Buying a new home is an exciting time in your life. There are many factors to consider when making this decision, but one of the most important aspects is whether you want to purchase a resale or new construction home.
Resale homes are typically cheaper than newer options, and they come with some maintenance history since there have been prior owners that have taken care of it. However, because these homes have already been built once before, their design may not be exactly what you're looking for. Newer construction homes offer more customization options in regards to design choices and they also tend to be more energy efficient than older properties. But when it comes down to it, both types of houses can provide buyers with outstanding living spaces!
What is a Resale Home?
Before you start your search for a new home, it is important to understand what resale homes are. Resales are homes that have already been built and lived in by someone else before. They may or may not be located in an established neighborhood. When buying resale homes you will likely find yourself purchasing the house "As Is" which can be a great option for some people. Also, resale homes are typically sold at a lower price point due to the fact that they have been owned before. This means that you may get more house for your money when purchasing a resale home!
What is a New Construction Home?
New construction homes are exactly what they sound like! These homes come from the ground up and are built with you specifically in mind. When purchasing a new construction home you will be able to customize it to your heart's desire with different paint colors, flooring, kitchen styles, etc. In addition, many builders offer incentives for buying a new construction home such as paying closing costs or offering an allowance towards upgrades!
How Do I Decide if Resale or New Construction Homes are Right for Me?
When trying to decide if a resale home or a new construction home is right for you, there are several factors that should be considered.
The primary factor to consider when deciding between a resale home and a new construction home is simply what your personal preference is. Do I want an existing neighborhood? Would I rather have everything brand-new and be able to customize my home?
Another factor that is closely related to that decision is the price! For example, someone who is on a budget may find that the resale homes in their desired neighborhood are just out of their price range. However, if they look at new construction options in the same neighborhood they may find something more affordable.
Another factor to consider is how long you plan on staying in your home. If you are planning on living in your home for the long-term, then it may be more beneficial to purchase a new construction home so that nothing needs to be repaired or replaced within the first few years of owning it! On the other hand, if you plan on staying in your home for a short period of time it may be more cost efficient to buy a resale home and sell it later on when you plan on moving.
The last factor that is very important to consider is the neighborhood itself! If you find yourself unsure whether you prefer living in an established or new development, there are several factors that may help you decide! First, if the home itself is more important to you than the neighborhood, a resale home might be your best bet. A resale home will likely come with all of the upgrades and amenities that a new construction home has but it will likely be located in an established neighborhood. On the other hand, if location is the most important factor to you, then a new construction home might be your best bet. New construction homes are typically located in newer developments that include amenities such as parks and walking trails.
The Benefits of Resale Homes
Perhaps you're looking for a home to buy, but don't want the headache of building. If this sounds like you, purchasing a resale home may be your best bet. Before buying a new house, take some time to read over these benefits of buying a resale home.
1) Quicker Move-In
The process of purchasing a new house typically takes much longer than resales. The process of building can take as long as six months, typically longer, while some homes may be ready in only two or three. Resale homes are also more likely to be move-in ready and do not require any major renovations on your part. You'll simply need to unbox and unpack!
2) Less Expensive Costs
Although you may have to pay for certain renovations, the initial down payment on resales is typically much smaller. Also, because you are not building a house from the ground up, your monthly mortgage payments will be significantly lower than they would be if you bought a new home.
3) More Flexibility in Floor Plans
If you are looking for a certain floor plan, resales may be right for you. Because many resale homes are not new, they are likely to have existing designs that meet your needs. This also means that the layout of the home is more likely to fit your goals and lifestyle than new model builds.
4) More Stock to Choose From
Do you have a particular neighborhood in mind? Perhaps there is a city that has top schools, great weather, and beautiful scenery. You may find it difficult to find exactly what you are looking for if your search is limited to new builds. Resales allow you greater freedom in choosing the right house for your budget and preferences.
