New Construction vs Resale? Which is right for you?
Is 2019 the year you make a move? Whether you’re looking to move to a larger, or a smaller, home (those processes themselves are quite different) you may be wondering which is better for you- new or resale.
There are a few things that differ between the two, and it’s definitely beneficial t to have those in the back of your mind as you look and make your choices on that “perfect place” for you.
1- Timing. I’ve had quite a few buyer clients come to me gung ho on building a new home, only to discover that they will have to wait months to have that new place, and their lease is up in 2. Sometimes the time just does not work. (If your heart is set on new, and you just don’t have the schedule that allows it, a “spec” or builder built home that is ready or close to ready may be the way to go. (Remember, there are nearly always options!)
2- Loans. Always, always, always talk to a lender before you start looking in earnest. There are so many types of loans and programs out there now, and knowing what you can actually afford (from a downpayment, closing costs, and monthly payment perspective) is incredibly important. Because really, what’s worse than falling in love with a home you later realize you can’t afford? Not much.
With new construction, your qualifications don’t actually change (if you can afford $450k, you can generally afford it in a new or a resale home.) but they are certainly structured differently. so talking to a good lender who can walk you through the process is an important step. (I have some fantastic lenders I can put you in touch with!)
New homes tend to cost a bit more (on average, approximately $87,000 more than a resale home, according to a study done by Redfin), and more importantly, that initial “sticker price” is seldom the final sales price. Want granite countertops like the model home? Extra. How about that gorgeous tile? Also extra. You get the idea…
Ultimately, it’s a personal decision. What are your deal makers and deal breakers? I’ve listed some pros and cons below to consider. Still on the fence? I can help. Just give me a call (or email)!
New Home Pros Resale Pros It’s all new! Often better construction techniques More neighborhood amenities More established neighborhood Designed for today’s buyer- garage/ driveway/open More mature landscaping Everything is still under warranty More character More efficient (usually) windows, hvac, etc. Usually more convenient location Lower maintenance Often lower property tax
New Home Cons Resale Cons
Usually smaller yard Almost always more maintenance Cookie cutter look and floorplan Less efficient systems Settlement and unknown future issues Smaller closets/ less storage Often less convenient location (all the “good ones” are taken.) More dated floor plans /finishes