New Construction vs. Resale: Which Type of Home Is Best For You?

By Fabi R. Gomes | May 28th, 2019

Whether you choose to buy a new construction property or an existing home, it’s important to feel confident that you can live there happily for many years to come. What are factors to consider when making this decision?

New Construction

1.New Home Warranty

2. Choice of Finishes and Incentives

3. Homeowner Damage Not Covered

4. Dealing with Construction Around You

Resale Homes

1.Quicker Possession Date

2. Mature Trees and Landscaping (Typically)

3. Older Appliances and Systems

4. Renovation and Repair Costs

If you decide to buy a new construction home, you can relax knowing that your home is likely protected from impairments and failures. Depending on the issue and the home warranty provider, your investment is covered for up to 10 years. Every builder is different, and some may offer extra protection with their own warranties. Most cover material and workmanship on a new home for 1-2 years, with longer coverage on major structural elements.

Contrary to popular belief, warranties do not cover homeowner damage. If you damaged the wall when moving the sofa or your dog scratched the hardwood floors cruising around the house, the cost to repair this damage is the homeowner’s responsibility. However, if damage was caused by excessive wear and tear or due to a misused appliance, you may be able to claim the repairs.

Depending on the phase of construction when you enter your purchase contract on a new home, you potentially receive choice of lot, design, colors, flooring, landscaping. Resale homes are usually located in older communities, but they also come complete with landscaping, fencing, and sometimes upgrades such as a pool or deck at no additional cost to the buyer.

To encourage buyers to sign a purchase agreement on a new construction home, builders typically offer additional incentives like free upgrades, a reduction in the purchase price, paid closing costs and/or down payment assistance. New appliances and other furnishings may be included, as opposed to potentially older appliances and mechanical equipment (water heater, HVAC) that may convey with a resale home.

A new home offers more options, but once you’ve made your choices, it could be months for construction to be complete and the home ready for move-in. For an existing home, buyers are able to close on the property and move in much sooner. While a new development is favorable for your home’s value, keep in mind you may have to deal with dust, construction crews, and noise until the community is entirely built.

If you end up choosing a resale home, you may still want to change or add something—new flooring, a fresh coat of paint, or perhaps a drastic renovation—so make sure you account for these improvements in your overall budget.

Before you buy a home, study your options and find out whether a new or resale home best meets your needs. In either scenario, a CBHarper agent will be happy to assist you and guide you through the process.

Coldwell Banker D’Ann Harper, REALTORS®  can be reached at (210) 483-7581 or pr@cbharper.com and has been an affiliate of the Coldwell Banker franchise system for over 30 years.

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