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Trulia Chica…, Other/Just Looking in Chicago, IL

Does an older home have more value than a new one?

Asked by Trulia Chicago, Chicago, IL Tue Mar 19, 2013

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Chris Brown’s answer
NO, a resounding no. Good job Joseph S. for telling it like it is. I think the question assumes that "all else is equal". Probably up to a 20% difference in my opinion. I buy older homes for the architectural charm, woodwork, and quiteness. After about 20 years, the prices may equalize as the roof and all major appliances need replacement. One of the bigger problems with older homes is the damper basements leading to less healthy living in these generally poorly remodeled spaces. IMHO. chris brown, Inspection Chicago inc.
3 votes Thank Flag Link Tue Mar 19, 2013
BEST ANSWER
Dear Trulia Chicago.

The question you asked lead me to think about the various factors that can affect a buyer’s buying decision as well as the possible differences between older homes and condominiums. While Trulia Chicago chooses the word “home” I feel condominiums should be included as well.

The age of the home or condominium can sometimes influence a buyer’s decision as well. It is a known fact many people like to be the first to live in a new home or condominium.

Newer homes and condominiums tend to be larger and surrounded by small plants and short trees while older homes and condominiums are often smaller complete with mature landscaping. On the condominium side, new condominiums depending on location have gone to kitchen/living/dinning room combinations the “living space” in one grand room. Older home may have especially small bathrooms and closets.

The newer the home, the better the closets are. This is true of most homes and a good percentage of newer condominiums.

It used to be that new homes cost more than older homes, but that is not true across the board. As land costs increased, the size of new home lots have shrunk. Builders are putting larger homes on smaller lots reducing the amount of yard space. And with condominium buildings space that would have been used for backyard space is now used for parking.

Another reason today's construction is cheaper is because it's less expensive to use 2 x 4 pine framing or engineered wood and to use drywall instead of plaster. Buyers who look at inner-city homes in desirable neighborhoods will find, on average, larger lot sizes, and the homes will cost more than entry-level new homes being developed in new subdivisions outside the city.

Here are some advantages and disadvantages to consider when determining whether you should buy a new home/condominium or an older home/condominium. Not all of the items hold true 100% of the time but for the most part a buyer can get a better understanding of what the trade offs could be. Value is often determined by emotional factors and ultimately the buyer will decide based on some of the factors below:

Because of character limitations here; I have created a blog article for home buyers to read: http://www.trulia.com/blog/ManuelBrown/2013/03/does_an_older…
1 vote Thank Flag Link Sun Mar 24, 2013
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Flag Sat Mar 30, 2013
In most cases, if the two properties are identical in size, shape and location - the older one will be worth less. But you have to compare apples to apples. A brand new 1,500 SF manufactured home will be worth less than a downtown 1,500 brownstone in good condition.

There are some types of properties that are older and worth much more than newer homes. These can include historical homes or homes that are on very valuable property (i.e. once residential area now rezoned to commercial or an old farmhouse on prime developmental property). It just all depends on the properties.
1 vote Thank Flag Link Wed Mar 20, 2013
Not a question easily answered.....
location, size of home, lot size, views, all will influence which one has more value....
Each home has its own value, and then there is the value it represents to the individual buyer...
If a buyer prefers new construction, that is one thing, if on the other hand the buyer prefers an older
well maintained and upgraded home with the old meeting the new, a whole other story and often the
location of a home or the land surrounding the home, may make a huge difference....

It seems a simple question, except that the answer may be long and complicated.....
Good Luck to you

Sincerely yours,
Edith YourRealtor4Life & Chicago, North Shore & Northern Illinois Expert
Working always in the very BEST interest of her clients, Buyers, Sellers and
Investors alike....And always with a SMILE :)

Covering for @Properties Chicago & suburbs, and with her trusted Partner
Agents US & world wide properties. French, German, some Spanish &more EdithSellsHomes@atproperties.com or EdithSellsHomes@gmail.com
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1 vote Thank Flag Link Tue Mar 19, 2013
It all depends on if the "older" home has historic qualities that "newer" homes do not. Older brick homes w/ stain glass windows and hardwood floors certainly attract more attention than vinyl siding and flooring.
0 votes Thank Flag Link Sun Mar 31, 2013
You should look at both homes for its individual characteristics. Generally, older homes may be in more established neighborhoods, offer more ambiance, and have lower property tax rates. New homes may be in new locality and it takes time to have a good neighborhood.
But this doesn't mean that older homes have more value than new ones.
0 votes Thank Flag Link Sat Mar 30, 2013
Not necessarily. When getting ready to list a new home or an old home, the fair market value should be determined on a case by case basis. By providing you with a Comparative Market Analysis, which takes into consideration comparable property data, current market conditions and activity, competition, mortgage conditions and interest rates, location and finally, the appearance and condition of the property, Tricap Preferred ensures a realistic suggested initial list price – extremely crucial when trying to maximize your financial return and minimize the amount of time your property is on the market.
0 votes Thank Flag Link Thu Mar 28, 2013
Real value takes on many faces....in many cases the real value of a home doesn't come from the house itself but on the property on which it stands.

