Resale Home or Pre-Construction: Which is Right For You?
Things To Consider When Deciding Between Buying Resale Or Pre-Construction
When it comes to purchasing your next home, there's no right or wrong way to go about it. Many people prefer to shop around on the real estate listings, searching for a resale home that matches their personality and lifestyle. Others prefer to start from scratch and build a home to suit their liking.
Here at Nashville Real Estate Help, we understand that the choice is a big one! Such a major purchase requires a lot of consideration and only you can determine what will be best for you. However, this article will provide a bit of information to help clarify which option may be right for you!
Buying An Existing Home
When you purchase an existing home, it's best to let the professionals lend a helping hand. A qualified real estate agent will be able to streamline the process by finding property options that match your vision, guiding negotiations, and helping you through the mountain of paperwork that comes with purchasing a home.
Here's a few advantages (and a few disadvantages) of buying an existing home:
Cost and Schedule
Resale homes are typically less expensive than newly constructed homes. According to Realtor.com, you'll typically pay 30% more for a new construction home than an existing home.
When choosing an existing home, you have the freedom to move in much sooner than if you were to build.
Resale homes offer flexibility when it comes to closing dates; whereas new builds often come with stressful deadlines and time frames to meet, causing more stress.
Convenience Vs. Customization
Resale homes come with the added convenience of an already established community.
You have the benefit of choosing your neighborhood. If you want to be close to a certain school or your job, you have that flexibility.
You may need to compromise on some aspects of your home. Resale homes don't offer the luxury of customizing your home like a new build does.
Buying A New Construction Home
When you build a home, you have the unique opportunity to design it exactly the way you want. From the layout of each room to the finishes on your countertops, you get to choose it all! If you're looking for a home that's completely tailored to your needs and wants, this is the way to go.
Just like purchasing a resale home, there are also a few disadvantages to building a home; there's more to a new construction home than just the luxury of picking out your floor plan and features. Let's take a look at some of the pros and cons to purchasing a pre-construction home:
- As a buyer, you have complete control over the details of your home. From adding additional bedrooms to bringing in high-end appliances for the kitchen, you have the final say.
- Every detail needs to be planned out on a new construction home and this can be overwhelming.
- Be sure to have the right professionals by your side to guide you through the process.
Better For The Environment
- Older homes can be a risk as you may face costly maintenance or repairs shortly after closing the deal. Pre-construction homes won't have that risk factor.
- You can opt for more sustainable appliances and fixtures in your brand new home.
- Green appliances and Energy Star rated appliances, more efficient toilets, plumbing fixtures, and electrical fixtures are just some of the eco-friendly features you can request for your new home.
- While the upfront costs of building may be higher, it could be easier to recoup your investment when it comes time to sell and move on.
- Building a home allows you to take advantage of the current market conditions and rising home values.
- The National Association of Home Builders has found a 41% increase in interest in newly built homes when speaking with prospective buyers.
Closing Questions to Ask Yourself
When trying to decide whether you're best suited to a resale home or a pre-constructed home, here are a few questions to ask yourself:
Are you particular about the purchase price?
- If you're looking to spend a little less upfront, resale might be the way to go.
- Hoping to avoid costly renovations or repairs in the future? You may be leaning towards a new construction home.
Have you factored in other costs associated with your home purchase?
- Consider the costs of appliances, landscaping, and other extras that come with a home.
- When looking at a new construction home, be sure to factor in the lot costs as well as the cost of the house.
- When budgeting for an existing home, be sure to factor in maintenance and repair costs.
Do you love the character of old homes? Or the clean lines of a new home?
- Resale homes are often full of character and charm and are easy to fall in love with. They can also seem like they need a lot of work and TLC.
- New homes can seem new and fresh to some people while others see them as a little more cold and needing to be broken in.
Are you flexible about your move-in date?
- Construction timelines vary, so if you're looking for an immediate move-in date, a pre-construction home might not be the best fit.
- You may have to negotiate a closing date with the seller of a pre-existing home; it could be immediate and it could be a few months before you're ready to move in.
The Bottom Line
When it comes time to make the decision of buying a pre-construction home, be sure to weigh all of your options and ask yourself the tough questions. By being informed, you'll be able to make the best decision for you and your family. Keep in mind that there are no right or wrong answers and every buyer has a unique perspective. Buyers may start off looking at the real estate listings, only to decide later that they'd rather build or vice versa. Nashville Real Estate Help is here to ensure your experience goes as smoothly as possible!