New Home vs. Resale Home

A lot of buyers are contemplating whether to buy a new or a resale home. While there is no advice that would work for everybody, you should be aware of general advantages of each type of home.

New home advantages

Obviously it is brand new, so it requires little or no renovation
If you work on a project early on, you have flexibility in changing floor plans or finished materials
You receive a warranty
New home are more energy savvy than resale ones

New home disadvantages

The cost is up to 20% higher than of a resale homes
When you move to the neighborhood infrastructure such as shops, schools, and hospitals is still not developed
For a year you will live with the sound of trucks, dust in the year and no developed landscape
You don’t know who you neighbors will be
Even though you have a warranty it doesn’t cover everything and is valid for a limited amount of time.
If you decide to sell your home before the subdivision is sold you will be competing with the builder which will drive your price down

Resale home advantages

Lower price
Proximity to major amenities such as schools, transportation, and shopping plazas
Mature landscape
Predictable resale value

Resale home disadvantages

Can require remodeling
No flexibility about floor plans
Less energy savvy than new homes

These guidelines are pretty general and every situation will have its specifics that can be best explained by a Realtor®. Consider working with one even if you are planning to buy a new home – often you can buy new home cheaper through a Realtor®. If you have any questions contact me for the details or go back