When it comes home buying, one size definitely does not fit all.
As you begin house hunting, the big decision will be whether you want a brand-new home that no one else has lived in or an existing home with some history and maybe a bit of character. When deciding on buying a new home vs. a resale, there are many advantages and disadvantages to both. A lot of it comes down to personal preference.
Today, most new homes are built in developments with a unified style, often with communal areas, and anywhere from a handful to hundreds of homes. Built to the latest codes and standards, they tend to be updated, energy efficient, and more expensive than resale homes of a similar size. Here are some of the pros and cons of new construction:
Advantages to new construction:
- Updated style
- May have some flexibility on design during construction phase
- Cheaper to maintain (new appliances = fewer repairs)
- Cheaper to operate (energy-efficient construction)
- Extended warranties
- A cohesive neighborhood (consistent layout, common areas)
- Frequently have a homeowners association (helps protect resale value); may have community amenities such as a pool, clubhouse and walking trails that’s included in HOA.
Disadvantages to new construction:
- Cookie-cutter design
- Higher price (upscale amenities, current construction costs, possible HOA fees)
- Limited negotiating room on price
- Generally smaller yard, fewer trees
- Potential for monthly homeowner dues
- Risk of poor construction
- Frequently less character because of a homogenous design
- Frequently have a homeowners association (can put limits on how you use your property)
With new developments springing up everywhere, it’s obvious that new construction is popular. And yet, most people buy a resale home. Of course, there are pros and cons to buying a resale home too:
Advantage of buying a resale home:
- Availability: More choices and styles to choose from
- Lower price
- Price may be more negotiable
- Track record: Many repairs already made
- Established neighborhood
- Older homes may have more character and unique characteristics
- Usually yards and neighborhoods have lots of mature trees and established landscaping
Disadvantages to buying a resale home:
- More maintenance: Things may break or wear out more quickly
- Less energy-efficient: May be more costly to maintain
- Dated design, older appliances and amenities
- Generally smaller bedrooms, bathrooms and windows
- Often will need updating
- It has been lived in
Once you find a house you like, consider its pros and cons, both objectively and emotionally. Then think about the compromises you’re willing to make. Ultimately, buying a new or resale home will be a lifestyle decision, but a licensed Realtor can help guide you to the right choice for your family and help make the buying process go as smoothly as possible.
