Real Estate Guides and Resources

Deciding Between New Construction and Existing Homes

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.

 

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.

 

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.

 

 

 


Published on January 18, 2007