New Year Could Mean New Market for Old Homes
Many home buyers are surprised when they hit the market looking for a new home and find that many of them aren’t so new themselves. Perplexing to some but if you have the inside scoop this is not so surprising. In a recent survey by RealtyTrac it was shown that around 70% of single family homes newly listed for sale were built before 1990. This percentage may be slightly off here in Idaho’s Treasure Valley as the past year has shown steady population growth and a number of great home builders still building in the valley.
Even so, it is very likely that the homes you may be looking at will not necessarily be built-to-suit or new construction in many cases. Experts are saying this is due to the “real estate hangover” from the market turn down several years back when home building practically came to a halt. Even with the promising comeback new construction is still down an average of 40% below long term norms.
Is this all bad though?
The average pre-1990 home sold for 9% less than a newer one in the same market – so good news for those looking to buy, but no so much for sellers.
But once again it all comes down to location, location, location, as even older homes can see a boost in value depending on their locale. Custom features not seen in newer homes, like sweeping staircases, crown molding, and others can also help to balance out the loss in market trends as well.
If you are in the market for an older home, here are a few guidelines to follow:
Do the walk through with your home inspector.
This is the best opportunity to find any potential problem areas and to get the insight of a professional on their severity.
Budget for repairs and upgrades.
Consider the difference between installing new more energy efficient systems versus the cost of maintaining an older one. Many such upgrades like solar water heating can pay for themselves over time easily.
Know when to call it quits.
Everyone likes a challenge, but knowing when a home is just too far beyond your time,energy, or budget it a must for saving heart ache down the road. Think long term before making a decision in the now.
Not sure where to even start?
Have dreams of moving up or getting into classic home rehab? Working with a qualified REALTOR is always the first best step, whether you are buying or selling. Paul Heim of the New View Real Estate Team has the experience and know-how you’ll need no matter what kind of real estate opportunities present themselves.