Buying a Newly Constructed Home or Investing in an Old Home – Know the Differences

When the time comes to buy a home in Cape Coral, you will be faced with a number of important decisions. Among these decisions is the option to buy either a newly constructed home or investing in an old home. It may seem like a simple decision. However, there is much that needs to be considered when choosing between the two. Cost, location, size, maintenance, and design are just a few of the several different aspects homebuyers look for when buying a home. When it comes to comparing newly constructed homes and old homes, understanding the general differences can help you focus your search throughout the process. It is critical to evaluate all variables before making that final decision. Therefore it is important to know the differences. By comparing the two, you will discover which option meets both your financial and lifestyle needs. 

The Differences 

Newly constructed home  – there are definite advantages to a newly constructed home that are beneficial to the homeowner. You have the ability to choose the floor plan and the design you prefer.  You also have the ability to install up to date amenities and state of the art appliances if you choose. This could include green appliances for more energy efficiency. On the other hand, you may be limited as to where and when you can build your home, and you may find that the costs of the new construction outweigh some of the lifestyle advantages. If you’re building a custom home, it could take several months longer than moving into an old home. A custom home can take up to six months to build, sometimes longer, depending on what and how the home is being built. This time frame also varies depending on the market and the builder. Of course, this isn’t a factor If you’re looking at newly constructed homes that have already been built. 

Old homes – offer a bit more flexibility for the buyer, both in cost and location. However, just like a newly constructed home, they too have their advantages and disadvantages to consider. For starters, financing can sometimes be difficult to secure. Additionally, buying an old home may require several repairs and/or renovations which can add to the cost quickly. For example, plumbing failures and electrical issues. You may also experience fewer amenities, outdated appliances, and less square footage than desired. 

Breakdown Pros and Cons 

As you can see, there are many aspects to consider when deciding on whether to purchase a newly constructed home or an old home in Cape Coral, Florida. These two options are very different in what they offer and no two home buyers will come to the same conclusion after reviewing the pros and cons. For some, new construction fits their needs perfectly and will be the better choice. Whereas for others, investing in an old home will check off all the boxes and be the right choice for their lifestyle goals. Some people just don’t like hand-me-downs while others like things that have a lot of history, this is all dependent on your preferences. Whatever conclusion the decision comes to, it is important to fully consider the advantages and disadvantages of buying either a new or old home. 

If you’re in the market for a new home, use the table below to help determine the best option for you and your family.

Newly Constructed Home Old Home
Pros
  • Active warranties
  • Customizable floor plans and design
  • Upgraded features and appliances can be included in the mortgage
  • Green appliances for better energy efficiency
  • Fewer maintenance costs associated with repairs or renovations
Pros
  • Usually less expensive, with more opportunity to negotiate the price
  • More location options
  • Established neighborhoods
  • Older houses tend to have more character 
  • Property values can be determined before purchase
  • Lower tax profile
Cons
  • More expensive than resale properties
  • Property values are unknown
  • Ongoing construction in the neighborhood
  • Greater Tax Burden
Cons
  • Smaller inventory of acceptable properties
  • May require extensive repairs and/or renovations
  • Fewer amenities/older appliances
  • Financing can be more difficult

 

Buying any property is an investment in your family’s future and with investment comes major financial commitment. You should be comfortable with the purchase price, but also with the way in which your new home will support and improve the lifestyle for your family. Take the time to review all aspects of your purchase, and carefully consider both the pros and cons of a newly constructed home and an old home.

If you’re looking for either, visit us at Carney Quality Construction, new construction home builders in Cape Coral, and give us a call!  We have been voted best home builders in Cape Coral, FL three years in a row.  Remember, at the end of the day, it isn’t about buying a house, it’s about buying a home and what better place to buy a home than Cape Coral, FL.