Why Buy Old Home Instead of New One?

Reprinted from Realtor.com       Official Site of the NATIONAL ASSOCIATION OF REALTORS

Q: Why do people buy pre-owned homes? Building new seems to be the way to go, with all new “stuff” and warrantied products and appliances. Why spend the SAME amount for an older home with older “stuff”? I just don’t get it! – Heather in Maine
A: Some people like the character of older homes or an established neighborhood. It’s a matter of preference really. If you like a new home, go for it! Using a Realtor to purchase a brand new home is also smart, as often they can negotiate on your behalf and get the price of the new home down with the builder and maybe even get them to throw in some extra upgrades. I recently saved a client $20,000 on a new home purchase, and it didn’t cost my client a thing as the buyer because the builder pays the Realtor’s commission.
Liane Jamason is a Realtor® with Keller Williams in Tampa, FL.

A: In a normal market, a house that is about 2-4 years old is the best possible buy. When you buy new, you pay full price. When you buy used, you pay for the value the item adds to the house. Just say you spend $40,000 on a new deck; the resale value that the deck adds to the home will only be a small percentage of it’s new cost. Resale value is different in every market. Also, 2-4 years is enough time for the house to shrink and settle. If it’s holding up well, odds are you’ll get a lot more good years out of it.
If you’re in a declining market, you may be able to get a good deal on a new home that the builder just wants out of, then that would be the way to go. Some builders today have dropped their prices to less than what they sold to the neighbors just a couple of years ago. You may be in luck!
John Manchester is a Realtor® with Execuhome Realty in Bel Air, MD.

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