When buying a home, which is a better value? An older home or one more recently built?

When the question of whether an older home or a newer one had more value came across my screen...I froze like a deer in headlights. Fortunately a Buick did not mow me down and I had an opportunity to calm down and reflect on the question.

I will begin by stating the reason that I froze is because while it seems simple, this is actually a very complicated question.  Rather than give a single convoluted answer I am going to break down the parts of the question, and help the reader understand how to determine which home has more value when they are evaluation any potential home purchase.

The first of these areas has to be our understanding of  home value. My assumption has to be that the person asking the question is referring to the homes market value. In which case the easiest way to determine which has more value is to simply ask your trusted Realtor to run a comparative market analysis on each home to find their respective current values and then research the pricing trend for each to see whether each property is gaining or losing market value on a timeline.

But when considering the valuation of a home, I think it is just as important to assess that value against the current and future needs of the buyer. For instance, if the home is being purchased by a young couple is there room for them to grow a family in it? Or will they have to buy another home and pay to move in just a couple of years as their family grows? If it is a middle aged person have we found a single story home, or did they buy a two story home that will need to be replaced in the coming years because of back and knee problems?

There are literally thousands of circumstances that can reduce the value of any particular home to a particular buyer, not just emotionally, but financially as well. Buying and selling a home every couple of years can eat at your investment with all the costs of moving, financing and marketing a home. So generally we want to make sure we consider our lifestyle, our health and our future needs when we buy a home…so we can ensure we protect our investment.

The next thing we want to consider when determining which home has more value is the one real estate agents have been screaming for years. Location, location, location. Is the neighborhood on an upswing or a downtrend? How is the school district? Is it close to where you will work? Are there parks and other entertainment venues nearby? Is there an HOA or not? All of these things can affect both the market value and the homes value to the home buyer in coming years.

The area that most affect the answers the title question, is what condition the home is in. If the house was built last week, but is a dump…it obviously is not going to be as much of a value for the home buyer. Likewise, even if the older home was much better constructed, a lack of proper maintenance would deteriorate the home so that it would not be as valuable as even a poorly built modern home.

These are just a few of the areas to consider when determining which home to buy and whether a home as or will hold value. So how do you move forward? Easy. You work with the kind of agent that asks you the types of questions so that they can help you find the home that best suits your needs, and helps you protect your investment.

If you want that kind of service call Robb at 317-657-8059 or email robb@yourrealtylink.com to set up a buyers consultation appointment.

If you are thinking about selling your home, or if you would just like to know what your home may bring on the open market; fill out the form below and request a CMA on your home.
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About Robb

A husband, Dad to 5, and Grandpa to 9. US Navy Vet. 18 Year Postal Employee turned full time Realtor. I enjoy a wide variety of things, but you will find that here I mostly write about Indianapolis, government/politics, recent news, and whatever book I am reading or have just finished at the moment.
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