Which Type of Home is Right for You?

March 27, 2015 | by Katie Claflin

Categories: Construction, Home Rehabilitation/Repairs

You’ve decided to buy a home—congratulations!  But which type of home should you buy?  The choices seem endless. Should you buy a newly built home in a brand new neighborhood or an existing home in an older, established neighborhood? 

TSAHC staff has done some research to help you make your decision.

Benefits of a New Home

1. New homes are ‘move-in ready’ and should not require any updates.  If you are building the home, you can also customize the home to your needs and taste.
2. New homes will require less maintenance for several years down the road, and many repairs may still be covered under a warranty.
3. New homes are usually more energy efficient, which can save you hundreds of dollars a year in utility bills.

Benefits of an Older Home

1. Older homes are often cheaper to buy than new homes, particularly if you buy a ‘fixer-upper’ and make the repairs and upgrades yourself.
2. Older homes are often located in more established neighborhoods, which can include mature trees.  Purchasing in a well-established neighborhood also gives you the opportunity to learn more about the schools before you buy.
3. Older homes are often built on larger lots than new homes, which means more space between houses and larger backyards.
4. And finally, in most metropolitan areas older homes tend to be located closer to the city center, with new construction taking place in the suburbs.

Ultimately you should base your decision on your household’s financial needs and priorities.  If you've always dreamed of living in a historic neighborhood, you’re probably better off buying an older home.  If the fear of repairs keeps you awake at night, you may want to consider buying a new home. 

Want to know what other people prefer?  The mortgage listing company Trulia conducted a survey in 2014 asking more than 2,000 Americans whether they preferred a new or existing home.  Click here to see the results.

For more information on buying a new vs. existing home, check out the following resources:

http://www.bankrate.com/finance/real-estate/buy-a-new-or-used-home-2.aspx

http://www.newhomesource.com/resourcecenter/articles/new-homes-vs-resale-which-is-right-for-you

http://www.forbes.com/sites/trulia/2014/06/20/the-pros-and-cons-of-buying-a-newly-built-home/

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On the House blog posts are meant to provide general information on various housing-related issues, research and programs. We are not liable for any errors or inaccuracies in the information provided by blog sources. Furthermore, this blog is not legal advice and should not be used as a substitute for legal advice from a licensed professional attorney.