The Great Debate- New Construction or Existing Home

Author: Bill Salvatore

The debate has always existed among home buyers- are you better off purchasing an existing home or opting for new construction. Unfortunately there is no right answer, the pros and cons of each change over time to align with Real Estate market conditions.

The balanced market might present the simplest choice as location and price weigh the heaviest in a buyer’s decision. Location will always play a part but in a Buyers Market the tipping point is often reached through builder incentives like included appliances, flooring upgrades or landscaping packages.

This is neither of those. For quite some time, the entire country has been engulfed in an overwhelming Seller’s Market. In addition, the price of building materials has increased and the availability of construction workers has diminished. The prices of both existing homes and new construction have soared, essentially removing price from the argument.

‘Availability’ has overtaken all other players in this particular drama. Existing inventory is historically low. New Construction time-line projections can be up to a year. I’ve never before known availability to be a factor in the Existing v.s. New Construction debate.

— Our New Construction Advantage Discount Can Save You Thousands $$$ —

So why am I currently leaning so heavily toward New Construction? The deciding factor right now, in this unique market, is Frustration or lack thereof. I can reassure the majority of home sellers that a satisfactory sale can be achieved quickly and without much fuss. I can’t, and to be honest no one can, say the same to home buyers.

Buying an existing home in the current market involves steep competition, multiple offers and frequent disappointment. Don’t get me wrong, it’s far from impossible, just make sure you’ve prepared yourself for the long haul.

Enter… New Construction. Multiple offers are rare. The price is the price. Competition challenging your bid is pretty much unheard of. A significant number of my clients have chosen New Construction recently, in spite of the wait time. Indeed at the moment, the time line might even be shorter han the search-and-offer process of purchasing an existing home.

Run through the tips below offered by Anita Ginsburg and RIS Median, for a few other considerations in the great ‘Existing vs New Construction’ debate.

By Anita Ginsburg

Are you in the market to buy a home? If so, then you may be trying to decide between new construction or purchasing an existing home. With your home being such an important purchase, you need to be sure you make the best choice for your family.

Here are some things you should consider when trying to determine whether new construction or an existing home is better for your family:

Your Budget
The biggest deciding factor for many individuals is their budget. Existing homes often come with a cheaper initial price tag; however, there may also be some incentives for purchasing a new construction home that can make them more affordable in the long run.

Whether or Not You Want to Make Repairs
Existing homes usually have repairs that need to be made. Things may break more often than you think, and fixing them requires time, energy and money. Some individuals are handy and don’t mind making a few repairs here and there, but others don’t want to deal with repairs and maintenance often associated with existing homes. Most new construction homes won’t need to have repairs made to them in the immediate future. If the home is well built, it may be years before any repairs are needed.

Authors Note: The majority of home builders, at least here in the Valley, offer a 1 year end-to-end warranty. If a major issue were to arise in a New Construction home, it would very likely be revealed within the first year.

Future Insurance Premiums
Many individuals don’t realize that new homes tend to have lower insurance premiums. This is because they’re seen as less of a risk to insurance companies than an existing home would be. It’s not uncommon for some homeowners to pay hundreds of dollars more in insurance premiums each year simply because they purchased an existing home instead of new construction.

The Importance of Energy Efficiency
Existing homes typically aren’t anywhere near as energy efficient as new construction homes, which can often lead to larger utility bills each month. There are some updates you can make to improve the energy efficiency of an existing home, but it will take additional investment and effort. New construction homes are usually built with the most current energy-efficient materials available, which can be very beneficial to the buyer and the environment.

If you’re in the market for a home, consider all of your options. This includes determining whether or not you should choose an existing home or new construction. Many choose a newly built home because they’re more energy efficient, have low insurance premiums, don’t require repairs and fit into the buyer’s budget. By keeping this all in mind, you can make the right decision when it comes to which type of home will meet your family’s needs.

Anita Ginsburg is a freelance writer from Denver, Colo. She studied at Colorado State University and now enjoys writing about health, business and family. A mother of two wonderful children, she loves traveling with her family whenever she isn’t writing. This article first appeared on RISMedia’s blog, Housecall. Reprinted with permission from RISMedia. ©2020. All rights reserved.

— Before You Make a Decision, Check Our New Construction Advantage Discount $$$ —