Buying a home can be overwhelming. Start by narrowing down your choices to either new construction or existing homes, using our pros and cons of each.

New Construction Advantages:

• Warranties and guarantees on appliances and construction may still apply, but read the fine print to make sure.
• Dangerous building materials, such as lead and asbestos, will likely not be a problem.
• Modern building materials should make for improved insulation.
• A new house will meet modern safety and building codes.
• You may be able to upgrade or customize such features as floor coverings or paint colors from the basic plans.
• Appliances will be up-to-date.
• Wiring for new technology or added security can be easily installed.
• New homes often have more closet and storage space.
• New subdivisions frequently feature recreational facilities.
• New homes don’t require as much maintenance.

New Construction Disadvantages:          

• • New subdivisions may have associated fees or assessments for new owners
  • Commutes to a job downtown may be longer or more expensive from a new development in the suburbs.
  • Rural land nearby could be targeted for industrial or business development.
  • Attractive landscaping can be costly.
  • Higher taxes could be required to bring water, gas or electrical services to a still under-populated area.
  • An interim move may be necessary if your home isn’t completed on schedule.
  • Until the entire area is finished, construction noise, dust and mud are a bother.
  • Resale could be difficult if the entire neighborhood is not yet complete -- most buyers interested in new subdivisions prefer new homes with all the available options.
  • New houses may be more expensive than existing homes because of higher labor and material costs and rising land values.
    
    Existing Homes Advantages:
  • Usually in an established neighborhood.
  • Frequently, older homes have period details and charming touches of character.
  • The landscaping may include desirable mature trees.
  • You may still get an updated kitchen and bathrooms in an older home that has been renovated.
  • Window coverings and appliances are often included with the home.
  • An older home may have better quality materials and workmanship that are too costly for newer homes.
  • Set Expectations: Everything is already built in older neighborhoods. You know who your neighbors are, what growth has taken place and the value of similar homes in the area.
  • Popular areas can help you recoup your remodeling costs: Improvements help the home, the neighborhood and the community.
  • More Negotiation Room: New construction has low margins, meaning little negotiation room. But an average seller is likely more willing to bargain. For example, a repair allowance will lower the cost of the home and provide needed cash to make repairs.
  • Comparable and Affordable: Existing homes compete with new construction so many go on the market just as fresh looking as their newer competitors.
  • No Surprise Costs: Except for unforeseen repairs, older home won't surprise you with extra costs. What you see is what you get with a resale home…not always the case with new construction.

  Existing Homes Disadvantages:

• Expensive repairs and updating may be required.
• It may be difficult to find or match the older building materials.
• Past renovations may not meet today’s building codes.
• Older homes are generally less energy efficient and so are more costly to heat and cool

Deciding between a new or resale home is a decision about your total costs, the amount of time you want to spend on improvements, the neighborhood, community and your wants and needs. Choose carefully