New Construction vs Resale

New construction offers the home buyer many advantages over a Resale home. Just as resale offers advantages over new construction. Understand these differences will help a home buyer to choose which way to go.

New construction is just what it says “new”. This home will have more warranties and guarantees than a resale. The home itself is covered by a builder one year warranty. This is basically a bumper to bumper, anything goes wrong gets fixed warranty. This does not include owner abuse or misuse. In addition, appliances and the HVAC units have their warranties. Some may be as long a 5 years. The roof has a 20 or even 30 year warranty. Flooring and carpets have their manufacturer warranties. The structure itself has a 2/10 warranty after the first year. So from the warranty point of view, new construction is hard to beat.

New construction can have some negatives also. Fencing, sprinkler systems, garage openers, microwave, refrigerators, window blinds, and full landscaping may not be included. All of these items can usually be added to the house as an option raising the sales price. The cost will generally be more than if you purchase the item after you buy the home. You also do not know how the neighboorhood will finish out.

Resale has a few things to throw at new construction. The current owner may have added items and features to the home that do not reflect in the sales price of the home. For example, a wood floor was added at the cost of $12,000. The seller can not just add the amount of the flooring to the price of the home. The wood floor may only realize an additional $3,000 in the price of the home. The house has also been lived in and the “kinks” have been worked out.

Resale presents its downside also. The home can be outdated. Appliances and features may still reflect the year the home was built. The current owner may not have keep up with repairs. Many items of the house may be reaching their end life; 20 years for a roof, 10 years for a water heater, 15-20 years for the HVAC. Carpets and flooring may also need attention. The yard and overall appearance of the home may need help.