Should You Buy New Construction or a Resale Home?

Jun 3, 2020 | Mortgage


Buying a home? Take our wish list and compare New Construction to Resale Homes and see which could be the best purchase for you!

Wishlist item: Low Utility Costs

Hands down, new construction wins this round. You will start with energy efficient appliances and likely have options for smart home integrations like an alarm system, sprinklers, lighting etc. You will be paying higher costs for less in a resale.

Wishlist item: Charming Style

This depends on what exactly your style is and what you’re looking for, so let’s break it down: In new construction, you will get to choose the cabinets, finishes, flooring and more. You will generally have a blank canvas for the walls, and you can add your own charm once you move in. In a resale home, it depends on the previous owner’s style, and the age of the house. If you find the right home for you, everything from the paint colors, backsplash, remodels/ additions, and original charm might increase the value for you. Previous owners may throw in furniture and amenities to sweeten the deal as well. If it’s an older house, things like clawfoot tubs and vintage details might be a selling point or you.They also might be the reason you walk in, and walk right on out to view the next house.

Wishlist item: Upgrades

In a new construction, you’re going to get new appliances and sometimes incentives from the builder for upgrades, hardwood instead of carpet, additional closets or bathrooms. If you want a pool though, you’re going to sink a lot of money into it. In a resale, the upgrades may already come with the home. The previous owners may have already invested in a pool or addition which means the cost will be minimal to you. If you come across a home owned by a great cook, you might even snag a gas stove over the general glass top ones found in a lot of new construction.

Wishlist item:  Lower Maintenance

New construction is the leader with structural, cosmetic, and electrical warranties on almost everything. You will have a brand new roof and appliances. In a resale, there are no guarantees and there could be unexpected and costly surprises. In a resale home, you’re also going to come up against stains on the carpets and scuffs on the walls- we will visit how to address these issues, but if you don’t want to inherit other people’s problems, it may benefit you to stick with new construction.

Wishlist item: Landscaping

You generally won’t have much done for you in new construction unless you pay up for it, whereas in a resale, you will have an established neighborhood and folks who have fostered curb appeal will have planted shrubbery, and more mature and shady trees. In an established neighborhood, you can also get a feel for the community, and how well your neighbors are taking care of their homes over all.

Wishlist item:  Better Value

You are likely to get more house and more space for your dollar in a resale home. Everything is negotiable, so don’t hesitate to ask that they replace that gross carpet, or have the roof/electrical thoroughly inspected and replaced if needed before you move in. However, value is subjective. How long are you planning on staying in the home? The value when you go to resell will be lower than in new construction too. Also, for many people, they love the feeling of everything being brand new and not having been used by another family. In that case, new construction holds more value for them.

Wishlist item: Prime Location

With new construction, you are most likely going to find yourself in the suburbs. However, there are more options for resale. You can live in the city, suburbs, or out in the great wide open. This one definitely depends on your individual needs and preferences.

Wishlist item: Easy Closing

New Construction usually means there is no set closing date. You will have an expected finish date, but during building, better to expect that mistakes will be made, and delays will happen. Especially if you want it perfect. In a resale, you will most likely have a 30, 60, or 90 day closing. If you have a tight timeline, a resale home may be for you.

Whether it’s a new build that hasn’t broken ground yet, or a charming place that already has its own history, the right home is out there for you. Take stock of the things that you want most in a home and see what might be the right match for you. If you’re looking for mortgage options, contact us today at (877) 255-3554 or start the pre-qualification process here.