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Archives for April 2019

Old vs New Houses – Which is a Better Investment?

comparing old vs new houses

The question is not as easy to answer as it used to be. Once upon a time, newer homes were more expensive than older homes and were thought to be of superior quality. With the way times have changed, that’s not always true, but it’s not always wrong either.

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Advantages to Buying Older Homes
Advantages to Buying Newer Homes
Disadvantages to Buying Older Homes
Disadvantages to Buying Newer Homes
Other Factors That Impact Old vs New Homes
It’s Time to Buy Your Home

Neighborhoods change as do the people living in them, and entry-level homes can’t compete with some of what the older homes can offer. It’s an interesting conundrum as you compare old vs new homes to decide what is the best path forward for your situation.

Advantages to Buying Older Homes

old victorian themed house

Depending on how old the home is that you’re looking for, it is entirely possible that the older home has stood strong for a century or longer. Even if it has been there for a few decades, you know that it has stood the test of time, so you can feel good about purchasing a home built by experienced craftsman from the days of yore.

Larger Lots

Older homes also tend to have larger lots. That translates to larger yards perfect for kids to play in or have families spend time outside. It also means that the home likely has a garage or a neighboring alleyway. The extra space between homes is also nice because no one wants to feel like their neighbor is looking into their home from the kitchen window.

More Character

Homes that have been around a while also tend to have more character than their more contemporary counterparts. Imagine a Victorian home, and you can picture the carved details in the walls, the staircase, and all the other little things that meant something when they were originally done.

Advantages to Buying Newer Homes

New homes are new shiny things that attract your eyes, but with good reason. There is a level of comfort knowing that you’re the only person that has ever been inside that home. You know every nook and cranny, why a door got replaced, or that time a wall got repainted because your toddler got a hold of a Sharpie. You know the entire history.

a new residential property in the market

Built-in Warranties

A new home also has a bunch of different warranties in place. You’ve got a warranty for the A/C unit, the heater, the roof, the plumbing, the walls, the structure – everything. Builder warranties are excellent as you find those smaller and sometimes more significant issues that pop up when you own a brand new home. Since it’s all covered under warranty, you don’t have to pay to fix any of those things.

The Most Efficient

New homes are also built to be efficient, which is a huge step forward from older homes. Some even have solar panels incorporated into their design to encourage a lower energy use. Everything is insulated, and windows are often dual-pane to keep your home warm in winter and cool in summer.

Code Compliance

Builders follow the most updated codes to keep your home compliant. That means that you won’t need to do any updates on your own or hire someone to make them happen. Your new home comes to you ready to go, lock, stock, and barrel.

Disadvantages to Buying Older Homes

Older home

As wonderful as older homes can be, there are some definite drawbacks to purchasing one of them. Many a homeowner has complained that it feels like there is always something else to replace or repair. The ground shifts over time which can result in foundation repairs or sloping floors that weren’t there fifty years ago.

Lack of Code Compliance

Other changes that older homes have to contend with include wiring and plumbing. Since the homes were first built, there’s a good chance that there have been updates to the electrical or plumbing code. To get an older home up to code, that means that you may have extensive replacements to make.

Smaller Storage and Living Spaces

Remember, too, that these homes were built in a different time. Homes built in the early 1900s were designed with a different philosophy in mind. It was a time when people didn’t have quite as much stuff to store which means fewer closets, spaces for storage, and possibly not even a garage. Another interesting change since the times these homes were built is in relation to the size of a family. Large families were the norm back in the day, and still, these houses that are older are generally smaller than a modern home. They tend to have fewer rooms, so it may or may not work for your family’s arrangement.

Disadvantages to Buying Newer Homes

Newer homes tend to be called “cookie-cut” homes meaning that they look like every other home in the neighborhood. There is no customization and very little character. For first-time home-buyers, that may not necessarily be a deal breaker, though, because these homes are easier to build which means they also cost less.

By the same token, these homes will have a similar floor plan to your neighbor. If that matters to you, you’ll have to come to terms with the fact that someone else has a home nearly identical to yours in every way.

a new house for sale

Trees Take Time

Landscapi​​ng also takes a hit on newer homes. Because the developments are new, the time has not been there to allow for vegetation to take root and grow. Older neighborhoods have beautiful trees and lush vegetation that has happened naturally over time. Newer homes need a homeowner that can afford to do that, and unfortunately, that’s not usually the case.

