Pros and Cons: New Construction vs. Resale

Owning a home is likely more difficult now than ever before. With the slim inventory of homes for sale, homes are FLYING off the market. From the rise in home prices to competitive bidding wars, homeowners have to wonder: is it worth just buying new construction?

“This question is tough to answer these days. The inventory is slim and prices have gone up on both sides. For most buyers, timeline is the key decision driver when choosing between new construction or an existing home,” shares Davidson Realty agent Shelley Nemethy.

Pros of Building New Construction 

• Newness – When buying new construction, you’ll be the first to call this house HOME! Buyers buying new homes enjoy the peace of mind of having a warranty through the builder and fewer renovations.
• Design – New construction homes also often feature more modern architecture and floorplans. You’ll find more open floor plans, additional bathrooms and spaces that can adapt to the needs of your family. New homes will leave you and your family only to make minor modifications, if any, to feel at home.

Cons of Building New Construction

• Supply Shortages – Due to the Covid pandemic, many industries have experienced limited supply, delays, and labor restrictions. This has trickled down to impact home building as the cost of lumber, metal and other supplies have been affected by the pandemic. In turn, the decreased supply has increased cost which of course is passed along to the homebuyer.
• Longer Timeline – With a new home build, homebuyers usually have to wait months to get into a new home. With the current shortage of supplies, there is an even greater risk of delays. Some homebuilders limit the number of lots available for sale in an effort to keep on schedule. “If you have time to build, you have more time to save money for closing costs,” shares Davidson Realty agent, Terri Apodaca.

Pros of Buying Resale

• Shorter Timeline – When buying a resale, the closing day is often negotiated in the offer. Typically, new home owners gain possession in one to two months after their offer is accepted.
• Character – Existing homes generally have more traditional layouts and features that elevate the home. These charming touches provide a unique dimension to an existing home.
• Location – “Older homes are often in areas more convenient to metro areas and in more established neighborhoods with more development surrounding. Yards are typically more spacious with mature landscaping. Buyers also won’t have to worry about the congestion of construction taking place,” shares Apodaca.

Cons of Buying Resale

• Competitive Market – With so few homes for sale, most homes are receiving multiple offers. Prospective home buyers have to be patient, persistent, and ready to make their best offer quickly to achieve their dream of owning a home.
• Increasing Home Prices – As a side effect of the low supply and high demand for homes, home prices have skyrocketed making it harder to afford a home that would normally be in reach.
• Home Improvements – Often buying a resale comes with a few compromises. Upgrades, remodels, and projects could be on your to do list after closing to make your new home the home of your dreams.

If you are interested in buying or selling in Northeast Florida, trust the real estate experts at Davidson Realty. Davidson Realty has more than 30 years of experience and has built strong relationships with many of Northeast Florida’s leading home builders. This advantage along with their extensive experience buying and selling resale homes, make them the perfect partners to help you navigate the real estate market. For more information, contact Davidson Realty at (904) 940-5000.