Home > 2014 > Mortgages > Should You Buy a New or Existing Home?

Should You Buy a New or Existing Home?

Advertiser Disclosure Comments 0 Comments

When it comes time to stop renting and you are ready to own a home, most people have to decide whether to buy a new home or an existing one.

Here’s what to consider as you make your decision.

Brand New

The smell of new house may not be as popular as the smell of new car, but there are some advantages to being the first to live in your home. One — and this may seem obvious — is that everything in a new home is new. Appliances are still covered by warranties and have years or decades before they must be replaced.

In general, new homes require less maintenance. It will be years before you have to worry about replacing the roof, the water heater or the windows. New homes tend to have the latest energy-efficient and safety features.

There are some cons to consider. New homes generally cost more per square foot. Plus, sometimes people assume that because the home hasn’t been lived in, it will be perfect. This can lead to disappointment when something goes wrong or breaks.

For new homes that you are able to customize, you may not get exactly what you always dreamed of. For example, you may have to compromise on cabinets because of cost. And you have no one but yourself to blame for that tile choice once you grow tired of it.

Slightly Used

Buying an existing home can be cheaper per square foot than buying new. You will be getting more value for your dollar. Plus, you can use that extra money to make renovations or improvements. In this way you can take the existing home and make it your own. If you are someone who enjoys do-it-yourself projects, this can even be fun.

When you buy an existing home, you can usually move in sooner than a new home that may have to be completed or customized. The time between picking your location and moving in can be much shorter. Plus, when you buy a new home there may be a lot of extras that you still have to take care of — like choosing appliances or landscaping. In an existing home, these are typically included.

Know Yourself

The best way to decide which is right for you and your family is to consider the differences. Think about your strengths and needs. Ultimately, you want to assess what works now and will work in the future. If you need to move in soon and are looking to save money, buying an existing home can be best. If being the first to live in your house is important and you don’t want to worry about maintenance, buying a new home might make the most sense.

More on Mortgages and Homebuying:

Image: Image Source

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.