Owning your own home is a cherished part of the American Dream. Despite the trendy slogan, there is much more to the purchase of property than location, location, and location. A house must suit the family dwelling within it to truly be a home.
A major decision confronting a prospective homebuyer is whether to buy an older home or one that is truly new. Hamid Arjmand, Vice-President of Sahara Inc. Real Estate Investment Co., says, “On average, older homes start at slightly lower prices — $130,000 — than newer ones which generally start at $150,000. But this is somewhat misleading since newer homes are bigger in suburbia, smaller in town.”
Arjmand elaborates that there are usually more payment options with older residences: “New homes can only be sold cash or on loans. You have to work with the builder and so must have very good credit to buy a new home. With an older home, you may be able to work with the homeowner. Lease options may be available. You also have the potential for trading homes with the older ones.”
Arjmand continues: “In Atlanta the older homes are closer to downtown. Further out you have more new houses because, as prices explode, builders are moving out to areas like northern Gwinnett County and Lawrenceville, and southern counties like Clayton and Henry, where land is more affordable.”
Frank Martin, a broker with The Buyer Connection, says, “You can get up to 10% more home for the same amount of money with an older house. Older homes in the low hundreds are for resale in places like Tucker, the Buford Highway area, and Peachtree Industrial because now it would be pretty expensive to build in those areas. Newer and older homes are pretty well mixed throughout Atlanta. Sandy Springs, Midtown, and Virginia Highlands tend to have more older homes.”
Those who prefer older houses cite their “character” and the materials which went into building them. Publisher Janet Jubilee says, “They used to use solid wood and the wood was of a better grade whereas today they use a lot of plywood and stucco.” Seconding that opinion is E.V. Noel, who says, “I wouldn’t own a new home” because they have “insincere, homogenized ‘architecture’, featuring garages that dominate” and “dry-wall construction — not exactly noise suppressing.” Jim Sokoloff says, “The style of the older home is what sold me almost instantly. If only my sellers knew how much I loved this house. A poorly maintained old house will be a money, time, and aggravation sink. Properly maintained, there’s no reason to expect that a 200 year old house won’t last another 200.” Cynthia Kinsland says her family “fell for the look and feel of an older home. We have a 150+ year old home that has been somewhat unevenly maintained (really well for some things, not so well for others). We like working on things, so the prospect of say, installing a second bath doesn’t faze us.”
Many people prefer older homes for their larger yards which afford more privacy and room for a garden. Janet Jubilee thinks that a good-sized yard is better even if the owner has a busy schedule which prevents him or her from doing the upkeep since “you can pay someone to keep it up which doesn’t cost much.”
Room for a pet to play in is another factor to consider in looking at yard size. Although Atlantan Sara Thorsen has a large, feisty dog, the little yard of her new home isn’t a problem since “I take my dog to parks about three times a week.” However, many people are too busy for this to be workable so, for them and their dogs, a large yard is a must.
Factors favoring new homes include greater closet space, superior insulation, modern features, two-car garages, and their appreciation for resale. Sarah Thorsen sees advantages to both types of housing but is buying a new home. “Old homes are harder to heat,” she believes, “and new homes are often earth-friendly in respect to energy because they are better insulated.”
Robert Irwin comments in his book, Buy Your First Home!, that people want homes with contemporary fixtures, especially in areas like “basins, faucets, ovens and countertops.” This makes newer houses easier — and more profitable — to resell. Marthae@aol.com (she didn’t want her real name used) complains, “My husband and I have an older house, and are trying to sell it. We’ve spent thousands of dollars on upgrades on our current house — new Pella windows for the upstairs, a new roof, etc. It has beautiful hardwood floors on the main floor, and is much bigger (at 2,800 square feet) than most new homes being built in this area. Even so, a lot of people who view the house end up saying, ‘We really wanted something newer.’”
A likely distinction between buyers of old houses and those of new ones is that the former expect some problems in their homes and anticipate doing some repair and renovation. However, as Eric Tyson and Ray Brown write in Home Buying for Dummies, “even if you’re buying a newly constructed, never-been-lived-in home, having it thoroughly inspected is wise.” If you are still in the early stages of considering a home, The Home Buyer’s Inspection Guide by James Madorma orYour Home Inspection Guide by William L Ventolo will, as Ventolo writes, “teach you how to do preliminary inspections on your own.”
However, before making a purchase, there is no substitute for a professional home inspection which can cost between $200-$300. Like most states, Georgia does not license or regulate home inspectors, so your best bet is to find a member of The American Society of Home Inspectors (ASHI) in your area. Their number is (800) 743-2744.
