Some buyers turn to new construction because they can’t find what they want on the market. And other buyers want to fulfill a lifelong dream of building their forever home. But the choice is not always clear cut. The prospect of getting something brand new vs. used is always more exciting, but it’s more expensive as well. And it’s a bigger time commitment. Let’s break down the pros and cons of building new vs. buying an existing home to help navigate what makes sense for your family.
Pros of Building a New Home
Everything is new. From flooring and carpeting to bright walls and doors without scratches. Everywhere you turn, the structure is new. You can avoid the whole outdated kitchen and bath remodeling phases because you’re designing what you want from the start. And new appliances come with warranties and have no wear and tear, so you can avoid purchasing maintenance plans for the first few years.
You get the floorplan you want at the start. Instead of knocking down walls, you get to see work with an architect to create what suits your lifestyle. And you’re not stuck with having to rip out carpeting or countertops you don’t like because you’re choosing everything from square one.
Entertaining is easier. Newer homes tend to have more open spaces both inside and outside, making entertaining more convenient and comfortable.
Energy efficiency and technology is easily incorporated. Because new construction needs to meet current building codes, they tend to be more energy efficient. They’re also easier to integrate technology such as automated features with smart phone control. These items can be built in and configured immediately instead of ripping out drywall and patching up holes after installation.
Cons of Building a New Home
You’ll wait longer to move in. New homes typically take four to six months to build. That’s much longer than the typical month or so it takes to close on an existing home.
You may face budget issues. Making design changes or builder upgrades could cost more than you bargained for.
You might be responsible for the construction loan and permits. Not all builders will do this for you. Even if a builder does handle the permits, understand what is needed to keep construction under code. Some recommend that you hire your own inspector to ensure the job is done correctly the first time.
Legal ramifications might be limited. The builder may ask you to sign documents that limit your rights if you ever need to take the builder to court for some reason. Consult an attorney for legal advice prior to signing if you’re concerned.
Pros of Buying an Existing Home
It’s more affordable. An existing home usually costs much less per square foot than a new one. After you’ve agreed on price and get through the inspection process, the price is set. With a new home, the price can be a variable target as changes and upgrades are made during the build.
You see what you get before you buy. No visualization is necessary in terms of the layout. What you see is what you get. It’s hard to know what a room will look like when considering a two dimensional drawing on paper. While you may still need to visualize how a home will look with your belongings, you have a better sense of knowing what you’re getting from the start in an existing home.
You know the neighborhood’s character immediately. An existing home is part of an already established community, so there are probably more mature trees and personality in the neighborhood. In new communities, yards tend to be more barren and empty lots or unsightly construction sites remain part of the scenery for at least a year or longer.
Upgrades can be made over time. If there are areas of the home that need to be updated or repaired, you can take your time implementing these changes over the years instead of financing everything at once.
You can move in quickly. Most of the time you can move into an existing home within a month to six weeks after your accepted offer. This is especially beneficial for those who need to move on a tight timeline.
Cons of Buying an Existing Home
Maintenance issues are more likely. Heating and cooling units, kitchen appliances, and roofing are just some of the major necessities of a home that might require maintenance soon after your purchase. These are expensive items to replace if not maintained properly. Sometimes it’s not easy to tell what kind of care the previous owner invested in these items until something goes wrong.
Home insurance is higher. The cost to insure a pre-owned home is higher than a new home because newer homes usually come with more updated features.
You’ll spend more on décor sooner than you planned. There’s usually a difference in décor taste from one owner to the next. It’s likely that you’ll want to make the house your own sooner rather than later. Wallpaper removal, fresh paint, and carpeting are usually the first changes made.
You’re stuck with the layout. Once you’re in the home, it might be more obvious that the layout doesn’t work well. While homes can be reconfigured to some extent, it’s often cost prohibitive. You might need to arrange furniture or remove a wall to adapt to the limitations of an existing home’s quirky layout.