Deciding between a new construction and an existing home can be challenging for both first time buyers and veteran owners. Whether you’re looking for a new dream home in Albuquerque, New Mexico or a fascinating vacation home in Hilton Head Island, South Carolina, this Redfin Real Estate Article covers all the pros and cons and helps you decide if it’s better to build a new or existing home.
Key takeout
New Construction Home Professionals include modern design, energy efficiency, reduced maintenance and customizable options. The advantages of existing homes include faster travel options, reduced initial costs, and increased design options, usually found in developed neighborhoods. Depending on your budget, style preferences, desired timeline and willingness to handle repairs, you will need to choose between a new construction or an existing home.
What is a new construction home?
The new construction home is a newly built home that you have never lived in before. These homes are usually sold by builders or developers and can be custom built, ready-to-spec homes, or new residential development homes.
Benefits of a new construction home
Unused
There are no previous owners or residents, so you will first live in the space and use all the features. Modern design
Modern layouts featuring open floor plans, private bathrooms, larger kitchens and closets are common in most new construction homes. Low maintenance and repairs
Everything is brand new so you don’t have to deal with hidden wear and teer issues or massive repairs for a while. Energy efficiency
Some new construction homes include elements such as energy-efficient HVAC systems, thermostats, or double-pane windows that can save money. Builder Incentives
Also, many new homes come with warranty covering structural defects, systems and finishes. Customizable
If your home is not being built anymore, you may be able to select design elements such as floors, cabinets and other fixtures to suit your taste.
The disadvantages of new construction homes
Higher advance costs
New construction homes are typically more expensive than existing homes due to upgrades and customizations. The difficulty of visualization
It may not be possible to physically tour some new construction homes as they are still being built. Travel timeline
If your home is still being built, you may face delays in travel due to changes in construction schedules, weather, or supply chain issues. Landscape development
New construction homes are often found in newly developed areas where landscaping is not well established. The rise in competition
In many cases, there is an increasing demand for new construction homes, which means you may face more competition, especially in busy markets. Limited negotiations
It is possible to negotiate the price of a new construction home, but builders are more likely to provide incentives such as helping with upgrades and closing costs.
What is an existing home?
Whether it’s five months or 50 years, an existing home is already owned and previously owned or occupied.
Benefits of existing homes
Style diversity
When shopping at an existing home market, you can find a wide range of architectural styles, sizes, floor plans and features. position
With many existing homes in established areas with communities defined as mature landscaping, there are several options for where you want. Relocation speed
Most existing homes are ready to move after you have obtained your key unless you plan to do a modification. Cost before reduction
Prices range, but existing homes tend to be cheaper in advance.
Disadvantages of existing homes
Outdated design
If your home doesn’t have an interior redo, you may run into layouts with non-standard sizing, closed floor plans, and small closets. An outdated system
Some existing homes come with age-based infrastructure such as old HVAC, plumbing and electrical systems. Repairs, renovations, maintenance
These outdated systems also need to be replaced soon. Higher utility costs
Some existing homes have less energy efficient aspects like insulation and HVAC, which can increase utility costs.
How to know if a new construction or existing home is right for you
Buying a home is a big financial decision and working with a real estate agent will ensure this process is easier. If you are still unsure which house to call your home, consider the following:
Consider purchasing a new construction home if:
You are flexible in a move-in timeline where you don’t want to renovate that you prefer modern styles
Consider buying an existing home.
You want to move in soon You want an old (or non-modern) exterior home where you have a smaller budget
New Construction and Existing Home FAQ
Are new construction or existing homes cheap?
This can vary, but new construction homes usually have higher upfront costs due to the use of modern materials and systems. However, some existing homes may require repairs or renovations that may be expensive.
Are mortgage options the same for new construction or existing homes?
Yes, mortgage options like FHA, VA, and traditional are the same for new builds and existing homes, but builders may offer incentives such as reducing the cost of closing new construction homes.
Which type of home is a better investment when it comes to resale?
This depends on the situation and location of both local and national markets. New construction homes often attract buyers due to minimal repair and maintenance issues. Existing homes show strong resale records because they are in desirable neighborhoods.
