Should You Buy a New Home or an Old One?

If you're thinking about purchasing a home, an important factor to consider is whether you're interested in a new construction or an older home. It's easy to overlook a few of the components that really set newly-built homes apart from their previously constructed counterparts. Look below for a  few of the pros and cons of each option.

New Homes

The Pros:

• Incentives: Many new homes come with a variety of incentives designed to appeal to potential buyers. Developers want a subdivision that's full, not a half empty one with For Sale signs set up on every third lot, which is why they offer a variety of perks to steer you in their direction. Incentives might include lower sales prices, extra features such as customized kitchens or money back at closing options.
• It's New: Well this is obvious, but there's something to be said for moving into a home that is untouched. It's free of the history, decor and stale remnants of its previous family or families. You get a virtual blank slate upon which to create the home that suits your specific tastes and styles. Newer homes also tend to be more modern and designed to fit current needs rather than those of the past.
• Fewer Repairs: Generally new homes will have fewer repairs and those repairs will costs less. From major stuff like electric that's up to code to new appliances, repairs in newer homes simply tend to happen less. 
• Young Community: This doesn't necessarily apply to age, though it can. Ultimately subdivisions with new homes means you get to be part of the community from the ground up. Everyone is in the same boat having purchased a new home in your community so making friends and organizing social gatherings may happen easier than approaching your neighbors in a community that's existed for fifty years.

The Cons:

• Higher Prices: New homes can get pricey especially if they're in desirable areas. Since everything has been purchased new, such as appliances, and a range of contractors performed services from plumbers to carpenters, costs can get rather steep.
• Location: Most cities and areas close to businesses saw homes built around them decades ago. Thus you may find if you buy a new home, you're commuting twenty or thirty minutes to work everyday. Choosing a new home often means living further out in the country, which can also mean higher taxes because the city pays more for water, sewer and other utilities. 
• Less Room to Roam: Many newer communities are divided into smaller lots, therefore, smaller yards or lawns. This can be nice for the mower in the family, but it can be a pain if you have kids and pets who want space to play outdoors.
• Bad Construction: Since a new home hasn't stood the test of time, you're walking in blind in terms of construction durability. Check the builder's track record and make sure that other homes he's built previously are still in good shape. 

Older Homes

Pros:

• Great Deal: The last several years have seen a definite spike in homes for sale, which bodes well for the buyer's market. Many people own their homes outright and may offer land contract financing or a lower price to sell a house that they no longer want.
• Charm: Many people love the character that is rarely found in newly built homes. From original hardwood floors to elaborate crown molding, many older homes are reminiscent of the era in which they were built.
• Established Area: When you buy an older home, you move into an existing community. Often these communities sprang up for a reason such as nearby schools, churches or parks. 

Cons:

• Maintenance and Repairs: Older homes have older appliances, furnaces and whole-house systems. When you buy a home, you may not be aware of certain issues such as a basement that floods every year or a section of the roof that is in poor condition. Home inspections can catch some of these potential repairs, but many will be overlooked, so it's a good idea to buy the home knowing that some maintenance may be necessary.
• Higher Utility Costs: Older homes are often less energy efficient because they use older appliances, may have poor insulation and drafty windows. Utility costs can get very high, especially if you live in a state such as Michigan with long, cold winters.
• Ghosts of the Past: Probably no literal ghosts, though you never can tell, but definitely you will see aspects of the home's previous inhabitants reflected in the home's design, wallpaper and decor. Plan to spend some time eradicating the old touches to make the home your own.

Whether you're in the market for a newly built home or an older house, I can help you find the perfect property for your needs. As an East Lansing realtor, I specialize in the purchase and sale of Lansing area homes. Please contact me today at MyRealtorRob. 

Many Young People Not Buying Homes

Once upon a time you went to school, started a career, got married and bought a house. It was sort of like a template for life in the United States and a lot of young people strove to achieve each of those milestones. Today, the template and, more so, the grid that we lay it upon has changed dramatically. Recessions and bursting housing bubbles, struggling economies and overwhelming student debt are only a few of the major transitions that America has seen in the last decade. These changes have a variety of ripple effects on people's lives and one effect is that fewer young people are purchasing homes.

According to a February 2012 article in The Atlantic, half as many young people were getting mortgages between 2009 and 2011 compared to ten years earlier.  The article cites a range of reasons for fewer young homeowners including higher student debts, fewer marriages, decreased earnings and a recognition that many people lost big time investing in real estate. It's no wonder that these factors influence entire generations who might otherwise have walked the path of home ownership like their parents before them and their parents before them.

One young person who wrote into The Atlantic stating their reason for not purchasing a home said, "My generation wants more freedom to travel, to see and live in new places and to experience new cultures. In general, buying a home can seem like a rejection of freedom, and anytime one of my friends gets a home, I just can't help but think how restricted they now are, whether that's true or not." This implies a shift of priorities for younger generations, perhaps moving away from security and towards excitement.

Another respondent said, "I wish I had bought straight out of college. (...) Home ownership is a big commitment, but in my opinion renting is financial suicide." In this person's case, buying made more sense, especially after they spent years paying rent and still had no place to live unless they continued to shell out the monthly payment.

Ultimately buying a home, like most things, boils down to personal situation and preference. A young, single person loaded with student debt who likes flexibility may hate home ownership. On the other hand, young people who have graduated, found a good job and intend to stay put for a while could benefit from purchasing a home and building equity rather than giving their hard earned money to a landlord each month.

If you're considering buying or selling real estate in the East Lansing area, please get in touch with me at MyRealtorRob. With Michigan State University as something of a hub in our community, we have a lot of students and student families who like to purchase while they attend school. If that sounds like you and you would like to learn about the affordable East Lansing housing in the area, send me an email.