Choosing Between a New Build and Resale Home – The Pros and Cons

One of the big decisions facing homebuyers is whether to purchase a new construction or an existing resale home. Weighing the pros and cons of each option will help you make the right choice.

Customization

A major advantage of new construction is the ability to fully customize the home. You select the floor plan, finishes, colors, and amenities based on your lifestyle and tastes. Though you can remodel a resale, customizing a new build often provides more flexibility and value. Just be mindful of going overboard on upgrades that inflate the price. Builders may allow you to work with an interior designer to personalize finishes within your budget.

Efficiency

New construction allows you to start completely fresh with the home optimized for energy efficiency. The latest energy-efficient windows, appliances, lighting, and insulation lower utility costs. Reaching zero energy status is much simpler without having to retrofit an older home. New efficient HVAC and water heaters also have longer lifespans. Avoiding renovations needed to improve efficiency is a hidden saving.

Warranties

Most builders provide a 1-year workmanship warranty covering defects and flaws. Major structural components may have longer 10-year warranties. Having this peace of mind on such a major investment is a comforting advantage of new construction. On a resale home, once you close the deal flaws become your responsibility to repair. New homes may also come with appliance and system warranties you don’t get buying used.

Timing

With resale homes, you can move in immediately after closing. New construction typically takes 6-12 months to complete. The delayed gratification of a new home requires some patience. But if timing isn’t urgent, you can make finish selections during the building phase and watch progress. Just factor in costs of interim housing.

Costs

According to the experts at Colorado mortgage brokers Mortgage Maestro, though resale homes are often cheaper, costs depend on the market. Some new builds are competitively priced, and you know upfront what you’re getting. Resales may have hidden issues that increase total costs over time. But you also avoid new construction loan fees and rising material costs. Do a thorough cost comparison. 

Neighborhood

If schools, amenities, and neighborhood character are most important, resale homes allow you to buy into an established area. With new construction, you take more risk on how the community ultimately develops over time. But you can research builders and consider the neighborhoods of their other developments to assess quality.

Selection

More existing home inventory gives resale buyers ample selection. You can cherry-pick the perfect floor-plan, lot and layout. New construction choices are limited to the models and phases the builder is currently selling. But you may find a model very well suited to your needs with the ability to make some modifications.

Appreciation

In the first 5-10 years, new construction may appreciate faster due to new amenities that retain buyer appeal. But resales in desirable neighborhoods also typically see consistent home value growth. If you plan to sell soon, new builds offer some advantage. For long-term holds, location drives appreciation more than age.

Inspection

Brand new homes should have minimal issues uncovered during inspections, beyond simple builder punch list items. Inspecting existing homes often reveals more significant repairs needed that could run up costs. But you also get full transparency on a resale’s condition before closing.

Conclusion

While benefits exist to both options, you can’t go wrong buying in a location you love at a price you can afford. Think through which pros matter most for your home search. The right choice comes down to personal needs and priorities rather than universally better options.