Buying an Old Vermont Home: Truth 5

Truth#5: Vintage Homes are a great value: While often viewed as a “money pit”, older homes can offer you the most home and square footage for the money and here are some of the reasons why. When a new home is built buy the new home owner, the first part of the process involves finding a suitable lot, at today’s market value. Then you have to contract with an excavator to install the driveway, bring the utilities into the site and to the new home, do the site work, foundation hole, backfill, construct the septic system, all at today’s prices. The home is then built, once again, at market prices for materials and labor costs. At the end of the process, the bills are tallied and the total cost for the home can range for a low of $200/ square foot to $400/sq ft.

When an older existing home is priced for re-sale, it is compared to recently sold homes on the market with the appropriate corrections made for major differences in size and amenities. You never go back and start the valuation of an existing home by determining the current value of the lot in today’s market and then add the cost to reconstruct the existing home. In fact the land value in a comparative market analysis of an existing home is virtually discounted to zero. In the case of older homes with much of the original woodwork, built in’s, solid wood doors and hard or softwood flooring, the price to reproduce the finishes is not only exorbitant but in some case impossible. In the final analysis, a pre-existing older home of restorable quality is most often priced far below the underlying land and construction value of the same home if built new. While the restoration of the structure and updating of the mechanical and electrical systems can be expensive, when completed you will have that special one of a kind family home to enjoy and remember forever.

So take heart and if you have always dreamed of owning a Vermont Vintage home with all of the warmth and charm that only an older home can offer, go for it. By understanding the pro’s and cons and not setting unreasonable expectations, you can find that great older home perfect for you and your family.