You're looking at new homes in Sequim or in Port Angeles, and you're trying to decide whether you should buy an existing home or build a new home. That's no small decision.  The answers you get are only as good as the questions, so what questions are you asking?  Here are some of the more common questions.


1.  I was told I could buy an existing home for less than it would cost to build a new home.  Is that true?

This is a common belief among many people.  While it could be true if you purchase an older home in a less expensive neighborhood, there are some very important things to consider here. 

Building a new home may cost more up front, but you don’t have to make necessary repairs to fix things that usually have to be done in the first five to seven years of buying an existing home.  A new roof, new furnace, new heat pump, new carpets . . . these are all expensive items that most home buyers want or need to replace in the early years of owning an existing home.  These costs could amount to tens of thousands of dollars, so they shouldn't be quickly dismissed.  Not only is this a cost factor, but it is a stress factor.  Suddenly having a major household expense when you did not budget for it is very stressful.

Another cost factor is what features and amenities are included.  To accurately compare an older home and a new home, you would want to have the exact same features, design, square footage, appliances, countertops, carpet, and so on.  Let's face it, we probably won't have such a ideal comparison.  There are other considerations, too. 

2.  How would you compare features and amenities for building verses buying an existing home?

Building a new home allows you to chose (and pay for) exactly what you want. You are not paying for things you don't want, things that were someone else’s dreams. You may not need that wet bar in the basement or the trophy room.  Why pay for them? 

Buying an existing home also means you almost always get architecture you would not have chosen.  Even if you find the home that most closely meets your idea of a good floor plan, the master bedroom may be too small, or too large, the children's bedrooms may be less than ideal for your own children, the hallway may be slightly too narrow, and the living room may not have enough natural light. 

Building a new home with your chosen design means you get what you want and you pay only for what you get.  If you love granite counter tops, you can have them.  If you want a walk-in closet in the master bedroom, you include it.  Not only that, if you want shelf lights in your walk-in closet, you decide what kind.  You cannot do that if you buy an existing home. 

New homes typically come with modern conveniences that older homes do not have.  For example, more outlets, cable and satellite TV wiring, high speed Internet, conveniently placed phone jacks, maybe a home theater sound system, and better placement for lighting fixtures. 

Wouldn't it be really great to be able to select your own designs for your Kitchen, Cabinets, Appliances, Windows, Doors, and Fixtures?

3.  Is there any maintenance cost savings with a new home compared to an older home?

There usually are.  First, in a new home the building from the foundation to the roof is new and has a much longer life span.  Second, technology has made colossal improvements in heating and cooling systems, electrical systems, and appliances.  New window and door designs are much more efficient than the old designs, not only for heating and cooling purposes, but also to assist in good air circulation.  High quality new systems are going to be more energy efficient and require less maintenance in the years ahead.  New homes built today cost about half as much to heat as homes built before 1990.  All of this saves you monthly costs of operating your home, and it saves you larger repair and replacements costs in the future.  New homes are clearly much "greener" than the homes of yesteryear, and you can design a green home that is so much more friendly to the environment, and healthier for you, too. 

Of course, you could end up with a major expense with an older home that you had not counted on.  For example, if you have a very rainy season a year after you purchased your home, and you discover standing water in the crawl space.  That leads to an inspection, which discovers serious moisture and rotting timbers under your older home.  You are looking at what could be a huge expense to repair, assuming the standing water and excessive moisture can be eliminated (and sometimes it cannot) and the timbers replaced. 

Not to dwell on bad things, but you should be aware that sometimes septic systems fail in older homes, sometimes private wells need to be re-drilled or the pump replaced or new water lines installed.  Sometimes there are drainage problems on the property around the house.  Maybe a curtain drain should have been installed, and it was not.  People often add a room to their house or convert the garage into a bedroom, but did they get a building permit?  If they did not, you have illegal improvements, and it will cost some pretty money to make it right with the building department.  If the addition cannot comply with the building code, you may have to tear the structure down.  Ouch!

4.  Is there is a difference in safety between older homes and a new home?

There can be.  A new home that is well designed will have good heating and cooling systems with filtration that keeps dangerous contaminants from recirculating throughout your home.  One of the great dangers of some homes designed and built many years ago included excessive moisture and the build up of health endangering mold, mildew, and other bacteria.  You may have read some of the newspaper stories of children growing sicker and sicker in their own homes because of mold.  Mold and mildew can accumulate in the walls, around window sills, and in carpets where mold and mildew can become concentrated.  When children roll around on the carpet, these bacteria are stirred up and can be inhaled without any signs of danger. 

New homes that are designed with your health in mind will include good filtration systems and good 24/7 circulation of the air you breath.  How much is your health worth to you?  This does not mean older homes are automatically unsafe.  Not at all.  Many older homes are quite safe.  It does mean that a new home pays attention to these details.  Problems with an older home are very hard to detect, and a standard home inspection may not reveal health hazards of this kind.  [Read About Asbestos]

One last thought on safety.  Some older homes have substandard stairs, which means the steps could be narrower than the standards used today.  For anyone this could mean tripping and falling, but especially for older people who might have hip or knee issues, it could present a significant hazard.  A new home is built to meet the highest standards of the International Building Code and a good builder is going to pay close attention to the design best suited for you.

5.  What about home warranties?  Can't I get one with an older home, too?

Yes, you can.  But there is a difference.  A new home has a warranty by the builder for one year, and the builder will come back and repair or fix any problems covered by the warranty.  The best builders go beyond the strict coverage of the warranty agreement to take care of their clients.  A builder's warranty typically covers structural components of the home, and of course, you'll have manufacturer warranties on all the new appliances. 

An existing home does not have these kinds of warranties.  There are private homeowner warranty insurance plans you can purchase when you buy an older home, but you will pay a premium for this, and it has strict limitations on the kinds of things that it covers. 

Apart from trying to get a problem fixed when it is discovered, a new home has a longer life, a higher appraisal value, and a better resale value than older homes. 

If you are going to have a new home or a custom home built in Sequim or in Port Angeles, may I suggest you do some due diligence to identify and hire the best builder for you?

Read Rick Anderson's Six Part Blog series on Selecting a Builder.  These are tips from an experienced home builder who tells it like it is--the truth.

The Series: