Old House Vs. New House: Deciding Which Is Right For You

Like snowflakes and fingerprints, every home is unique to its owner. And depending on how you look at it, that can be fantastic or frustrating. As a home buyer, you want to find a house that fits your needs perfectly, but that can be hard to pin down with so many options. From square footage to yard size to curb appeal to home style to cost and so much more, there’s a lot to think about. So where do you start?

A great first step is deciding whether you’d like to buy an old house or a new house. Older homes and newly constructed homes each have their share of benefits and drawbacks. It’s important to decide which type of home makes the most sense for you.

Let’s talk about the main differences between old houses and new houses to help get you moving in the right direction.

Differences Between An Old House Vs. A New House

The biggest difference between old and new homes is that old homes are more lived-in due to their age. Older homes will likely have more unique architecture, features and overall character than newer homes, but they’re more prone to the issues that come with age, including wear and tear. You may need to make updates or renovations to make an old house livable again.

On the other hand, new homes likely have the most modern home upgrades and features. That means new appliances, smart-home devices, brand-new floors, energy-efficient features, etc. However, their design and floor plans may feel too “cookie cutter,” and they typically have much less yard space.

Many buyers believe that recently built houses lack the unique charm and character of older houses. And there’s also the matter of cost. Because of their newer features and appliances,

Advantages And Disadvantages Of New Construction Homes

Buying a brand-new home may seem like a safer choice than buying an older home, but despite a new home’s shiny exterior, there are some downsides to consider. To help you choose between an old home and a new home, let’s explore some pros and cons of brand-new houses.

Pros Of Buying A New House

Here are some common pros of buying a new home:

• Open layout: Many older houses have separate rooms for everything. New homes tend to have more open floor plans. Open-concept spaces often feel more spacious and can be easier to navigate than homes with many rooms and narrow hallways.
• Updated: If you buy a newly built house – or build a house – it will likely have all new appliances, cabinetry, etc., so you likely won’t have to worry about repairing or remodeling anything in the near future.
• Fewer renovations: New houses are new. They shouldn’t be run down or need serious upgrades or updates.
• Energy-efficient: Many new homes come equipped with energy-efficient features, such as programmable thermostats, ENERGY STAR® appliances, energy-efficient windows and more. These features can help you save on your bills and are kinder to the environment.
• Customizable: When buying a newly built home or building a home, you have a lot of control over how everything looks. If you’d rather have carpet or wood flooring in a room, that’s typically something you can have tailored to your demands.

Cons Of Buying A New House

Here are some possible cons of buying a new home:

• Higher costs: Since new houses are built with all the latest features and materials, they typically cost more than old houses. For example, a house built in 1972 may be listed for $300,000 today, while a newly built home with the same number of bedrooms and bathrooms may be listed for $349,000 or more. To see this for yourself, use the Rocket Homes℠ listing filters to compare homes with the same number of bedrooms and bathrooms built in different years.
• HOA fees: Many new homes are built in the suburbs, and homes in suburban neighborhoods are sometimes attached to homeowners associations (HOAs). HOAs charge homeowners fees to maintain the neighborhood and grant access to amenities. The fees can be anywhere from a few hundred dollars to over a thousand dollars a month.
• Upgrades can make a home pricier: New homes with all the bells and whistles can be very pricey. If you opt-in for all the available upgrades, you may pay thousands more than you imagined.
• Little to no negotiating room: You can’t negotiate much when buying a new construction home. Builders probably won’t budge on prices beyond adding upgrades to a new home.

Advantages And Disadvantages Of Older Construction Homes

Just like buying a new house, buying an old one has its benefits and downsides, too. Let’s take a look at some of them to help you choose between old and new.

Pros Of Buying An Older Home

Here are some common pros of buying an older home:

• Unique architectural style: Lots of older homes are built in unique styles you don’t see as much of today, like Victorian, Colonial and Saltbox homes. If you’re in the market for a home with character and historical flair, an older home is the way to go.
• Typically lower in cost: Because older homes often require more updates, repairs and maintenance, you can usually buy them at lower prices than newer homes.
• Established neighborhood: Another great thing about buying an old house is that it’s most likely in an established neighborhood. You’re more likely to be near amenities and developed areas in an older house. Newer homes are increasingly being built in the suburbs.
• Faster to buy than wait on a new build: If you buy a brand-new home from a builder or design and build a house, you’ll likely wait for months to move in or maybe over a year. With an older house, you can purchase it and move in within a shorter time frame.

Cons Of Buying An Older Home

Here are some possible cons of buying an older home:

• Higher maintenance costs: The older a home is, the more problems it’s likely to have. If you purchase an older home, you may spend more on repairs and maintenance than a homeowner in a brand-new house.
• Not as customizable: When you purchase an older home, you kind of have to work with what you get. The house has a set floor plan and design. While you can renovate to customize the home, it can be costly. And depending on the layout of the home and how it was built, you may not be able to fully execute your vision.
• Less spacious floor plan: Many older homes aren’t exactly open concept. Because older homes were typically built with separate rooms for every activity, some older houses may feel cramped even if they have a good amount of space – it’s just partitioned.
• Older appliances: When you buy an older house, not all the appliances are included – and the ones that are may be outdated. When you buy an old house, you may wind up with obsolete appliances that need replacing. It may make sense to buy a home warranty to cover any replacement costs.

Buying A New Build Vs. An Old House: Which Is Better?

When you’re ready to buy a house, you’ll need to decide what matters to you most. Deciding between a 20-year-old house with character or a new house filled with smart devices will also depend on your finances and lifestyle.

Make a list of all the house features you can’t live without to help guide your decision. Work with a knowledgeable real estate agent who can help you choose between the older and newer houses you tour during your house hunt.

Consider your answers to these questions:

• Do you want a large yard, or is minimal outdoor space okay?
• What does your dream home look like?
• Do you want to live in a rural area, a city or a suburb?
• Do you prefer all new appliances and updated features, or are you comfortable with a home with older features?
• What’s your budget?
• Are you willing to invest time, energy and money into maintenance and renovations?

The Bottom Line: Choose A Home That Fits Your Goals, Old Or New

From new construction homes to old houses with character, home buyers have a lot of options. Consider your needs, wants and personal preferences before you begin house hunting. Old and new homes have plenty to offer buyers. Do your research and tour homes with your house-hunting checklist to find the right type of home for you.

Ready to take the next step on your home buying journey? Chat with a Rocket Homes Verified Partner Agent today to explore your options and get started with your home search.