Older houses get a bad reputation with the potential laundry list of updates and renovations that equate to dollar signs in many homebuyers’ minds. Moving into a new construction home has its appeal, especially with its many bells and whistles. After all, who doesn’t want brand new appliances, a state-of-the-art HVAC system and a modern look and feel?

According to Redfin, houses are selling at the fastest pace ever recorded, with 59% going under contract in less than two weeks. The high demand makes it even more critical that homebuyers review all of their options, including older homes, before making an offer on their next property. 

Here are seven surprising benefits an older home may have to offer:

Lower purchase price 

Depending on the location and condition of the house, you may find that older homes sell for less or have more negotiating room than new construction houses. Some properties sell for 10% to 20% lower than new construction homes of similar size. 

While the current national median price for new construction homes is slightly less than existing homes for the first time in 15 years, reports show that this shift is primarily driven by an increased sale of high-value houses and not by the majority of new construction homes selling for less.  

In addition to the lower monthly mortgage payment, a lower price means less is needed to meet the 20% downpayment on a new home that’s required if you want to avoid private mortgage insurance (PMI). Online tools like a Home Loan Calculator can help you see the difference PMI will make on your monthly expenses.

Lower property taxes

In many states, homeowners are subject to property taxes based on an assessment of the homes’ value. Assessors review various factors when determining the value, including sale price, interior home updates — such as HVAC systems and countertops — and exterior improvements like decks, patios and garage additions.  

New homes, on the other hand, often come with all the bells and whistles that older homes lack, which drives up property value and the cost of taxes. Property taxes can also vary significantly depending on where you live, so when you first start your house hunt, it may be worth comparing the cost of living in the metros with the largest share of old homes.

A larger lot 

You may have to consider looking at older homes if having a large backyard is on your must-have list. As builders try to maximize the land in the neighborhoods they build, lot sizes have been slowly declining since 1995.  

Back then, the average lot size was .229 acres, whereas recent reports show the average lot size of new construction homes is .188 acres. In other words, you might be able to get nearly 20% more property just by buying an older home.

Better construction quality 

Older homes were built with solid wood, while most of today’s homebuilders use manufactured wood. The products look similar and do the same job, but there is a significant difference in quality and sturdiness.  

Some argue that manufactured wood isn’t as strong as the lumber used to build older homes. Manufactured wood is a more efficient use of lumber made from various pieces that may have defects, be too small to use on their own or be a type of wood not often used. In addition to manufactured wood, builders tend to use builder-grade materials in new builds, which look cheap and deteriorate quickly as the house ages. 

A unique look and feel 

Many builders offer pre-designed blueprints that buyers can choose from before construction starts. With limited designs, though, houses in newer neighborhoods typically look similar to one another. 

If you want your house to be different from those around you, an older home will deliver: Original crown molding, double ovens, giant oak trees, hardwood floors and clawfoot tubs are just a few unique characteristics of older homes that you won’t find in new builds. 

Faster move-in

If time is a concern, an older home may offer more move-in flexibility. The average closing period of an older home ranges from 30 to 60 days, whereas on average, it takes nine months for builders to begin and complete a home before buyers can move in. 

You should also take into consideration the fact that new builds may also face obstacles due to delayed permits, lack of construction workers and poor weather conditions, which could further postpone your move-in date.

Better investment 

Your home is an investment whether you plan to sell it as soon as the market appreciates or one day pass it down to your children. And like any investment, you need to weigh the initial cost with your potential profit.

Final Thoughts  

While older homes may need some initial TLC, any improvements or updates will increase your return on investment when you decide to sell in the future. New flooring, countertops and home additions add value to a property and make it more appealing to potential buyers. 

Both new builds and older homes have their pros and cons. Before settling on one over the other, it’s important that you ask questions, consider your financial situation and think about your plans for the future. Ultimately, the right decision for you will be the one that works best for your family.