Should You Buy an Existing Home or New Construction?

Finding the right home to purchase today is one of the biggest challenges for potential buyers. With so few homes for sale and construction of newly built homes ramping up, you may be wondering if you should consider new construction in your search process. It’s a great question to ask, and one to look at from the pros and cons of what it means to buy a new home versus an existing one. Here are a few things to consider when making the best decision for your family.

New Construction  

When buying a new home, you can often choose more energy-efficient options. New appliances, new windows, a new roof, etc. These can all help lower your energy costs, which can add up to significant savings over time. With programs like ENERGY STAR, your home also helps protect the environment and reduces your carbon footprint.

Lower maintenance that comes with a newer home is another great benefit. When you have a new home, you likely won’t have as many little repairs to tackle, like leaky faucets, shutters to paint, and other odd jobs around the house. With new construction, you will also have warranty options that cover portions of your investment for the first few years, and in Minnesota, parts of your new home may have warranty coverage for up to 10 years.

Another solid benefit to new construction is customization. Do you want a mudroom, stainless steel appliances, granite counter tops, hardwood floors, an office, or a multipurpose room to homeschool your children or possibly setup a second office? These items can be customized to your specific needs during the design phase. With an existing home, you’re buying something that is already completed, so if you want to make changes, you may need to hire a contractor to help get your home ready for your family.

Existing Home

When buying an existing home, you may be able to negotiate with the current homeowner on price, which is something you generally do not get to do with a builder. Builders know their material and construction costs, and they have a price set for the model you are buying. So, if you want an opportunity to negotiate, then maybe an existing home will be best. Although given current market conditions, your expectations surrounding negotiation should be tempered at best.

For many families, having an established neighborhood is also important. Some buyers like to know the neighbors, if it’s family-friendly, and traffic patterns before making a commitment. When you buy new construction, you won’t have a full view of some of those details until the home sites around you are sold.

Finally, timing comes into play. With an existing home, you can move in based on the timeline you agree to with the sellers. With new construction, you need to wait for the house to be built. Depending on the time of the year you’re buying and the region you’re building in, the weather can also be a factor in the time frame. This is something really important to keep in mind, especially if you need to move sooner rather than later. Over the past few months with COVID-19 and social distancing regulations, some new construction has been delayed.

Bottom Line

Whether you want to buy a newly built home or one that is already established, both are great options. They each have their pros and cons, and every family will have different circumstances driving their decision. If you have questions and want to know more about the options in the Twin Cities, let’s connect so you can feel confident making an informed decision about your next home.