The Pros And Cons Of Buying New Construction Vs. A Resale Home

By
Real Estate Agent with House Stories

Buying a new home is a big decision and can be filled with excitement, but there are a few things you will want to consider before jumping into it. There are plenty of reasons why some people choose to buy brand new homes while other people prefer buying resale homes instead of building new.


While there are plenty of unique benefits to both building new and buying resale homes, this article will go into detail about the pros and cons of each. 

Know the Difference

New construction homes are brand new buildings that have never been lived in and have recently been completed or will be built after you've decided what you want. There are many builders in each metropolitan area who build new housing developments, which are then turned over to buyers who purchase plots of land. 


Resale homes are properties that have already been lived in and then purchased from the previous owner. You'll find a great deal of variety when you search the listings looking for an established home. Sometimes you can find nice resale homes on the market that are in great condition and match your budget exactly, but you can also find inexpensive homes that are ready to be gutted or renovated if you're looking for a project home.


Pros of New Construction

The main benefit to building a new home is you can choose exactly what features you want in your home as well as how big or small it will be. This is ideal if you have kids and are looking for a more spacious home. 


Plus, with new homes you will have the option of choosing custom features such as a finished basement or upgraded appliances which are worth paying extra money for if it means getting exactly what you want. 


You don't need to worry about getting stuck with an expensive repair bill because the previous owner did not take care of the home properly. New homes have warranties and are usually backed by the builder's name, which is something that offers peace of mind. If something does go wrong, the builder will fix it and you won't have to deal with it yourself which is worth paying a premium for.


Pros of Resale

There are plenty of benefits to purchasing resale homes. One great thing is you can get great deals on the price of a resale home and there is a lot more variety than what you would find with new construction. You don't have to worry about paying extra for features that are unwanted, which helps keep costs down when buying a resale home. 


Also, resale homes can offer interesting architectural features such as exposed brick walls, wood floors, or old
hardwood flooring that might not be available with new construction. You will also find a lot of resales come with spacious yards and large rooms which makes them perfect for families who want privacy while still being close to neighbors. 


Cons of New Construction

One negative thing about building new is you won't have any character and charm that comes with resale homes. With a new home, everything will be brand new which may make it feel sterile and not very welcoming for families with kids. There aren't many resale homes available in certain areas which means building new might be the only option for a new home in that area. 


New construction homes also come with plenty of unknowns, which can turn off some buyers who don't like things they cannot predict or control. For example, if there is an issue with your builder and you aren't happy with how long it will take to fix the problem, you will have to start from the beginning and find a new builder.  


Cons of Resale

Resale homes are more affordable and can still be just as nice, but they might not have all the features that you want. You may end up having to settle for less than perfect or have to go through the trouble of getting upgrades done yourself. If you are not careful, you can end up paying a lot more money on a resale home than it would have cost buying new construction or even building one from scratch.


Resale homes can be difficult to sell if there is anything wrong with them or something that needs upgrading because they do not have the luxury of being a brand new home. Resale homes also don't often come with warranties and there is always the chance of having something go wrong that will cost a lot to repair or replace. This can make resale homes more expensive than they appear on paper, especially if you do end up needing some repairs done.


Resale homes and
new construction have their own good points and bad points, which is why the choice for which one you prefer will really come down to personal preference. It's up to you to decide what features are most important when looking for a new home and then compare them between resale and new construction before making your final decision.

Sources:

https://www.modernrealtyguam.com/blog/pros-and-cons-buying-new-construction/
https://www.forbes.com/advisor/mortgages/new-construction-home/

https://www.homelight.com/blog/buyer-new-construction-home-buying-process/

Image source:
https://pixabay.com/photos/apartment-view-interior-room-3564955/

Comments (1)

Kristin Johnston - REALTOR®
RE/MAX Realty Center 262-567-2455 - Waukesha, WI
Giving Back With Each Home Sold!

Great information.  Thanks for sharing and enjoy your weekend!

Sep 03, 2021 07:28 AM