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Paul Hamilton/Getty Images May 16, 2022 TJ Porter is a contributing writer for Bankrate. TJ writes about a range of subjects, from to . Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. Bankrate logo The Bankrate promise
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next. Bankrate follows a strict , so you can trust that we’re putting your interests first. All of our content is authored by and edited by , who ensure everything we publish is objective, accurate and trustworthy. Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible. Bankrate logo Editorial integrity
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Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. If you’re in the market to , you’ll likely wind up looking at lots of listings and touring many different types of properties. You may see some that are brand new construction, and some that are a century old. Both have their appeal. If you’re not sure whether you want to buy a new or old home, here are some of the many factors to consider.
Old vs new homes
Many buyers rank the age of a home as one of the least important factors when deciding which home to buy. However, experts think it should be higher on the list of considerations. While many aspects of housing have held true across the decades, there are plenty of different trends that affect homebuilding over time. Depending on the age of a home, you will notice different features, building methods and design choices. Historic homes
Older homes are likely to have very different design sensibilities than modern ones. This is in part due to technological innovations, but also differing tastes. For example, truly historic homes often lack ductwork or central air systems, because those technologies did not yet exist when they were built. They may also boast old-school features like cast-iron radiators, clawfoot tubs and Victorian-style woodwork. And they tend to have smaller, more individual rooms, as opposed to the spacious open floor plans of modern homes. These homes will also have different architectural styles than a new build. For instance, midcentury often utilized unusual shapes and colors. And many neighborhoods built in that era have a , with the homes within each development looking very similar to each other. New-construction homes
If you’re looking at , you’re likely to notice some current trends in how they are designed and built. Some of the most include metallic roofs and curvy building elements. You may also see greater use of outdoor space — something that became much more important to homeowners during the pandemic. Other design considerations may also be apparent, such as smarthome features, central air systems and living rooms oriented around space for a TV or entertainment center, rather than a fireplace.
Pros and cons
If you’re unsure of which style of home is best for you, consider the pros and cons of each. Old home advantages
Location. Older homes are typically located closer to the center of towns, and in more walkable areas near more amenities. If you want a really central location, you may need to buy an older home. Speed. If you’re buying a new home, particularly one that’s currently being constructed, you might face construction delays or supply-chain issues that slow down the process. With an old home, that isn’t a concern. Value. A , or one with a desirable architectural style in a historic neighborhood, may be worth more than a newer home of similar size. Charm. Unique architectural details and flourishes give an older home personality that might be lacking in a newer, less quirky build. Old home drawbacks
Outdated technology and building codes. Technology has changed a lot over time, obviously. Old homes may use older heating and cooling systems or have fewer electrical outlets than you’d like. Similarly, building codes and standards have changed as well. , and bringing things up to today’s safety standards will likely be costly. Expensive upkeep. Brooks Conkle, a Mobile, Alabama–based Realtor, points out that ongoing maintenance costs can be higher in an older home. “Watch out, as the repair costs for older homes can quickly escalate,” he says. “Be sure to get a home inspection and really understand the home well. A newer home is (most likely) going to be in better condition and more energy efficient.” Small or non-standard measurements. Older homes are often not designed for the size of modern appliances or furniture. You might find that your garage is too small for your car, or that you need an unusually sized refrigerator to fit it in your kitchen. New home advantages
Energy efficiency. Newer homes are often designed with energy efficiency and upkeep costs in mind. They are usually much cheaper to keep heated or cooled. Amenities. Newer homes can also take advantage of modern technology. That means they tend to already have conveniences like central air and dishwashers, for instance, whereas older homes might have to be retrofitted for this equipment. Customization. If you’re buying a new-construction home, many builders offer the opportunity to customize it to your specific desires. Home warranties. Newer homes, especially brand-new constructions, often come with . These protect you from major expenses that might pop up, such as unexpected structural issues or even problems with appliances. New home drawbacks
Homeowners associations. Many new developments are managed by a . While that’s not necessarily a bad thing, it does mean paying extra fees and dealing with restrictions on how you can use your home. Price. With all their modern bells and whistles, newer homes are often more expensive than older ones. Especially brand-new construction, where the buyer will be the first person ever to live there. Competition. In a busy real estate market, there’s a good chance that many people will be competing to buy the same home. If a new home is in a desirable location and doesn’t require any repairs, you’ll probably face stiff competition, and likely even a . FAQs
What are typical differences between old and new homes
In general, newer homes will be constructed with more modern technology and materials, and up-to-date building and safety codes. Older homes might need improvements to meet current standards. Older homes are also designed differently than newer ones, which may or may not be to your taste. New homes will have layouts conforming to modern trends. Are old homes built better
There’s a common perception that older homes are built more solidly than newer ones, or that “they just don’t make them like they used to.” Certainly some old homes are very well-constructed and have stood the test of time. But the truth is that construction quality varies from home to home, regardless of its age. Whether you’re buying a new or old home, you should always do a home inspection to identify any potential issues. Do new or old homes cost more
In terms of sale price, new homes will generally cost more than old homes. However, older homes can have higher carrying costs, such as heating/cooling, maintenance and utilities. Which type of home should I choose
Choosing a new or old home is largely up to personal preference. Some people like lots of character and personality, while others want a sleek, modern design with all of today’s amenities. will be able to help you find new and old homes to tour, if you want to get a feel for each type of home in your area. Whichever you choose, make sure you do your due diligence and consider how all of the costs of owning the home will affect its affordability. SHARE: TJ Porter is a contributing writer for Bankrate. TJ writes about a range of subjects, from to . Michele Petry is a senior editor for Bankrate, leading the site’s real estate content. Related Articles