When purchasing a home you have two alternatives, a new home and an existing home. Both have their own benefits and drawbacks. Here are a few points about each of these options you should consider before putting in a purchase offer.

New Constructed Homes

New constructed houses generally are held to high quality control standards with up to date construction methods and higher energy efficiency rating than those that present in older homes. Most builders provide a one year or longer home warranty and attractive financing options that make purchasing a new home extremely easy. It should be noted that it can be difficult to resell the home for a few years because the builder is continually constructing more new homes in the subdivision.

New home prices can be higher than existing homes based on a variety of reasons. New homes generally have thousands of dollars of upgrades that are built in to the price and marketed as free incentives to purchase. Builders often allow buyers to get into a home with little to no money down or carry back second mortgages if needed to get the buyer in the home. New subdivisions likely have little to no shade due to the lack of established shade trees like you would find in an established neighborhood.

Existing Homes

Older homes tend to have a certain “character” that is missing in new homes. Having been lived in previously, older homes can provide you with a history of it’s condition and performance through the utility bills. Older homes can also be better constructed than new homes in some cases. It is real important to get a home inspection done so you can be sure the home is constructed well. Also, if any settlement is going to occur in the home, it has likely already done so in an existing home.

Existing homes are mainly located in neighborhoods where there are established school systems and neighbors who look out for one another. The yards have tall trees which provide plenty of shade and help to create that at home feeling. They often are much easier to resell soon after you buy one as the demand for homes in the neighborhood are high.

It all depends on your wants and needs as to whether a new home or an existing home is better for you. You will need to really evaluate your needs and view both options before determining which is right for you.

Hubert Miles is a free lance writer and webmaster for several financial websites. For more information on Money Blog and Money Blog.