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Newer Homes in Older Subdivisions

What to consider when buying a new home in an older neighborhood

You are looking at a new home that is situated in an older neighborhood and are trying to discover it’s value. There are a few things you need to take into consideration to get an idea of this home’s now and future value:

Construction Quality:

In some cases, newer isn’t always better. Your home appraisal will almost always come our higher on a new home vs. the exact same resale property. There are older homes that were built with a great deal more quality then newer homes. Some older homes were constructed with materials that would not be used in newer homes due to the cost. For instance, if you are looking at a new home that was built in a neighborhood that consists of old, restored Victorian homes, you’re not going get the same value as these older stately homes. In Victorian times, floors were solid wood, many windows had stain glass and crown molding was an art! A new home built with these materials would be extremely expensive! That said, there are older neighborhoods that a new home could very well be superior to the older properties surrounding this home.

A Premium For New Construction:

Let’s face it, buyers are willing to pay more for a home that no one else has ever lived in before. That is the premium for new homes.

Premium Does Not Have A Long Life:

The premium cost for a new home feel will dissipate pretty quickly. You should keep in mind that any premium you paid for that new home, 2 years ago, may not hold any value in today’s resale market.

An Infill Location:

City or town planning will take land within an area’s environment that usually is open space and give it over to a builder for new construction.

That said, if the home you are looking to purchase is part of an infill project, it might not be the best location. In many cases, the premium locations are already built out. Also, infill plots are usually very small in comparison to the lots older homes are sitting on. Consider a place like Plano, TX: When homes were first built there, most had a great deal of land. New homes now are practically sitting on top of each other due to the lack of space.

Does A New Home Conform With The Neighborhood:

Look at the home your are considering purchasing then look at the surrounding homes. Does this particular house fit in as far as design and size? Does it look a little awkward and out of place? Whether a home fits into a particular neighborhood or not can have a huge impact on it’s value.

Change Within A Neighborhood:

There are many cases where older neighborhoods go through complete overhauls. Older homes are torn down for newer, larger homes. Neighborhoods are being revamped bringing these areas backup by cities or towns for neighborhood revamps. On the other hand, older neighborhoods, such as that Victorian neighborhood, can be on the local preservation list by historic societies and a new home would really look totally out of place.

Ask Pertinent Questions – Do Not Assume:

Many times buyers will automatically assume that a newer home would be worth more than an older home. That’s just not always the case. Ask yourself, how the market sees this property? Down the road, would other buyers want to live in this home in this neighborhood?

Do some homework and see if there are other newer homes and what they sold for. When considering new construction, ask what kind of what kind of comps were attached to the new home. Was a particular home loaded with concessions and credits bringing the home in for a higher cost?
Again, newer doesn’t always mean better, but in some cases it is better.

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Austin neighborhoods we appraise

We provide real estate appraisals and related services to the following cities, towns and communities across the Austin metro area. We cover a large portion of Central Texas - if you don't see your area below, please call to confirm with one of our friendly staff.

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Anderson Mill | Bee Cave | Briafclif | Brushy Creek | Buda | Cedar Park | Creedmoor | Del Valle | Elgin | Georgetown | Hays | Hutto | Jollyville |
Jonestown | Kyle | Lago Vista | Lakeway | Leander | Manor | Mustang Ridge | Pflugerville | Point Venture | Rollingwood | Round Rock |
San Leanna | Shady Hollow | Sunset Valley | Webberville | Wells Branch | West Lake Hills

what customers like you say about our
Austin Property appraisal services

We stand behind our work and our customers have nothing but great things to say. Here are a few examples:

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Real Estate Appraisals Austin
4.8
Based on 45 reviews
Ed came out on short notice to measure a new home I was in the process of purchasing. He was professional and honest in his work. I found him online and it was not through my lender. I wanted an independent appraiser since the lender was connected to my builder. Definitely will use him again if I ever needed to. I was a first time home buyer and he was fair to me and helpful. Thank Ed!
Jennifer Nguyen
Jennifer Nguyen
The realtor that came out was very professional and thorough. I would recommend this service.
Nancy Crow
Nancy Crow
This company is contracted to my mortgage company for market appraisals to remove PMI. They contacted me right away and had the whole thing turned around in less than a week. Appreciate the speed and the quality of the service and would definitely recommend.
Jeanna Kozak
Jeanna Kozak
I was able to schedule an appraisal just two days after contacting the company. Likely this was a fluke, but it worked well for me! Our appraiser was a bit late, but that was the fault of the previous appointment. Once he arrived, he listened to everything we pointed out. Our appraisal was fair for our neighborhood we thought and the report arrived about 8 days after the appointment. We are happy and will recommend Real Estate Appraisals Austin to any others we know.
Leah L
Leah L
We used Real Estate Appraisals Austin and found them to be very professional, accommodating and efficient. Their work product was thorough and very well presented. We would definitely recommend them and would use them again.
Calvin Porter
Calvin Porter
I recently had a rental appraisal of my property. The appraiser showed up on time and did a thorough analysis. The report took a week, but it was very thorough. I am very happy with the appraiser and the report.
Karthik Manamcheri
Karthik Manamcheri
We recently used Real Estate Appraisals Austin to appraise a property we have owned over 15 years and have had multiple offers to sell. Michelle was very helpful and professional in coordinating with our property manager. She responds very quickly to calls or emails. Edward did a thorough appraisal and took the time to call and discuss details. I definitely would recommend this company to anyone considering an appraisal in Austin. The price was very reasonable, I felt, for the value we received.
Lorrie Coles
Lorrie Coles