The Pros and Cons of Buying an Older Home
While the thought of buying a newly built home is appealing, it’s a simple fact that the majority of homes sold in the U.S. and Canada are “existing” or “older” homes. In fact, statistics show that around 95% of homes sold in the United States each year are existing home sales. So unless you’re part of that small 5% minority, you’re likely buying an older home.
For many buyers, purchasing an existing home can be a smooth and rewarding experience, especially if the home has been well maintained both inside and out. Homes are built to last, but without regular upkeep, it’s surprising how quickly things can start to go wrong. More on that in a moment.
Key Considerations When Buying an Older Home
Lot Size
Many of the new subdivisions and communities being built today often try to maximize space by cramming as many homes as possible into a small area. While the homes themselves may be a good size, this usually means the lot is tiny or even non-existent. However, this isn’t typically the case with older homes in established neighborhoods, where lots tend to be more generously proportioned, giving you more outdoor space and privacy.
Established Neighborhood
Older homes are usually found in well-established neighborhoods. This means you’ll benefit from being close to schools, grocery stores, public transit, recreational facilities, and all the services you expect—such as mail delivery, garbage collection, and more.
The Drawbacks of Older Homes
While all of this sounds great, older homes do come with their drawbacks. As mentioned, if the home has been well maintained, you’re less likely to encounter issues. However, no one can guarantee this, and there are more factors to consider with older homes than with new builds. This is why it’s even more important to have a professional home inspection before buying. Some potential issues could include the following:
The Structure
Is the home structurally sound? You should get a good idea of this just by looking around. Large cracks in corners could indicate that the building has shifted or settled. If the foundation has cracks or holes, this may be harder to spot unless you have an unfinished basement to inspect.
Damp Issues
If there’s damage to the foundation, there could be a damp problem. Water may have been leaking into the walls over the years, which can lead to mold and health issues, not to mention structural damage.
Dampness can also arise from the exterior—if eavestroughs or downspouts are broken, rainwater might be flowing back into the house instead of being diverted away.
Windows and Doors
If the windows and doors have been recently replaced, that’s great! But if they haven’t, older homes are notorious for having drafty windows and doors that let in the cold, resulting in higher heating costs. You’ll need to factor in the cost of replacing these if you choose to buy the house, or consider whether you’re willing to live with the added heating expenses.
The Roof
Roofs don’t last forever. Unless the shingles were replaced in the last few years, you’ll need to inspect them to see how much life they have left. And, if the roof has been leaking for a while, you’ll want to check the roof structure itself. The plywood beneath the shingles could be rotting and may need replacing.
Electrical and Plumbing
In older homes, the electrical and plumbing systems may not meet today’s safety standards. If you have an old fuse box, check whether it’s overloaded or if there’s space to add extra circuits. What’s the system’s rating?
As for plumbing, while older pipes may still be in fine condition, problems can arise when previous owners have made alterations. Ideally, you want to buy an older home where both the electrical and plumbing systems have been updated.
Hot water tanks fall under plumbing as well. While not typically expensive to replace, the damage caused by a leaking tank could be costly.
Furnace
Replacing a furnace can be quite expensive. Although furnaces are designed to last a long time, if the one in the home you’re considering is more than three decades old, it’s worth considering the possibility of needing a replacement soon. A furnace that has been regularly serviced will likely last longer.
Asbestos
Asbestos is a concern when buying an older home. While it isn’t a daily problem, it becomes an issue if you plan on doing any renovations. In the U.S., asbestos products were banned in 1978, and in Canada in 1979. However, some builders continued using pre-ban asbestos products well into the 1990s, so it’s crucial to get the house checked for any materials that may contain asbestos.
Learn more about asbestos risks.
