A new construction home is a property that is under construction or recently completed, and it’s waiting for its very first owner. If you purchase a new construction property, you’ll be the first person to live there, and that comes with some pros and cons.
An existing home is a home that the previous owner is listing on the market for sale. Depending on the home’s age, there could be just one or many owners prior to you—which also has pluses and minuses.
To help you decide whether you should buy a new construction property or a previously-owned home, we’ve put them head-to-head in a variety of categories. Check it out:
Cost
Winner: Existing Home
Let’s start with the big one. When you’re searching for a new home, one of your main concerns will be your budget. Almost always, new construction properties are more expensive than previously owned homes, especially if you’re going with a custom build.
In part, you can attribute the lower price of existing homes to negotiating power. A home seller is more likely to make you a deal than a custom home builder. The cost of building materials is also high right now, and remember that with a new construction home, you’re paying to get brand new everything—from the foundation to the finishes. You’re also getting the latest in architecture, design, energy efficiency, and home automation tech, and you’re also covered for repairs by warranties.
Maintenance, repair, and safety
Winner: New Construction
A major reason for a new construction home’s high price is that it’s brand new and under warranty. In terms of maintenance, repair, and safety, it makes it the winner over a previously owned home. When you buy a new construction house, it’s safe to assume that it won’t need major repairs for quite some time—and if it does, your warranty will usually cover the cost.
New construction properties are low maintenance, and when you move in, they’re the cleanest they’ll ever be. You can rest assured that the building materials and methods are safe and up to code, which is not necessarily the case when you purchase an older, previously owned property.
