May 4

May 4 New Home vs. Old Home

Homeowner, Homeownership, Home Loans, Remodel

New Home vs. Old Home: Which is Right for You?

Your dream home: Is it a new construction? Or, is it an older home with unique character? Whether you’re a new or seasoned homeowner, the choice between a new and an older home can get very difficult, very quick. Sit back and grab a cup of coffee as we share a head-to-head comparison:

New Homes

So Fresh & So Clean

Familiar with that “new car smell?” Walking into a newly constructed home is actually very similar. The hardwood floors are squeaky clean (but not squeaky) the carpet is fresh and plush, the appliances are new and energy-efficient, and the walls are freshly painted (and free of tacky wallpaper). What’s more, when “you” build, colors, style and finishes are yours!

Options

Home-builders often offer custom finishes and building options that an older home just can’t provide without a lot of time, money, and sweat equity. With a new home, you know that your future property is move-in ready. While upgrades and options can add to the cost of your monthly mortgage, they often pay off in the long run via energy-efficiency tax breaks, fewer maintenance/repair costs, and remodeling expenses.

Easier to Purchase

The real estate market is HOT right now. This can make finding an old(er) home in your dream neighborhood difficult. In today’s market, homebuyers should expect to pay list price (or above) for an older home for an established neighborhood. The competition to purchase new homes can be far less intense.

Older Homes

Location, Location, Location

While new homes may sparkle, smell delightful and offer less maintenance worries, older homes in more established neighborhoods usually offer more in the way of unique detail and character including mature trees, eclectic landscaping and a variety of architectural styles. Typically, older neighborhoods often place home owners within walking distance of shops, parks, schools and restaurants.

Long-Term Investment

The competition for older homes in well-established neighborhoods might be fierce, but if you manage to snag one of these gems, it’s usually a great investment, especially if you plan on upgrading or making improvements. Speaking to potential neighbors with similar properties and researching the property before making an offer will help you determine the right price for both the home and neighborhood.

Cost

In many scenarios, the cost of an older home can be much less upfront than a new construction, which can mean lower mortgage payments. With an older home, you know what you’re paying for up front, and can make plans for home improvements and fixes down the road.

There is no one-size-fits-all strategy for home-buying, or perfect answers when it comes to purchasing the right home for you and your family. The good news is that the Credit Union has your back. If buying a home is on your mind and you don’t know where to start, RSVP today for our FREE home-buying seminar in the Shiloh/O’Fallon, IL area. At this free seminar, you'll learn about the mortgage lending process, how and why to get pre-approved, mortgage loan options, the role of your mortgage loan officer, how to search for a home, how to make an offer, plus much more!

Be sure to tune in for our next blog when we discuss rehabbing an older home!