Red Deer Real Estate » Mike Wiseman

The longer I am in real estate, the more this topic comes up with buyers and sellers. It really is quite the topic of discussion for people when looking to make a move in real estate.

I had written a blog post a while back on new vs. old and the potential return on investment when thinking of making a purchase, and the other day while I was out showing houses the topic came up, yet again.

I am not going to get into a discussion about return on investment again, but it was interesting to hear some feedback on why people buy new, why people buy old, and why they make a switch. There seem to be recurring themes for each side, and I thought I would go over the main points quickly. Who knows, it may help someone down the line when they are looking to make a move and can’t decide which way to go.

New:

People who prefer new typically buy because they won’t have to worry about maintenance due to age (whether its structural, mechanical, or cosmetic). They want something they can put their personal touch on (build to suit), and then just move in and enjoy. Finishing the yard (sod / fence) is a small price to pay for living in new. A little sweat equity is a great way to add value to a new built home (for example, finishing the basement or building a detached garage – just make sure its done well!).

Old:

People focusing on old love character. They love outside space, and aren’t typically concerned with inside space (prefer a yard that is large to enjoy, yet private with mature trees). They love the uniqueness of the era the house was built, and they believe that you can’t find matching quality in a new built (solid fir joists / original hardwood / textured ceillings, etc.). They find ways to add value back in the home by keeping the character but giving it a cosmetic facelift. With a bit of sweat equity you can build value back into these homes by bringing them up to current standards (with respect to style, decor and current trends).

The Switch:

So why change from new to old? Typically privacy leads the switch. With a new build, you don’t have the luxury of a mature yard with privacy in the form of trees or shrubbery separating you from your neighbors. Add to that a larger exterior space, and this is typically why you see this switch.

How about old to new? Maintenance and inefficiency is normally the kicker here. Owners become tired of the day to day upgrading and maintenance involved with an older home. Although they do give up a bit of privacy, sometimes this is a small price to pay for the knowledge that you won’t soon be replacing the shingles or that hot water tank that just decided to stop working.

No matter which way you cut it, there is value in both purchases. There are a lot of factors to think of when buying or selling a home. If you want someone to chat with about it, I am all ears

What are your thoughts? What adds value for you? What detracts? I would love to hear what you have to say, please feel free to leave a comment below.

MW