Expert: Jessica Bryan - 6/6/2008

Question
Hi Jessica,

My brother and I both plan to buy homes in the Las Vegas area next spring (I am also considering the SE FL area as an alternative).

We'd both rather have new homes, but there seem to be good deals on older homes as well.

If you were buying a home and you had your choice of new or older homes, which would you choose (considering that the older home was maintained well)?

I'm trying to weight the financial pros and cons of new or older homes. What major expenses do we need to consider, besides replacing the A/C, heating, roof, windows, carpeting, etc.?

Is 10 years the cut off point when a home starts to need a lot of work? Or is it 15 or 20, generally?

What else do we need to consider when buying a new or older home?

Any advice would be greatly appreciated.

Thanks,

Stephen


Answer
Dear Stephen;
First, I want to applaud you for thinking this through so carefully.  You brought up so many good points that many forget when they are looking at homes and simply considering the price.  

To answer your question, Unless you are looking at a specific style of home that is only available in an older home, or a specific neighborhood that dictates the age of the home as well, I would say that buying a home over about 12 years old might require some work on items that have outlived their function.  Air conditioning systems, appliances, heaters, roof and windows all begin to have problems after about 10 years. Cosmetic items such as grouting, tiles, paint, trim, wood and other interior features also begin to look quite worn after about 10 years. (This of course varies depending upon how well the home is maintained and how it was built to begin with.)  There are also some obsolete features or outdated features that require some expense if you like the look of the new interior materials and designs.  I often see homes that are older than about 15 years that have had many updates and renovations done that make the home very updated and livable.  Things to look for would be all new (or newer) appliances, a new water heater, a new air conditioning system, and new carpet.  If the home is over 20 years, check the roof because it usually doesn't last more than 30 years.  

As for other things, such as plumbing and/or electrical problems, these begin to show signs of wear after about 15 years.  

My suggestion is to have a home inspector check any home (no matter what the age) if you have concerns.  I think that this is probably the most important thing to do when buying a home!

In buying a home today, the most notable difference between new and older is the energy efficiency of the older home.  This does not mean that it cannot be retro-fitted for higher energy efficiency.  You have to do a little homework to figure out what to do, but materials today are providing better insulation and cleaner environments.  Some products help conserve water and power.  Again, a visit to a builder supply store can help you to understand what you might like to look for in a home and then consider what the costs would be to make those changes in an older home.

You commented that prices on resales are really good right now.  Depending upon the area, this can also be the case for a new home that is standing inventory.  Builders don't like to have homes completed that are sitting on the market.  They are more apt to 'cut a deal' for one of these homes than to pay carrying costs for too long.  Get creative, work with a Buyer's agent and make offers!

Best wishes,
Jessica Bryan