Purchasing a Fixer Upper vs. Buying a Brand New Home
It’s been said that everything old is new again, but what if you don’t have the time, patience, energy, or finances to wait for that cycle to come back ‘round? Isn’t it better just to start with something new right from the beginning?
When it comes to buying a property, answering that question is trickier than you’d think. In the end, it comes down to your unique needs and preferences. That said, here are some pros and cons to consider when trying to decide if you should buy a new house or an old one:
Benefits of Owning a Fixer Upper
Lower cost – Whether you’re browsing Memphis houses for sale or properties in upstate New York, something you’re sure to find is that, nine out of ten times, the cost of a fixer upper is significantly cheaper than what it would cost to build or buy a newly constructed home. In other words, if saving money is important to you, getting a fixer upper is definitely the way to go.
Easy customization – One of the great things about owning a fixer upper is that, because you’re already planning to perform maintenance and repairs, it’s considerably easier and more affordable to make significant alterations. When home improvement is already on the agenda, building an addition, knocking down some walls, or remodeling the bathroom is more a question of “why not?” rather than “why bother?”
Drawbacks of Owning a Fixer Upper
Expensive repairs – Home improvement projects are great when they exist to heighten your comfort or express your unique sense of style. When they’re unavoidable due to serious structural issues, though, it’s just a pain. Worse, those are exactly the kind of projects that tend to be the priciest. Rewiring the electrical system, patching up bad plumbing, and undoing damage to the foundation are all expensive, slow, and labor-intensive processes.
Slow progress – When you buy a fixer upper, you generally know what you’re getting yourself into. That doesn’t make it any easier to live with, especially when it takes months or even years to upgrade the property to a level where you’re happy and comfortable. Maintenance and repairs take time, which means you’ll be stuck for long stretches with half-finished or even non-functioning amenities.
Benefits of Owning a New Home
Instant gratification – Whether you’re buying a home that was recently constructed by someone else or you’re funding construction yourself, it’s reassuring to know that the day you move in, all the amenities you need or want will likely be available and in working order right from the start. No scheduling a replacement or installation two weeks from now. No waiting for your next paycheck to be able to afford a remodel. Everything is ready and raring to go.
Updated features – It almost goes without saying that the newer a home is, the more up-to-date its features will be. Today’s properties are built with the needs of today’s people in mind. Examples of modern features include everything from energy-efficient appliances to mobile app smart technology. Buying a fixer upper, meanwhile, means having to add all that in yourself, or do without.
Drawbacks Owning a New Home
Higher price – You get what you pay for, as the old saying goes. That’s as true in the housing market as it is anywhere else. That is why, if you want to own a pristine, newly constructed, never-before-lived-in property, you should expect a much higher price tag than what you’d get with an older home. New houses typically cost a full 20% more than other properties of similar size.
Smaller lots – Though not always the case, on average, newer properties tend to be built on smaller lots. That means that, for the price you’re paying, you’re actually getting less land than if you bought an older home of equivalent value. This is because modern construction projects have a lot less space to work with than properties a generation or two prior.
