Buying an old vs a newer home

[coreys]

I have a few months before we're going to need to seriously start looking for a house, so in the mean time I'm trying to evaluate what the better deal is--buying a older vs a newer home.

I am not quite sure how I should go about evaluating this. I was hoping someone on the forum could help guide me as to what I should be comparing, etc.

We are currently living in the dallas fort worth area of Texas where the housing bubble never really happened. My husbands new job is in the Plano area (a more pricey area than where we are currently living) and we would need to live w/in a 15 mile radius of the hospital where he'd be working due to the call schedule--thus my search for a new home.

So far in my search I have found some great homes very close to his work--but they are 15 years old + and need updating, etc. For the price, you could get a comparable sized home a bit further away that is 5 years old or less. I am very torn what to do.

The schools are not as great (but not awful either) in the newer home area-so we may need to look at sending the kids to private school down the road. I am not sure if the newer homes are more energy efficient-probably are-so that would be a factor too. Tax rates are 2.5% for the newer homes and 2.38 for the older homes.

What else should I be considering? Thanks for your help.

[Caoineag]

Well if it helps, I had two reasons for wanting an older home. The older ones are better construction and in my area, you want to know if the ground is stable or not (takes usually 10 years for the foundation damage to really be apparent). I also didn't want to pay for someone else's upgrades because I knew their sense of style wouldn't match mine. But you do need cash on hand if the house needs a lot of work.

[gamecock43]

Older homes have more updates than builder grade options. Generally they might have a fence (maybe a $5000 savings), mature landscaping (several thousands savings), window treatments, kitchen upgrades, and more land/ property.

But I am biased because I am a fan of recycling existing homes rather than encouraging the building of new homes and clearing land/digging up natural resources to do it. Even if the house has already been built, you are encouraging future new construction by buying it and passing on an existing house.

[jIM_Ohio]

Buying new in this environment should give considerable savings. But building is NOT for everyone. 9 month+ lead times can increase stress.

I have built twice and would build a third time. I did a survey on this years ago (built, bought or other) and results/comments were mixed.

If not on this site, the survey was done on early-retirement.org site.

Find the house you like
Find the area you like
do not let the age of the house be a criteria until both of above are met. Do not settle- houses are tough to get rid of if you do not like it.

[TBH]

Originally Posted by gamecock43

Older homes have more updates than builder grade options. Generally they might have a fence (maybe a $5000 savings), mature landscaping (several thousands savings), window treatments, kitchen upgrades, and more land/ property.

But I am biased because I am a fan of recycling existing homes rather than encouraging the building of new homes and clearing land/digging up natural resources to do it. Even if the house has already been built, you are encouraging future new construction by buying it and passing on an existing house.

Great points.

I am biased too--I just really like older houses.

As for what's a better deal? I think it depends on the house. We are about to buy an older house that has been very recently updated. There's some nice charming old features, but all new wiring, all new appliances, etc. Best of both worlds.

[snafu]

The most important factor to consider in buying a home is location, location, location. Nearly everything can be changed except the location. Make sure you are in an area that has all the shops and services that are important to your family and your lifestyle.

I'm not sure how energy efficient 5 y/o housing would be. Have a list of questions for your agent to ask the seller's agent. The owner can supply the Energy efficient ratings of furnace, water tank, windows, roof, insultation [attic, walls basement], toilets, shower etc.]. Ask about energy ratings on all appliances [fridge, stove, washer/dryer, dishwasher]. Ask for 6 months of utility usage [KwH] bills.

As a buyer, your offer can ask for new, energy efficient appliances and all window coverings. If you want an energy efficient home you would be able to choose these item-by-item for a new build which is better than 1-2 y/o.

If up-to-date decor is a sticking point, call a home stylist. The cheapest thing to buy is paint for the current [warm grey] colors. Painting is one of the easiest DIY and makes a huge difference. You can pick whatever you like.

