Deciding to move to a new home, or your first home is a major moment in your life! This is a decision that should not be taken lightly. You need to take the proper time to research and consider what exactly will suit your lifestyle and find the right place for you. Whether this is your starter home or your forever home, you need to put in the same amount of effort to ensure you’re getting exactly what you want.
Take the time to research your options. Do you want to sift through the listings to find an affordable, well-loved home that’s move-in ready? Do you want to take the extra time to find a builder and design your dream home? Whether you’re considering a new construction home or looking for that perfect resale home, it’s important for you to understand the differences and determine what will be best for your budget and your lifestyle.
What’s the Difference?
There are essentially two options when it comes to purchasing residential real estate: resale, or existing, homes and new construction homes. Both of these options have their own advantages and disadvantages, which we’ll go into more detail later on, and deciding which one is right for you takes a lot of consideration.
Resale homes are established houses that have been lived in, whether it’s been lived in for a year or for fifty years, and is being listed as-is. These homes have a great deal of character and tend to be the more affordable option.
New construction homes typically come in three varieties:
- fully customized homes
- new builds
- quick possessions
Fully customized homes offer the most variety of choice for the homebuyer to select. Purchasing this type of home allows you the most control over the layout and design, from the foundation to the roof. This is typically the most expensive option.
New builds give you a base structure, floorplan, and exterior features and the rest is up to you. You’ll have the choice of flooring, countertops, and all the other interior finishes. You still get that creative say in what your home will look like, but you’re spared the time and effort of choosing every single aspect of the home.
Quick possession homes don’t offer the customization of the previous two styles as these homes are already finished and ready for you to move in. Although you don’t get a say in the features of the house, you are still gaining a brand new home complete with brand new fixtures and features.
The Pros of New Construction Homes
The possibility for more customization opportunities. When you have a specific vision in mind, the best way to get exactly what you’re looking for is to go after a new construction home. These homes tend to allow the homebuyer to have a heavy influence in the layout and design, more specifically suiting your ultimate vision.
The house is yours to break in, in your own unique way. Knowing that no one has previously lived in your home, that no animals have left their stains, and that you are the very first to create memories there is something special. This leaves you and your family to scratch the floors, dent the railings, and add all the little nicks and bruises that turn a house into a well-loved home.
A brand new community in the area of your choice. Looking for the right resale home can mean that you need to compromise on location to get the specific home that you have in mind. Building a new home offers you more flexibility to get exactly what you want in a variety of areas. A new neighborhood also includes nicer streets and sidewalks, complete with few to zero potholes.
Your new neighbors are likely within your demographic. Developers often take into consideration who will be attracted to the area where they’re building, whether they’re drawing in urban professionals, young families seeking a starter home, or maybe a retirement community. When you choose a builder who’s working on a large development of homes in the area, there’s a good chance that you’ll fit right in with your new neighbors.
More environmentally friendly options. Many new homes are boasting of their green features. Eco-friendly and energy-efficient electrical and plumbing technologies are all the rage and can only benefit your home. Plenty of features can be altered to be more green as well such as the thermostat, windows, and lighting. Not only are these options great for the environment, but they can save you a lot of money on utilities in the future.
Fewer maintenance fees and costly repairs. A freshly built home equals no tedious and costly repairs. If your house was built right and you put the proper maintenance protocols in place, you shouldn’t have to worry about repairs for quite some time! The maintenance required on a new home is straight-forward and easy to keep on top of, allowing you to fully enjoy your beautiful new home.
New features can be as affordable or expensive as you make them. Depending on how you’ve gone about choosing your home builder, you may have a great deal of flexibility when it comes to picking your fixtures and features. Most builders will offer you a selection of standard, more affordable features, and a selection of upgrades of various price ranges. Keeping your budget in mind, you can splurge on a few fixtures or appliances here and there, or you can go all out and select the top upgrades. It’s completely up to you!
A flexible move-in date. When you purchase an existing home, you need to be ready to take ownership when the seller is ready to move. If you’re opting for the new construction route, chances are you’ll get a guaranteed move-in date and you will have ample time to prepare for that day. This can be a huge relief for those who would like time to get their current house in order and sell at a leisurely pace.