Far From City Life

If you want to live near the hustle and bustle of a larger metro area, then you’ll be disappointed in the location of a newer home. They are not typically built somewhere near a busy downtown scene. Instead, they’re usually a good distance from anything like that. When you consider the proximity of a bustling downtown area to old vs new, older homes win in this category.

Other Factors That Impact Old vs New Homes

comparison between an old vs new house

Upfront costs can also make a difference in what you choose to buy. Older, or established, homes may cost less in your area than a shiny, new home. Newer homes may be less expensive depending on the area you’re looking at, so you need to compare the cost to what you can afford, too.

Home Histories

Also, consider the track record for the older home. You can see its history and how much it has appreciated over the years. That home could be a solid investment that will pay for itself in the years ahead. Newer homes don’t have that kind of history, and it’s far more of a risk in terms of investment. You have no idea if the property value is going to shoot up or go down as more people move to the area. It’s a gamble if investment value is a priority in your search.

All the Latest Amenities

If you want the newer amenities inside of an older home, you’ll need to be ready to take that challenge on, too. There’s nothing that says you can’t hire someone to renovate an older home and bring in the latest innovations to make your dream home a reality.

It’s Time to Buy Your Home

Buying a home is a fun, exciting time that is also stressful and chaotic. Things happen that you don’t plan for like a rescheduled home inspection, closing dates that are pushed back, or finding mold in a wall that you didn’t know about before you signed the dotted line. All of these things can be mitigated to some degree depending on the type of home you buy. When it comes to old vs new, you need to go in expecting there to be some problems in older homes that you’ll be willing to fix. If you don’t want to deal with those potential issues, go for a newer home instead. When all is said and done, you’re going to love your new home as long as you prepare yourself with realistic expectations. By weighing the advantages and disadvantages of each one, you’ll go in with open eyes, and you’ll be ready for whatever is thrown your way.

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Filed Under: Financing Property, Property Investors Resources

Real Estate Value: 8 Ways to Improve

a residential property that needs to improve its real estate value

As you make choices to add upgrades or changes to your home, there is a fine line between additions that improve your real estate value and other things that are little more than a personal investment that won’t do much to give you any real returns.

Knowing the difference between adding real value to your home as opposed to adding perceived value makes a huge impact on where you decide to make your changes. 

Below, you’re going to find a list of suggestions that can work either way depending on your personal preference.

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8 Different Ways to Improve Your Home Value
Raising the Real Estate Value of Your Home

8 Different Ways to Improve Your Home Value

In making these decisions, you need to start by looking around at the market value of homes in your area as well as the value of your own home. You may also want practical ideas that will improve your home value quickly up front as well as for the long-term.

1. The Greatest ROI in Real Estate Value

According to Forbes, “millennial homeowners are now twice as likely as baby boomers to tackle kitchen and bathroom remodels.” That is a significant claim to make, but there is a good reason. There is a perception that these updates have the largest impact on home resale value compared to other renovation opportunities.

Kitchens are especially great because you can update with modern appliances that all match, making everything look updated relatively quickly. Cabinets are also easy to update thanks to DIY kits that exist now, and they make your kitchen makeover look complete.

millennial homeowners

Bathrooms are easy to update, too, and can be done inexpensively to update the feel by changing a toilet or upgrading a lighting fixture. These simple changes can give your bathroom a whole different impression to a potential buyer.

2. Curb Appeal is Appealing for a Reason

Everyone likes a pretty house. Healthy lawns, brightly-colored flowers, and well-trimmed trees make your home look aesthetically pleasing. Let’s face it. Buying a home is a very emotional experience, and having a good first impression can make or break a sale.

a house with a modern design

Landscaping with native plants can also improve your real estate value with a quickness. It shows that you’re in tune with your area around you and that you are concerned about improving monthly expenses like watering. Prospective home-buyers will appreciate that.

