Resale vs. New Construction

The decision to purchase an existing home or new construction can be challenging. With both, there are pros and cons. Here are some helpful tips to consider:

Resale Pro’s

• Finding a home that meets all your wants and needs in a specific location or school district may be easier with an existing home.
• When purchasing an older home, you can find charm and character that are tough to recreate in a new home. They may have old hardwood floors, wood burning fireplace, and beautiful wood built-ins.
• Also, a resale home may have existing appliances, window coverings, mature landscaping, and completed upgrades and fences that you would otherwise have to pay for with new construction.
• Another advantage to looking for an existing home is that you can immediately see what the neighborhood looks like. You are able to see the character of the neighborhood and if the neighbors keep up maintenance on their homes
• The opportunity for ‘sweat equity’ exists in a resale home versus new construction. Many homeowners enjoy remodeling projects, and making their home unique by adding their personal touch. By making upgrades to the home, you have the potential to significantly increase the value of the home.
• Finally, if you are looking to move into a home fairly quickly, an existing home may be the best option for you.

Resale Cons

Even though existing homes have many benefits attached to them, there are some disadvantages.

• First, you can not choose the floor plan of the home. You may feel that the layout is “choppy”, that the kitchen does not have enough cabinet space, or the bedrooms are too small.
• Resale homes may be outdated, and require major remodeling to modernize them. They may have pink tiles in the bathroom, orange shag carpeting, or the orginal cabinets that you will have to set money aside to update.
• Also, older homes can contain lead based paint absteos, have mold issues, older wiring or roofs that need to be replaced.
• Monthly utility bills may be higher due to poor insulation, air leaks from the older windows, and the appliances may not be as efficient as the products made today.

New construction Pros

• Watching your home be constructed from the ground up can be very exciting! You are able to view first hand the steps that lead to the final product.
• New construction allows you to chose the floor plan that best suites your needs. They reflect modern day lifestyles with open living areas, luxurious master suites, and large walk-in closets.
• Once you have chosen the layout of the home, you are then able to select the interior features you wish to have. The selection process will give you the opportunity to personalize your home by choosing the flooring, cabinets, countertops, and all fixtures to be included.
• Overall, new homes are significantly more energy efficient because of the heating and cooling systems used, and the types of windows placed in the home. They contain up to date wiring that will accommodate modern technologies, use exterior materials that require less maintenance, and have better insulation. Also, newly built homes generally come with a builders warranty attached to it.

New Construction Cons

• You may be limited geographically when deciding to purchase new construction. If you have determined a specific location and/or school district, this may not be an option.
• Lot sizes for newly built homes tend to be smaller than those of resale homes. The backyard and front yard may not be the size you would like, especially if you have large pets.
• Though you are purchasing a new home, it may not be perfect. Materials may have been installed incorrectly, or damage has been done to the flooring or walls when construction was taking place. Before you close on a new home, either have an inspection completed, and/or conduct a final walkthrough with the builder. If you chose to do the final walk through, have the inspection a few days before closing with a punch list ready. This will allow the builder enough time to make any necessary fixes before closing.
• Another downside to new construction is how the builder handles the warranty work done on the home. Many times, the builder will go out of their way to fix any issues that the home has after you move in. However, some builders are reluctant to make any repairs. They become difficult to work with after the closing documents have been signed. Your real estate agent will be able to provide you with suggestions on how to handle this situation.
• Furthermore, if you are only looking to live in your home for a short period of time, new construction may not be the best option. If you are one of the first homes in a community, you will be competing with the builder when selling your home. Buyers may chose to build a personalized home, with incentives from the builder, versus purchasing a resale.
• Lastly, you must budget for those items that are normally not included in the sale, such as: refrigerator, washer, dryer, window coverings, and a fence and landscaping for the backyard. When you are determining how much you are looking to spend on a home, do not forget to account for these items.