Pros & Cons of Purchasing New Construction VS Resale

/
photo cred: Alexander Andrews

When it comes to purchasing a home, one of the primary decisions you'll face is whether to opt for a new construction property or a resale home. Both options have their merits, but understanding the pros and cons can help you make an informed choice that aligns with your needs, preferences and goals. Let’s explore some of the advantages and disadvantages of buying a new construction home versus a resale home.

Pros of Buying a New Construction Home:

  • Customization and Modern Features: One of the most significant advantages of buying a new construction home is the ability to customize it to suit your preferences. From choosing floor plans and finishes to selecting appliances and fixtures, you have greater control over the design process. Additionally, new construction homes often come equipped with both a modern aesthetic and modern features and technologies, such as energy-efficient appliances and smart home integration, which can enhance your overall living experience. 

  • Reduced Maintenance: Newly constructed homes are typically built with modern materials and construction techniques, meaning they tend to require less maintenance in the early years. With updated electrical wiring, plumbing, and HVAC systems, you can expect fewer unexpected repair costs compared to an older resale home. Additionally, new construction homes usually come with warranties that cover structural defects and major systems, which can provide peace of mind.

  • Energy Efficiency: Advancements in building standards and technologies have made new construction homes more energy-efficient. These homes often incorporate improved insulation, high-performance windows, and energy-efficient appliances. Consequently, you can enjoy lower utility bills and contribute to a greener environment by reducing your carbon footprint.

Cons of Buying a New Construction Home:

  • Higher Price Tag: New construction homes tend to come with a premium price tag. Builders account for the costs of land acquisition, construction materials, labor, and other expenses, which can drive up the overall price. If budget constraints are a concern, a new construction home may not be the most financially viable option.

  • Incomplete Amenities and Infrastructure: When buying a new construction home, it's important to consider the status of the surrounding amenities and infrastructure. In some cases, the development of parks, schools, shopping centers, and other facilities may be incomplete, leading to inconveniences in the short term. You may have to wait for the neighborhood to fully mature before enjoying all the amenities you desire.

Pros of Buying a Resale Home:

  • Established Neighborhood: Resale homes are often located in established neighborhoods with well-developed amenities, such as schools, parks, shopping centers, and recreational facilities. Living in a mature neighborhood can provide a rich living experience with a variety of social activities and services.

  • Proven Track Record: Established areas may offer not only a greater sense of community but they also have a proven track record in terms of property value appreciation. Long standing neighborhoods often have very trackable home value analytics and trackable sales data available through your real estate advisor. Knowing a neighborhoods past performance may offer confidence in future home value performance.

  • Negotiation Opportunities: Unlike new construction homes that tend to offer builder-fixed prices, resale homes may allow room for negotiation, or an opportunity to meet the seller’s needs in a more unique way. Depending on the local housing market conditions and the seller's motivation, you may be able to negotiate on items like; list price, inspection items, and seller-concessions, potentially saving money or negotiating additional features or repairs to be included in the sale.

Cons of Buying a Resale Home:

  • Maintenance and Renovation Needs: Resale homes may require more immediate maintenance and renovations compared to new construction homes. Older systems and outdated features may need upgrading, which can lead to additional costs. It's crucial to conduct a thorough inspection and factor in potential repair expenses when evaluating a resale home.

  • Limited Customization Options: Unlike new construction homes, resale properties offer limited opportunities for customization. You may need to compromise on certain design aspects and accept the existing layout and finishes. If personalization and customization are high on your priority list, a resale home may not fully meet your expectations.

The decision between buying a new construction home and a resale home is deeply personal, and most often comes back to evaluating you and/or your family's lifestyle, preferences on location, financing priorities, as well as your short and long term goals.

Regardless of your choice to purchase new construction or resale, or if you would like to continue exploring which is a good fit for you, we are prepared with extensive knowledge in the Denver Metro market to help you achieve exactly what you are looking for in a home.