Should You Buy a New or Existing Home?

Almost everyone is drawn in by the shiny hardware, glimmering hardwood floors and freshly painted walls of a newly constructed home.  There's a special feeling in being the first person or family in a new home.  However, deciding between a new home or existing home does have its trade-offs. 

The following are a few things to contemplate when determining if a new or existing home is right for you:

Pros of a New Home

• Builders often offer a warranty to cover defects, appliances and more.
• There is less of a concern about dangerous building materials like asbestos and lead. 
• New homes are usually better insulated which means lower energy costs.
• Newer systems and appliances generally mean better energy efficiency.
• Some new homes are not completely finished so you can select certain finishes and floor coverings.
• Newer building materials like cement board or vinyl siding mean less maintenance.
• Some developments are "maintenance free" communities.  Almost all of your building and grounds are taken care of for you.
• Depending on a number of factors, like the state of the economy or the stage of development, builders may offer special incentives or upgrades for free or very low cost. 
• Newer homes tend to have newer wiring that matches the latest in technology.
• Updated wiring means no worries about outdated building techniques and materials like knob and tube wiring.
• Newer homes tend to offer more closet space.
• Many offer recreational facilities like pools, fitness rooms and playgrounds. 

Cons of a New Home

• New subdivisions may have fees or assessments for new owners.
• Almost any home is subject to city or county building codes and covenants, but new subdivisions and developments may have even more restrictive covenants that prevent you from painting your house a certain color or putting up a fence without approval.
• New subdivisions are notorious for being built with winding streets and dead-end cul-de-sacs that go nowhere, leaving you with a longer commute to work and local amenities.
• Depending on the location of the development, higher taxes or fees may be assessed to bring water and other services to the home.
• Planner developments are often "cookie cutter" homes, with only a few architectural styles. 
• If the development is still new you may have to deal with other homes being built around you, meaning you have to deal with construction equipment, noise, debris and other sites and sounds associated with construction.
• If you buy in a new neighborhood and look to resell shortly after, you'll be competing with the homes still being constructed.  Buyers tend to like the newer homes and you may have problems selling your home. 
• New houses tend to be more expensive than existing homes. 
• New developments are often built in more rural areas.  Shopping and amenities often lag behind, so you have to travel further for groceries and other necessities. 

Much of the decision of buying new or existing is based on personal preference.  Everyone likes the "clean and new" feeling of new construction but don't discount an older home just because it may need some work.  If you have some talent and a desire to do some of your own work, you can gain "sweat equity" in an older home.  Also, if money is a problem, a less expensive existing home can allow you to renovate in stages as more money becomes available.