When buying real estate, there are many factors to consider. After determining your budget, wants/needs, and general location, another important decision is whether to purchase new construction or an older home. Below, we outline some of the pros and cons of each option and things to consider when buying a home.
New Construction
Homes that are being built or perhaps just completed offer an opportunity to start with a clean slate. These homes are built to the most current County building standards, ensuring modern systems and infrastructure, and may be able to accommodate some customization during the design process. However, there are a few potential downsides to keep in mind.
Pros
- Everything will be up to date. Building codes evolve over time, which can be especially noticeable in historic cities such as Durango, CO. Here, homes that date back to the early 1900s may have been renovated but could still contain much of the original structure, including old electrical wiring, plumbing, lead paint, and asbestos. These elements can be hazardous and expensive to address. Since new homes have not yet been lived in, they are usually in pristine condition and ready for their first owners.
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No updates in the near future. Common home features such as roofs, HVAC systems, flooring, and windows generally need replacing every 20-30 years or so. With a brand new home, you don’t have to think about or save for these updates in the near future. This may also include design needs and wants such as a certain color/style of fixtures, wall colors, and lighting.
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Energy efficiency. As technology advances, home components such as water heaters, air conditioning units, and large appliances have become more energy efficient. These newer and more efficient items offer the benefits of lower utility costs and a reduced carbon footprint.
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Smart home technology. Many new construction homes include smart home features such as thermostats, drip systems for landscaping, and keyless entry. While not essential, these features can add convenience and allow you to regulate the home from a distance.
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Home builder warranties. The builder will typically offer a Builder’s Warranty for 1-2 years, which often provides more reliable fixes by the builder or their subcontractors who are already familiar with the home.
Cons
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Can be more expensive. Because you’re purchasing a brand-new product, the price is generally higher than a similar home built five to ten years ago, even if the home has been recently remodeled or updated. It’s also important to consider costs such as window coverings and landscaping which are not typically included in the new build price.
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Less negotiating. Builders usually set prices based on the cost of construction at that time. While negotiating may be possible, it is less common to see significant price reductions in price compared to resale homes.
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Fewer options. New homes are generally harder to come by than preexisting ones. In Durango, land, good builders, and permits are harder to come by and take time to obtain. As a result, it may take longer for the right spec home to hit the market, or you may consider a custom home, which requires purchasing land, installing utilities, and waiting for the design, permitting, and construction process.
Older Homes
Durango was founded in 1880 so many older homes here exude a historic charm. This can be both an advantage and a challenge, especially if the home needs significant updating.
Pros
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Usually less expensive. Older homes are typically less expensive than a brand new home offering the same level of features and finishes. Many older homes have been or can be remodeled, offering the look and feel of a new home.
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Little to no waiting period. Since the home already exists, there is usually no waiting period to move in after closing. Of course, if there’s a rent back period or a remodel in the works, this may cause delays; but generally the home is ready to be yours.
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Location. Especially in Durango where the city limits only span 2.3 square miles, land that’s truly “in-town” is hard to come by. Therefore, buying an existing home almost always ensures a closer location to downtown.
Cons
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Non-standard layouts. Over the years, living preferences have evolved - many older homes may still have smaller rooms and closets, awkward/limiting floorplans, low ceilings, and insufficient electrical outlets or lights. It’s also common to find a home with three bedrooms and just one bathroom, while primary ensuites and a second bathroom to serve the other bedrooms are now more typical and desirable.
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Repairs. Whether it’s new carpet, updating appliances, plumbing, or other infrastructure, resale homes often need some repairs or upgrades in the near term. We recommend considering these costs while under contract to purchase the home so you can financially plan for these upcoming costs. We can help connect you with the right contractors to gather this valuable information.
Whether you decide on a new or older home, there will always be seasonal maintenance and responsibilities associated with homeownership. Please let The Durango Team at The Wells Group know how we can help with buying your dream home.
