1. Location. Location, including the lot,
neighborhood, and proximity to desired places, is traditionally the most
important factor of home-buying. Do you want to be more towards the suburbs or
city center? Older neighborhoods are more likely to be close to the center core
and, with their mature landscaping, can create a stronger sense of community. You also want to make sure that an area is safe--drive through the neighborhood at night to see how well lit it is, and whether people are out jogging, walking their dogs, etc. The police station can give you information regarding crime rates.
2. Price & Taxes. You want
to feel good about buying your home, which can be accomplished by spending less
than your maximum budget. Spending all your money on a home can make you
"house poor," meaning you have insufficient savings to maintain your
lifestyle (for example, travel and take vacations). Used homes tend to be less
expensive than new builds. Remember that the asking price is always negotiable,
and also that there are many additional expenses that accompany home ownership.
Taxes vary based on municipality and school district. Many older
households aren't required to pay for local bonds associated with new
development (for example, schools and parks). It's best to research taxes
before you decide to put an offer on a home.
3. Maintenance & Repair. Get a
home inspection when buying a lived-in home, as the home likely will show signs
of use. Check the status of all major working systems, such as electrical and
plumbing systems. If something needs to be repaired or replaced, this should be
considered when pricing the home. You can also use repairs as a negotiating
tool ("contingent upon the fixing of..."). You may face some small,
DYI projects. If you're up for this, a used home may be right up your alley. If
you want a home that's 100% turn key, a new build may be the way to go. It's
virtually the only way to eliminate the natural wear and tear an older home
undergoes.
4. Layout. Older homes have a more
traditional floor plan, often with formal living and dining rooms. They also
may be more closed off. The 5-level split is a popular floor plan for new
construction, and oversized family rooms that open to the kitchen are also
modern and common. Layout is important because it's hard to change--you may be
able to knock down a wall or two, but it's a major renovation that's much more
complicated than switching gold cabinet pulls with bronze ones. Function runs
right alongside layout. Older homes can be functionally obsolete--they have
minimal closet and garage space, for example. When searching for a new home,
ask yourself how well the space is used to suit your needs.
5. Features. Older homes, especially former
model homes and custom built homes, tend to have more special features, or
character, than new builds. This could be in the form of built-ins, security systems,
landscape, etc. Again, ask yourself how important these features are, and if
you are willing to compensate for missing essentials. If you love gardening and
spending time outdoors, it may be no big deal that your home comes with little
to no landscaping.
6. Resale Value. In terms of resale value,
older homes are safest because you can track how much they have appreciated or
depreciated over the years. Even though this is a rough measurement, it gives
you some idea of resale value. Whether or not you have kids, homes in good school districts often have good resale value. It's good to keep resale value in mind even
after you buy a home, especially if you customize or renovate the home in
some major way. Try to put money into the home that you can reasonably expect
to get out of it. Kitchens and bathrooms have good returns on investment,
while adding a pool can actually hurt sellers.
Still not sure whether you'd prefer a new build or resale? Click here for a more thorough explanation of key differences between the two, or contact me for help.
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