As your agent to work out the value of landscaping, upgrades, fencing etc.

[Johansen8]

Why look for older homes that need work or speculate on whether new homes will increase fastest. I have always found great deals in all sorts of markets by looking for 1 unknown factor that is often a goldmine. Look for homes that don't need work per se look for ones that need an agent that actually does any work. I can find desperate sellers in any market on any day and that's where the best deals are often had. Not desperate sellers due to being in pre-foreclosure, not desperate sellers because of a trashy yard, and not desperate sellers because of needing repairs either. There are plenty of the previous type in every city, I'm speaking of the desperate sellers because their agents are totally worthless and these folks are hungry for a deal, almost any deal.

[tulsa_sr5]

One thing I've seen people get burned on newer developments is if they are still building right around you. If you need to sell while there are still empty lots available it can be brutal. My friends ended up having to discount their nice, 3yr old home significantly to compete.

I think with older homes you tend to have a better idea what the neighborhood will be like over the long run as well. Newer neighborhoods seem to change character as they hit the 5, 10, 15 year marks. Have fun with your search, I love shopping for houses.

[sheridan15926]

I'm not sure exactly where in Plano your husband's job is located, but we just moved from the DFW area (Frisco, which is practically a twin city to Plano), and there are excellent deals to be had there....I should know, because we took a $20K loss on our house in Frisco when we had to move...it was 5 years old, 5 b/r, 4 bath, 3,800 sf, granite countertops, etc., and we sold it for $260K (we paid $280K in Fall of '06). Frisco is a great place to find a reasonably priced house if it is w/i the 15 mi. radius...Allen would be another good choice.

[Goldy1]

WEll my home was bulit in 1975. It is lovely with nice updates such as super effiicent furnace, stamped concrete patio and and high quality wood flooring. however, the style is old. I have no master suite with an attatched bathrroom or walk in closet with everyone wants.

It hink it is pesonal taste if you like the updats the owners did.

The newer homes I have seen are very expensive and built very cheaply. ie "builder grade" everything such as paper thin carpet. I have seen this over and over. no thanks.
con to older homs is needign to replace stuff like a roof or plumbing.

[ukey]

The quality of the structure of the property always matters more than the age. Something with block construction will last ages.

Next to take note would be condition of the fixtures in the house itself, and if they are good quality, all the best.

Next, to do a total price comparison of improving the property to somethign which you would love to live in, and the most cost effective one would probably meet your requirements most.

Note the age of the property should not really be the veto factor for your decisions

[Ima saver]

I have never lived in an older home. I have always preferred new homes. Of course, my husband is a builder and a very custom builder. His workmanship is considered the best in the state and he builds every house as if it was going to be his home to live in. His homes are very energy efficient and our electric bill is one of the lowest in the area.
I like a new, clean house and one that will be built to exactly my liking.
House prices are running about $110 a square foot to build right now. (living area)

[whitestripe]

i have gone from renting a newish home (8-5 years old) to buying an older home (30+ years old).

DF and i both like the older style of houses, especially 70's style. It is harder and more costly to replicate that in a new home. A lot of people use energy efficiency as a pro for new homes - but down lights (which are a more modern thing) use much more energy than a single bulb with an antique cover. insulation can be added to an older home if it does not have it, but you may be surprised at some newer homes where builders have skimped. the newer house we rented had no insulation! the old house we bought does!
another thing is quality: you will pay top dollar for a good job now to build- or if you want a cheap job though, you'll get a cheap job! older homes you will find more than likely are made much better, people took more care back then. not neccesarily everyone, but you always hear people talk about 'the old days'...
of course, you may have to deal with rusty pipes, odd electrical wiring, things falling apart with an old house too.
new houses you may have to deal with fixing things the builder has not done, vacant lots around you, and the 'modern feel' of a house. if you like it, that's good. if you don't, well, that's bad isn't it?

[emilywebster07]

Very useful thread,since I am planning to buy house sometime this year.