New Construction vs. Existing Home: Which Is Better to Buy?

The determination betwixt caller operation and an existing location tin beryllium a hard 1 for some first-time buyers and seasoned spot owners alike. Whether you’re looking for your new-build imagination location successful Albuquerque, NM oregon a charming abrogation location successful Hilton Head Island, SC, this Redfin existent property nonfiction covers each the pros and cons to assistance you find if it’s amended to bargain a caller operation oregon existing location truthful you don’t person immoderate buyer’s remorse.

Key takeaways

• New operation homes pros see modern design, vigor efficiency, little maintenance, and customizable options.
• Existing homes pros see faster move-in options, little archetypal costs, much plan options, and are typically successful developed neighborhoods.
• You should take betwixt a caller operation and an existing location according to your budget, benignant preference, desired timeline, and willingness to grip repairs.

What is simply a caller operation home?

A new operation home is simply a recently built location that hasn’t been lived successful before. These homes are typically sold by builders oregon developers and tin beryllium custom-builds, move-in-ready spec homes, oregon homes successful caller residential developments. 

Benefits of a caller operation home

• Unused
  Since determination are nary erstwhile owners oregon residents, you’ll beryllium the archetypal to unrecorded successful the abstraction and usage each feature.
• Modern design
  Contemporary layouts that diagnostic unfastened level plans, en-suite bathrooms, and larger kitchens and closets are communal for astir caller operation homes.
• Lower attraction and repairs
  Since everything is brand-new, you won’t person to woody with immoderate hidden wear-and-tear issues oregon large repairs for a while.
• Energy efficient
  Several caller operation homes see elements similar energy-efficient HVAC systems, thermostats, oregon double-pane windows that tin prevention you money.
• Builder incentives
  Many caller homes besides travel with warranties that screen structural defects, systems, and workmanship.
• Customizable
  If the location isn’t finished being built, you whitethorn beryllium capable to take plan elements similar flooring, cabinetry, and different fixtures to acceptable your preferences.

Drawbacks of a caller operation home

• Higher upfront costs
  Typically, caller operation homes inclination much costly than existing homes owed to upgrades and customization.
• Difficulty visualizing
  You whitethorn not beryllium capable to physically circuit immoderate caller operation homes arsenic it’s inactive being built, which tin make trouble successful really picturing yourself successful the space.
• Move-in timeline
  You could look move-in delays owed to operation docket changes, weather, oregon proviso concatenation issues if the location is inactive being built.
• Developing landscape
  New operation homes are often located successful recently developed neighborhoods wherever the landscaping is little established.
• Heightened competition
  There is often much request for caller operation homes truthful you could look much competition, particularly successful a busier market.
• Limited negotiation
  While it is imaginable to negotiate a caller operation home price, builders are much apt to connection incentives similar upgrades oregon assistance with closing costs.

What is an existing home?

Whether it’s been 5 months oregon 50 years, an existing location is 1 that has already been and antecedently owned oregon occupied.

Benefits of an existing home

• Style variety
  You’ll find a wide scope of architectural styles, sizes, floorplans, and features erstwhile buying the existing location market.
• Location
  There are respective options for immoderate determination you tendency with galore existing homes located successful established neighborhoods with mature landscaping and defined communities.
• Move-in speed
  Most existing homes are acceptable to determination into aft you get the keys, unless you program to bash remodeling.
• Lower upfront cost
  While the terms ranges, existing homes thin to beryllium little costly up front.

Drawbacks of an existing home

• Dated design
  If the location hasn’t had the interior redone, you could brushwood layouts with non-standard sizing, closed level plans, and smaller closets.
• Outdated systems
  Several existing homes travel with dated infrastructure similar older HVAC, plumbing, and electrical systems.
• Repairs, renovations, and maintenance
  These outdated systems could besides request replacing, either instantly oregon soon, which tin beryllium some costly and time-intensive.
• Higher inferior costs
  Some existing homes person little energy-efficient aspects similar mediocre insulation oregon HVAC that could summation inferior costs.

How to cognize if a caller operation location oregon an existing location is close for you

Buying a location is simply a large fiscal decision, and working with a existent property agent tin decidedly marque this process easier. If you’re inactive uncertain astir which location you should telephone home, see the following:

Consider buying a caller operation location if:

• You’re flexible with the move-in timeline
• You don’t privation to bash immoderate renovations
• You similar a modern style

Consider buying an existing location if:

• You’re looking to determination successful immediately
• You privation a location with an older (or non-modern) look
• You person a smaller budget

New operation vs. existing location FAQs 

Are caller operation oregon existing homes cheaper?

While this tin vary, caller operation homes typically person a higher upfront outgo owed to the usage of modern materials and systems. However, immoderate existing homes whitethorn request repairs and renovations that tin beryllium costly.

Are owe options the aforesaid for caller operation and existing homes?

Yes, owe indebtedness options similar FHA, VA, and accepted are the aforesaid for caller builds and existing homes, but builders whitethorn connection incentives similar little closing costs for caller operation homes.

Which benignant of location is simply a amended concern successful presumption of resale?

This depends connected some section and nationalist marketplace conditions and location. New operation homes often pull buyers owed to minimal repairs and attraction issues. Existing homes amusement beardown resale records owed to being successful desirable and developed neighborhoods.

The station New Construction vs. Existing Home: Which Is Better to Buy? appeared archetypal connected Redfin | Real Estate Tips for Home Buying, Selling & More.