At LC Home, we understand that when you are purchasing a new home, you want to feel confident that you are getting the best possible quality at the right price for that particular market. One of the most common questions we get is: “Should I buy a new construction home, or a resale home?” Assuming the goal is to ultimately purchase a home that you will e living in for several years to come, the answer can vary. Both types of homes have advantages and disadvantages to them. LC Homes has compiled a list of potential Pros and Cons for purchasing each type of home (new construction versus resale), and this is what we came up with:
Pro: Flexibility in choice and potential signing incentives
Regarding the flexibility in choice, when purchasing a new construction home, you have an advantage in selecting which particular lot you would like your home to be built in. So if there is a preference on which bedroom windows face east, west, north, or south, there is some choice in that. Would you like your new home to be built where your backyard opens up to a community playground? This can be done. Many people like to have control over such aspects for various reasons.
When mentioning incentives, some builders can offer you things such as free upgrades, lower down payments, no or reduced closing costs, free landscaping services, pre-installed appliances or other furnishings, or bonus cash to get you to sign a purchase agreement for a new construction home.
Pro: You receive a new home warranty
When you purchase a new construction home, you can sleep easy at night knowing that the new construction home is protected from any sort of damage or component failures for anywhere between 1 year and 10 years.
Con: Your new home warranty does not cover any homeowner damage
Just as it sounds, any damage that you, as the new homeowner, have caused to the structure (which can also include a misuse of an appliance that results in home damage) will not be covered under your new home warranty and you will have to pay such expenses on your own.
Con: There is often lots of ongoing construction in your neighborhood for the foreseeable future
As is the case with many new neighborhoods or communities that people move into, the construction and landscaping activities are ongoing, meaning an influx in dirt, dust, and noise surrounding your new home for a while.
Pro: Much faster acquisition and move-in date
Obviously, a resale home is already built and the homebuyer is able to close on the sale of the home and move-in at a much sooner date than a new construction home.
Pro: A lot of the time, there is no need for landscaping or planting new trees
Part of the charm of a resale home is that it already has an established feel due to its current landscaping or vegetation growth. This can save the homebuyer a large amount of money and time.
Con: There will likely be some renovation or repair costs
Whatever money the homebuyer has saved on landscaping needs, they will likely need to dump back into structural repair costs at some point in the need future. A resale home is much more likely to have leaks, previous damage, or other nondisclosed repairs that will need to be addressed. More than likely, a resale homebuyer will be inheriting old and often outdated appliances that are near the end of their usable lifespan. Items such as air conditioners, furnaces, washing machines, ovens, driers, refrigerators, and carpets or other floorings can be expensive and pricy.