The choice between new construction vs. existing home is a significant decision for any homebuyer. Both options have unique advantages and potential drawbacks and what’s right for one person might not be the best choice for another. As you consider your next move, it’s important to weigh the benefits and challenges of buying a new house vs. an existing property to determine what will suit your lifestyle, budget, and long-term goals.
Buying a New Construction Home vs. Existing Home
New construction homes offer many benefits that appeal to today’s homebuyers. It’s exciting to be a new home’s first owner and to know that everything in it is the latest and greatest!
Advantages of Buying a New Construction Home vs. an Existing Home
- Everything is Brand New: When you purchase a new build vs. an existing home, you’re getting a fresh start. Everything, from the roof to the appliances, is new which means you’ll get to enjoy the latest innovations and hopefully have fewer worries about repairs or replacements in the near future. This often translates to lower maintenance and repair costs.
- Up-to-Date Design:Built by the top builders in Texas, the newly built homes at planned communities (like Harvest by Hillwood) feature the latest concepts in architecture and interior design, such as open floor plans, and are created to maximize comfort and convenience.
- Customization Options: When you buy a ready-to-build house in a new home community, you’re involved in making many design decisions to create your dream home. You’ll review your builder’s curated design palettes which include options for cabinetry, countertops, flooring, wall colors, and more. You also have the opportunity to add upgrades to your home. Your options could be adding a bonus room, enhancing your outdoor living space, upgrading primary bathroom features, and more. This is different from a production home, where options are more limited.
- Modern Amenities: New construction homes often come equipped with the latest in home technology. For example, homes at Harvest are pre-wired for TV and Wi-Fi, and the community’s HOA dues include basic TV and internet service, with upgrade options available. These modern touches can make life easier and more enjoyable from day one.
- Energy Efficiency: Today’s new homes built with modern materials and energy-efficient designs can significantly reduce utility costs. From better insulation to advanced windows and energy-efficient appliances, these features help keep your house comfortable year-round while saving you money on utility bills.
- Warranty Coverage: New homes come with warranties that cover everything from structural elements to appliances, offering peace of mind that if something goes wrong, you’re covered. This significantly reduces unexpected maintenance costs.
- Builder Incentives: In some cases, lucrative builder incentives can greatly boost the affordability of a new build vs. an existing home. This is especially true when a builder has its own lending company. These incentives can include closing costs assistance, upgrade packages, interest rate buydowns, and more. Some builders may even offer a construction loan with favorable terms.
- No Remodeling Required: Unlike resale homes that often need updates or repairs, new construction homes are move-in ready, saving you the time, effort, and expense of remodeling. This is a significant factor when considering your overall budget.
- Prime Locations with Top Amenities: New home communities are often located in up-and-coming areas with top school districts, and they offer appealing amenities like resort-style pools, fitness centers, sports courts, parks, playgrounds, and much more, creating a vibrant and active lifestyle for residents.
Potential Drawbacks of New Construction Homes
- Construction Time: Building a new custom home can take anywhere from 6 to 12 months to be completed, depending on the design and builder schedules. However, move-in ready homes are available in some communities, offering the benefits of new construction without the wait.
- Can’t See It in Person Before You Buy: Unless you opt for a move-in ready home, you won’t be able to fully visualize your new house before making your initial purchase decision. Visiting model homes and reviewing the builder’s elevations and floor plans can help, but it’s not quite the same as walking through a finished property.
Buying an Existing Home
Existing homes, also known as resale homes, offer their own set of benefits, often appealing to buyers looking for established neighborhoods, mature landscaping, or the charm of older architecture.
Advantages of Buying an Existing Home vs. New Construction
- Established Neighborhoods: Older homes are often located in well-established neighborhoods that may offer a more extensive offering of services, shopping, and dining options. These areas can have a sense of history and convenience that some buyers find appealing.
- Mature Landscaping and Trees: Existing homes often come with mature trees and landscaping that can take years to establish in a new construction home. This adds immediate curb appeal and a sense of privacy.
- Timing: If no significant renovations are needed, you can move into an existing home much faster than waiting for a new construction house to be completed. The entire purchasing process is typically shorter.
- Less Decision-Making: With an existing home, what you see is what you get. There’s no need to make choices on paint colors, fixtures, or flooring if you’re happy with the home as it is, which can simplify the buying process.
Potential Drawbacks of Buying an Existing Home
- Higher Repair Costs: An older house typically requires more maintenance, and items like the roof, HVAC system, and appliances may need replacing sooner rather than later, increasing long-term costs.
- Dated Look and Layout: Existing homes may have outdated layouts, finishes, or features that don’t match your tastes or lifestyle needs, necessitating costly updates. These resale homes may not have the modern feel you are looking for.
- Lower Energy Efficiency: Older homes built decades ago often lack the energy-efficient features of new construction, leading to higher utility bills.
- Potential Hidden Problems: Issues like mold, termites, and decaying underground plumbing can be costly surprises in an older house. It’s important to factor potential maintenance into your budget.
- Low Inventory: In many sought-after neighborhoods, the inventory of available resale homes is limited, making it difficult to find a property that checks all your boxes. This can lead to more competition among buyers.
Frequently Asked Questions about New Construction vs. Existing Homes
Is it better to buy new construction or an existing home?
New construction homes offer modern amenities, energy efficiency, and a warranty, but they may have longer wait times. Existing homes (resale homes) offer mature landscaping in established neighborhoods, but they may require repairs or renovations. Other things to consider include inventory of existing homes and new construction, school district quality, builder incentives on new construction homes, and factors like your budget and priorities when you decide.
Is it easier to buy a new construction home?
This depends on a lot of factors such as inventory levels of new construction and existing homes in your desired areas. When the inventory of existing homes is very low, it can be difficult to buy an existing property. This happened in 2022 and 2023 when many real estate markets experienced a “3% lock-in” effect. With mortgage rates at historic lows, most homeowners with mortgages had refinanced, and they were reluctant to sell because this would mean exchanging a low interest rate for a higher one. However, when existing home inventories are low, it can be much easier to buy a new construction house because builders have more pricing flexibility and can offer better financing offers, particularly when they have their own financing companies.
Are new homes built better than older homes?
New homes are often built with better materials and energy-efficient features than older homes. However, an older house can have character, charm, and is in established neighborhoods. Ultimately, it’s a matter of personal preference.
Is buying a new build home a good investment?
Buying a new build house can be a good investment, depending on factors like the location, the reputation of the builder and community developer, and market conditions. Hillwood Communities always selects locations in good school districts that are primed for growth, so our new build homes tend to hold their value or appreciate.
Do new construction homes have good resale value?
New construction homes generally have good resale value. They offer modern amenities, energy efficiency, and warranties, which can attract buyers. Factors like location, builder’s reputation, and market conditions can also influence the resale value of the property.
Discover the Advantages of Harvest by Hillwood
Harvest offers a unique blend of small-town atmosphere and modern convenience. Offering a wide selection of move-in ready new construction homes and ready-to-build designs from top builders, you’re sure to find a perfect fit for your needs.
With our impressive array of resort-style amenities within easy reach, life here is exceptionally convenient and full. Plus, our community’s award-winning lifestyle program, which puts on more than 300 events, classes, and activities each year, means this is an environment where neighbors quickly become friends.
Whether you’re drawn to the beautiful homes, fantastic amenities, or vibrant community spirit, Harvest provides a lifestyle unlike any other. Explore your options and see why so many families call Harvest home.
Contact us today to learn more or come visit Harvest by Hillwood and find your new home online! Our new construction builders have available homes, and many are offering incentives, so now is a great time to buy!