The Benefits of New Construction Homes
As previously mentioned, building a new home can take some time. If you have the time to go over every detail of building a new home, you may find new construction to be the more appealing option. Check out these benefits before making the final decision between resale and new construction housing.
1) Custom Designs
If you are looking for a certain style or layout, custom houses may be the way to go. New construction builds can accommodate your unique preferences and can be designed specifically for your family's needs. Whether you want an open floor plan or multiple stories, it's likely that you will find what you are looking for in new homes.
2) Unique Selection of Floor Plans
With new construction homes, you may have access to stock floor plans that are not typically found in resales, and they will most likely match up with the latest housing trends. The design possibilities for new builds are nearly limitless! If you want something that is different from the norm, this could be the option for you.
3) Greater Home Security
New homes are equipped with the latest technology and safety features, making them a safer investment. Since most new construction is completed in a controlled environment, builders can take more time to ensure that your home is up to code. This includes installing modern heating and cooling systems as well as double paned windows which provide stronger protection from natural disasters.
4) Better Financing
Another benefit of new homes is that you can get better financing. With a new home, banks and other financial institutions may be more willing to offer you incentives and low interest rates and loans. Plus, in the long run, you know you won't have to do any costly renovations or repairs like you'd find with many resale homes.
The Disadvantages of Resale Homes
Unfortunately, resale homes may not be what you are looking for. Although most people prefer the benefits of resales, there are a few disadvantages that might make new construction your best option.
1) Less Customization
If your household is anything like the rest, it's likely that there will always be changes to make. You may find that resale homes have less options for customization, especially when it comes to renovations. New homes are likely to have more opportunities for customization so you can get exactly what you want out of your new home.
2) Higher Prices
Although the initial down payment on a resale may be smaller than a new construction house, the price of resale homes can add up really quick. When you factor in any renovations you want to make, maintenance and repairs to an older structure and your home's appliances or plumbing, resale homes can become quite the expense.
3) Less Flexibility
Although you don't have to build the house of your dreams when purchasing a resale, there may be less flexibility in choosing customization options. It's important to consider all factors before buying a resale home. Many renovations may not be allowed by zoning ordinances or building codes, so it's imperative that you take these into consideration before making the final purchase.
4) Less Control
Resale homes may not allow you the same level of control as new construction homes. New homeowners often have more say in what happens with their home than past owners, which means that you will have less control over your house when you purchase a resale.
The Disadvantages of New Construction Homes
Although the advantages of new homes are numerous, there are some disadvantages that may lead you to choose resale housing instead. Keep these in mind before finalizing your decision about which option is right for you.
Building a house can take time. If you want an instant home without having to wait any longer than necessary, resale housing may be your best bet. Although one day you might wish that you had more time to design your perfect home, this could save you from a lot of stress during the process.
2) Limited Style
In addition to limited customization options in resale homes, new construction houses also have limited styles and designs. Many builders only offer a few different models to choose from, and many of these options are quite similar, with the only customization being additional bedrooms or a garage. If you want to avoid cookie-cutter designs, resale housing may be a better option for you.
If you have a busy schedule or lifestyle, new construction homes may not be right for you. Building your home will take time and effort on your part. You may find that constant phone calls from building managers or other individuals trying to make sure that everything is done correctly can add stress to your life.
4) More Expensive
Building a home from scratch is, surprisingly, expensive! There are many costs that come with building a new construction home, from picking out tiling or flooring to selecting your light fixtures to having the walls painted. The list of expenses seems to go on and on and can be quite overwhelming when you have to deal with them all at once.
There are many factors that go into choosing whether resale or new construction housing will be right for you. New homes can provide you with the opportunity to get exactly what you want out of your house, while resales allow for easy living and more affordable prices. If you are still unsure about which housing option is best for you, keep resale homes in mind as an alternative to making changes to a new home. New construction houses are beautiful, but resales give you the opportunity to let your personality shine.