One of the first steps of buying a home is deciding between purchasing a newly built home or an existing property. Each has pros and cons that need to be considered to make the best choice for you.
Newly Built Homes Pros:
- Brand new construction with active warranties
- Customizable floor plans
- Cost of upgraded features and appliances can be folded into the mortgage
- Green appliances for better energy efficiency
- Financing is available through the builder, making it easier to qualify for a mortgage
- Fewer maintenance costs associated with repairs or renovations
Newly Built Homes Cons:
- More expensive than resale properties
- Location may not be ideal (lack of schools and shopping opportunities, possible longer commute)
- Property values are unknown, and possibly more volatile
- Lacking in character – cookie-cutter design
- Ongoing construction in the neighborhood
- Greater Tax Burden
Existing Homes Pros:
- Typically less expensive, with more opportunity to negotiate price
- More desirable locations
- Known neighborhood dynamics
- Proximity to schools, shopping, and places of worship
- Older houses tend to have more character as compared to modern designs
- Property values can be determined before purchase
- Lower tax profile
Existing Homes Cons:
- Smaller inventory of acceptable properties
- May require extensive repairs and/or renovations
- Fewer amenities/older appliances
- Financing can be more difficult
- Competition from competing buyers
- Neighborhood may be in decline