Purchasing a home can be emotionally and financially stressful. That’s why, when it comes to home buying, it’s the smart move to your wallet, instead of just your heart.
To make the best decision, the first thing you need to know are the pros and cons between purchasing an expensive new home versus a cheaper fixer-upper with potential.
Here are three things to think about to help you decide which home is best for you:
Choosing a brand new home may seem like the clear choice. New construction means there are generally less problems with the structure, including appliances, heat, or air—the caveat being that you don’t always know if the builders used cheap construction materials, or if it’s a cookie-cutter design. And while there may not be an initial concern when it comes to upgrades, that higher price you’re paying may not tell you the whole story.
That bring us to the alternative, a fixer-upper to remodel.
As we grow into a more “do-it-yourself” society, the fixer-upper starts looking like more and more fun. And because older homes usually come in at a lower cost, the flexibility to create the home you crave may sound super appealing. The downside being that not every 50-year-old home has had meticulous care. While you will invest in renovation, you will also have the benefit of knowing you are customizing your home to your style and needs.
It should be noted that property taxes can also become a major expense for homeowners—expenditures that don’t vanish when you pay off your mortgage. Some places offer a property tax or real estate abatement to help alleviate some of these costs, allowing consumers to buy ‘more home’ for the same price. Additionally, property tax abatement can improve a home’s resale value as long as the abatement is in effect.
Effort is in the Eye of the Beholder
New homes are often designed around a preconceived construction plan, meaning there are probably a half dozen or more homes in the area that are exactly like yours—right down to the toilet paper holder.
Sure, they’re beautiful homes, but if you’re looking into making it your own, you might struggle to make significant changes outside of amenities. Of course, it also means that things are perfectly designed for maximum efficiency.
But not everyone wants a cookie-cutter home.
Enjoying the quirks and originality of an older home has its appeal, for sure, but with that originality comes the extra work. If you choose the older home, you’re more likely going to need to put in the work to make things look and feel exactly how you want, which again comes down to effort and cost.
If you like modern efficiency, new construction is probably for you. If you want a truly unique home, don’t shy away from investing in remodeling an older home.
Do Your Homework
Whether you decide to go with the new home or the old, you should always do your financial homework. Make sure you trust your agent, lender, home inspector, contractor, and appraiser; and always ask tons of questions. We offer our clients references, portfolio of previous, similar projects and a detailed estimate before a project starts.
This is a major financial decision that will change your life—it’s up to you if it will be a positive or negative experience.
Take a look at our remodeling process, then stop by and visit us at our Kitchen and Bath showroom so we can determine the best remodeling situation for you.