Related Post: The Complete Guide To Buying A New Construction Home
The Pros of Resale Homes
More affordable options. Typically, resale homes are the more affordable option on the real estate market. As these homes are older, there’s generally more wiggle room when negotiating the price. Some sellers also include all the appliances with the purchase of their home, saving you the added hassle of researching and buying brand new appliances.
Plenty of established neighborhoods. Since resale homes have been the more popular method of real estate for many years, you have a greater selection of already established neighborhoods to choose from. These communities are also almost always along the route of urban transit, allowing for easy transportation to the nearby amenities. Older neighborhoods also feature more mature trees and fuller landscapes. These communities are full of character and charm!
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Diverse and helpful community. Moving to a new area can be intimidating. If you move into a neighborhood whose residents have been around long enough to really know the area, they can give you a hand at familiarizing yourself with the neighborhood. You’ll also probably find that your new community is filled with an interesting and unique demographic.
Possibility to flip and gain a profit. If you have the money to invest, flipping a house can be extremely rewarding. There are plenty of older homes that aren’t looking so hot, that need a little TLC. These homes are generally pretty cheap, so if the house still has good bones and you have the extra money to sink into renovations, this can be a great option to influence the home with your creative flare. If this isn’t going to be your Forever Home, you can sell the house and make a decent profit to put towards your next investment.
These homes are usually move-in ready. One of the best aspects of purchasing a resale home is that they are typically ready for you to move in as soon as possible! (Or at least, within a month.) Some sellers opt for a longer closing date, but for the most part, you’ll be able to take over ownership within thirty to sixty days after signing the paperwork.
Opportunities for immediate access to amenities. Some neighborhoods offer community amenities, such as a pool or a fitness center exclusive to the locals. Both resale and new construction homes may offer these amenities, but a new development may not be complete when you buy your house. An established community will allow you immediate access to these fabulous amenities.
The Cons of New Construction Homes
A more costly option. Although the energy-efficient options of a new construction home may save you money in the long run, the initial costs of building a home are typically greater than purchasing a resale home. Not only are building materials expensive, but purchasing all of your fixtures, all of your appliances, and installing all the inner workings such as electrical and plumbing, all add up really quickly.
Longer time frames with possible delays. For the most part, builders will offer a guaranteed move-in date. However, sometimes things happen that are out of the developer’s control. This can include anything from a shortage of building materials to wrong shipments being delivered. These small setbacks can push your move-in date even further from the already long closing date.
Less variety in design and community. Although shiny new sidewalks and brand new buildings are a major draw for a lot of people, there is a downside to these brand new communities. Visually, new developments are not too unique as many builders have a set number of models that they use throughout their neighborhood. The landscaping is typically very similar, with little to no variation from house to house. Modern homes lose that charm that comes with established neighborhoods.
The Cons of Resale Homes
No opportunity for customization. When you purchase a resale home, what you see is what you get. There’s no picking which features you prefer, you don’t always have a say in the appliances, and the paint color is what it is--even if that color is incredibly outdated. Now, these are all fairly simple fixes, but it’ll take that extra time, money, and effort after you’ve moved in.
A riskier investment. The seller is supposed to disclose any major aspects of the house. Unfortunately, that isn’t always the case. If you don’t ask, they may not tell you that the roof has never been replaced or that in the springtime, the basement floods during heavy rains. Not knowing exactly what the house has been through or the potential condition of the structure is a greater risk than building a brand new home.
Not as eco-friendly. The older the home, the more likely that it is not made up of energy-efficient and environmentally friendly features. Green features have only just become the more popular option in the last decade or two, so if this is an important aspect for your home, you’ll likely have to install new appliances or rework the wiring in your used, new home.
A lack of warranty. Most homebuyers have a home inspection completed before they officially close on a house. These inspections will give you an idea of what state the house is in and any potential damages that will need to be fixed either immediately or in the near future. There’s always the possibility that something may be missed, even if your potential home passes the inspections. If this is the case, you’re basically on your own. Home insurance will cover the cost of damage due to natural disaster, but if the damage is due to faulty construction or normal wear and tear, it’s up to you as the homeowner to put up the money to fix these issues.
Whichever option you choose when purchasing your next home, know that there really is no right or wrong choice! Everyone is looking for a home to suit their own lifestyles, different features and amenities are appealing to different people, and budget restrictions will differ from household to household. Take the time, do the research, confer with your real estate agent and figure out what will work best for you!