Should You Buy a Used or New Home?

Once you make the decision to buy a home, you immediately have a second one to make. Should you buy a used or new one? There are pros and cons for both.

Most people automatically think new is better than used. It is in many cases. With real estate, however, there are a bevy of factors that make the determination a bit more complex.

The pros of a new home include the fact that, well, everything is new. The home is also designed to most modern criteria including energy saving appliances, compliance with all safety regulations and so on. Do to the fact it is new, such a home should be easier and cheaper to maintain as well. All this being said, there are some downsides as well.

How could there be downsides with a new home? Well, let's look at them. First, you rarely are buying a complete home experience. While the home is in perfect shape, many developments now require you to do the landscaping or pay an additional fee to have the developer do it. Another downside is the price tends to be more fixed. A developer simply doesn't have a lot of room to move on price. As a new property, this price will often be much higher than homes in the area that are only a couple of years old.

So, what about used homes? As you might guess, there are pros and cons as well. Let's consider the positives first. Price is a big one. You are going to pay less than for a new home. Style is also a big issue as you may be unable to find the style of home you like in newer developments that tend to go in trendy directions. Another positive with a used home is you can accurately predict the neighborhood. With new developments, one is not always sure how things will develop with so many people moving into the area. Finally, used homes tend to be complete, to wit, you just move in. Although you will probably want to updates, there is no absolute need to.

On the downside, a used home is going to be costlier to maintain since it has wear and tear. Along this line of thought, the home is also going to be less energy efficient. Finally, the very nature of the home may be obsolete. As new gadgets come on the market, your used home may be unable to handle the wiring or have the appropriate space for them. Basic issues like piping may need to be changed and so on.

So, which should you purchase? There is no correct answer. Your goal should be to find something you like and can afford. Then weigh the tradeoffs of new versus old and make a decision.