So can an older home have greater value than a newer one? ABSOLUTELY!

Bill
0 votes Thank Flag Link Thu Mar 28, 2013
Older homes, might have more value than new ones, mainly because they have more character and charm than new homes.Older homes are also in more established neighborhoods with good schools and other amenities that make them more attractive.
Besides builders in past decades created homes way differently than they do now, and you can see that in the quality and the construction of older homes.
Unfortunately, though, that character and charm also comes with a few difficulties you wouldn’t have to face with a brand new home.
when you’re thinking of putting in an offer on an older home, here are the top five things you’ve got to address:

http://www.realtypin.com/news/story/1080-the-top-5-tips-for-…
Web Reference: http://www.realtypin.com
0 votes Thank Flag Link Thu Mar 28, 2013
Good Morning
Thats an impossible question to answer correctly. The correct answer is dictated by the sold and inventory of homes for sale in the mareket/area you intend to purchase.
I encourage people purchasing real estate to "learn their market" and I offer a step by step proven process that will assure the that confidence.
Establish geographical area, a price range and start with a comprehensive list of every property for sale. Carefully map them all out and drive by every property. Buyers find this simple and rewarding. They are able to move confidently on the best buys and through the negotiations. Most importantly they are happy home owners in there new home knowing they did the best that could be accomplished with their resources.
Thanks for a very good question, Stephen Webber
0 votes Thank Flag Link Wed Mar 27, 2013
If we are talking about Chicago, and a restored Victorian, or even an impeccably maintained brick two flat versus the majority of buildings that went up in the last decade, then I'd have to put more value on the older home. In certain situations. But in another case, a 1950's raised ranch will have less value than a similar size (square footage wise) new construction home built by a reputable builder.

This is obviously a ridiculous question as the variables are more than any forum has room for.

Does an older dog have more value than a new one?

Depends.
0 votes Thank Flag Link Fri Mar 22, 2013
It depends on a llt of variables. Talk to a Realtor in that area and they can better answer that question. Older homes can be a good deal or a money pit as they will surely need more repair and manitenance. they will also be less energy efficient. That said they can have a lot of appeal and conveinience. Start by talking to a Realtor.
0 votes Thank Flag Link Thu Mar 21, 2013
It depends heavily on the neighborhood and type of house
0 votes Thank Flag Link Thu Mar 21, 2013
It depends heavily on the neighborhood, Some older homes in historic districts that are keep up nice and have been remodeled on the inside might go for more than a new home, but an equally older home in a rough part of town will likely go for much less even if it has been updated like the one in the historic district. The old cliche of Location, Location, Location still holds true today for the most part.
0 votes Thank Flag Link Wed Mar 20, 2013
Not usually. Home buyers like newer homes and the latest amenities in them. Though some historic homes may appeal to a certain type of home buyers.
0 votes Thank Flag Link Wed Mar 20, 2013
Many assume that new or newer construction is worth more than an older home (all other things being equal). However, many of the newer homes built in the last 20 years have inferior quality building materials. For example, many who purchased a new construction home built with cinder blocks will tell you that they regret their decision because water penetrated the cinder blocks. Bottom line; do some research about the builder and the materials used in the construction
0 votes Thank Flag Link Wed Mar 20, 2013
All being the same in each, no, it is not. But, that is seldom if ever, the case.
A more reasonable answer would be "give me more info and I can give you a specific answer."
And, as always, the buyers, not us, determine values.
0 votes Thank Flag Link Wed Mar 20, 2013
Right now you can still buy older homes for much less than replacement value, but every address will have to be looked at independently for a value comparison.

Erik Sachs
RpV Realty and Development
Cell 773/368-5515
Email esachs@rpvinc.com
0 votes Thank Flag Link Tue Mar 19, 2013
what are the 2 homes you are comparing?
0 votes Thank Flag Link Tue Mar 19, 2013
That has little to do with value, but the condition/updates has value as well as lots of other factors.
0 votes Thank Flag Link Tue Mar 19, 2013
An older Frank Lloyd Wright designed home occupied by Jesse Jackson Jr. may have a great deal more value than the brand new D.R. Horton McMansion located next door.
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There is just so much we do not know.
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Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group, Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us

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0 votes Thank Flag Link Tue Mar 19, 2013
Hard to say since there are so many things to consider like area, condition, size, etc.
0 votes Thank Flag Link Tue Mar 19, 2013
depends on condition, construction, neighborhood etc. in some cases yes in others no.
0 votes Thank Flag Link Tue Mar 19, 2013
It all depends on location, condition, etc. Its impossible to say.
0 votes Thank Flag Link Tue Mar 19, 2013
no..if they are on the same lot and same size something newer is worth more most of the time..come into my office to discuss
0 votes Thank Flag Link Tue Mar 19, 2013
It depends on the condition and location of the older home in relation to the newer one.
0 votes Thank Flag Link Tue Mar 19, 2013
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