Buying a New Construction Home versus Resale: Pros and Cons
It’s a big decision and worth your careful consideration. To help, here is a list of pros and cons of a new home versus a resale home (and an Infographic!).
Pros of Purchasing a New Home1. Customizable
Because you are the first to live in it, new homes are often more customizable than resale homes. If you purchase a new home, especially before the construction is finished, you will likely have choices of interior and exterior colors, appliances, hardware and perhaps even flooring. With resale homes, they are usually already painted and come with previously installed appliances.
2. Modern and Eco-Friendly
If you purchase a new home, it’s likely to have a modern style and up-to-date construction, architecture and systems. You don’t have to worry about building safety codes, and your new home may be environmentally-friendly too. With resale homes, you have to consider that the house may be less eco-friendly and might not be up-to-par with safety codes.
3. Clean and Worry-Free
When you buy a new home, you won’t worry about the house falling apart or suffering from mold development or termite damage. Any damage or mess you find in the house will be from you or your family members instead of the previous owner, as is possible with a resale home.
1. Higher Cost
If you are looking for a house that fits within a strict budget, a new home may not be the way to go, as new houses generally cost more per square foot than resale homes.
2. Not Necessarily in an Established Neighborhood
Though resale homes are not as customizable, they can be a good investment because the neighborhood around them is already established. New homes are generally located in brand-new housing developments, so your neighbors will be empty houses or people who have just moved in like yourself.
1. Appliances are Included
Buying a new home is costly – on top of paying for the new house, new houses generally only come with a few basic appliances, and often developers leave the rest to be filled in to your liking. With a resale home, more permanent appliances or other special features that the previous owner paid for but was unable to take with them when they moved will still be there.
2. In an Established Neighborhood
Because resale homes are older than new houses, the neighborhood has already developed around them. If you buy a resale home, your neighbors will be established in their homes and may have recommendations for restaurants, services and stores nearby as you become acquainted with the area.
1. Upgrading Technology is Expensive
Resale homes generally feature outdated technology in terms of electronic appliances and sometimes construction. Unfortunately, upgrading these things can be very expensive.
2. Hidden Money Traps
While many resale homes are great, high-quality properties, others are simply hidden money traps. You could end up spending more money fixing all the issues of the resale home than the amount you were trying to save by buying resale.
3. Used Systems and Appliances
Appliances already in the house can mean a cost savings up front, but they may need to be repaired or replaced unexpectedly.
An infographic of the ups and downs of new homes versus resale homes from our friends at Landmark Home Warranty.