such as help with the closing costs or a lower interest rate on your loan. Over the life of your mortgage, a lower rate can make a huge difference in how much you pay. Typically, owners of older homes are not able to offer these same benefits, which may make it more difficult to find a deal that you can afford.
One of the best places to start the house hunting process is by determining whether you want to buy a new or used home. Each type of home has its own unique set of benefits and limitations. By carefully considering these factors, you can decide which option is going to work best for your budget, time frame and style preferences.