You don’t want to do anything like add synthetic plants or turf because not only does that decrease your home value, it can also hurt the environment. You may also want to steer clear of putting down a bunch of rocks and gravel in place of a lawn, also known as xeriscaping because unless it’s native, it can cause more damage than improvement.

3. Floor Plan Modifications

Yes, you, too, can change your floor plan and have a significant impact on your home value. If you purchase an older home and you want to open up the space, you might be able to take down a wall to create a more open feel.

Alternatively, if you have a large space that feels empty, you may be able to add a wall and create another room like a bedroom or an office space. Just like that, your four-bedroom house could become a five-bedroom house.

Another thing you can consider is adding outdoor space like a deck or a patio. Living space is a premium commodity, and home buyers will appreciate the possibilities of having space like that. If you have a basement, you can finish it and create yet another living space.

open floor plan interior

4. Clean Your House

One of the biggest turn-offs for prospective home-buyers is to walk into a messy home. If your house is attractive and sparkling clean, it will make a better impression on your buyer. Keeping your house clean does wonderful things for the perceived value of your home.

woman cleaning the kitchen

Cleaning includes keeping up with any problems that pop up as well as decluttering. Dirt gathers in corners, and stuff tends to cluster, too. Clean out your things for your benefit as well because when the time comes, you’ll be ready to show your house.

5. Selling vs. Upgrading

You also need to think about whether or not you’re in the mood to upgrade for yourself or to prepare your home to sell it. Understanding how the value works in upgrading or improving your home makes a difference in deciding what the purpose is behind your decision. If you intend to sell, ask a realtor to give you suggestions like replacing carpets or appliances to increase your home value. Assuming you follow the suggestions made by the realtor, total up the selling price minus the cost of upgrades and modifications to see if your return will be worth the work.

Should you decide that you’re staying and looking for renovating for personal reasons, you have more freedom to work within creating what you want. You will still need to stop and consider your budget to come up with realistic guidelines, but you may be able to take more time to make it happen.

an image that shows house improvement

6. Hiring a Private Home Inspector

Hiring a Private Home Inspector

This is one of those tips to increase your real estate value that you probably haven’t thought about. Think about what certified home inspectors do. They check the house for issues and to certify that the home is in good order.

Have you ever considered getting your house checked up regularly? Having records that show you meticulously had your house checked on a regular basis can do wonders for increasing your home value. It shows prospective buyers that you have kept up with your home for the time that you’ve owned it and can make them feel better about offering a higher price.

7. Larger Renovations

There are some major renovations that can raise your home value, but just how much depends on what needs to be done, your selling price point, and how much you’ll get back in return. As an example, you could update your home’s systems like your central a/c or gas furnaces if you have them.

Another significant upgrade that can add value to your home is the flooring. If you have carpeting, consider replacing it with a more durable flooring material like hardwood laminate or possibly an engineered wood flooring. They look good and can raise your value between three and five percent.

You can also put on a new roof. You don’t have to wait for your roof to need replacing, and having a new roof makes home buyers feel better about not having to deal with that kind of expense in the near future.

man doing house renovations

8. Smart Tech is Not Always an Attractive Upgrade

homeowner managing a smarthome through a tablet

Some smart tech is a good thing, but too much can actually cause a decline in value. It’s a double-edged sword. The key is to find the right smart devices to add. You want them to be temporary where possible because technology evolves so quickly.

Suggestions for additions to a home include things like a Nest thermostat. They look high-tech and give the feel that this home embraces technology. Having additions like the Ring doorbell do the same thing, and they can be changed as technology evolves.

Raising the Real Estate Value of Your Home

There are several different things in play when you’re deciding how to raise the value of your home. Do you want to raise the value to sell it? Are you doing it for yourself? What is your ultimate goal?


You have to be able to answer those questions to figure out what you need to do. It’s one thing to invest in a home that is your “forever” home and another entirely to invest in a home that you know you’re going to sell. Some research and elbow grease could be all you need to increase your home value. Remember, even minor upgrades like faucets, and light fixtures can fix raise your home value. A paint job in a high-traffic area can also improve the overall appeal. Doing some light work on the outside is the extra icing on the proverbial cake to raise your overall real estate value. Do it right, and you’ll be happy with the outcome.

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Filed Under: Property Investors Resources, Tools & Resources

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