As a homebuyer you are probably contemplating the decision of choosing between a new construction or existing home. Making this decision can seem difficult at first, but once you factor in your personal preferences, budget, and priorities the answer may become more clear. So we have broken down some factors every homebuyer should consider when deciding which option is right for them.
New Construction Homes
Cost: New construction homes can be more expensive upfront due to customization and modern features.
Location: New developments might be in growing areas with limited established infrastructure and services. However some new construction developments come with community amenities like parks, pools, gyms. etc.
Availability: Delays are possible due to weather, permitting, or unforeseen issues. Buying a new construction home requires more patience.
Customization: New construction homes often allow for more customization. You can choose floor plans, finishes, and features that suit your preferences.
Features: New homes tend to come with modern amenities and energy-efficient technologies, potentially reducing utility costs and maintenance.
Maintenance: Since everything is new, maintenance requirements are usually lower in the initial years. New construction homes typically come with warranties that cover structural issues and major systems, offering peace of mind to the homeowner.
Liens: The likelihood of a property lien on a new construction home is less likely than an existing home. However, the lot itself has its own history prior to construction. The land may have changed hands multiple times, so it can still have potential ownership issues. A builder friendly title company that is familiar with new construction transactions will be able to assist and lead the builder in right direction to extinguish the lien so you receive a clean deed of ownership.
Existing Homes
Cost: There might be room for negotiation on the price, especially if the home needs some updating.
Location: Existing homes are often situated in established neighborhoods with access to schools districts, shopping, amenities, and infrastructures.
Availability: You can move in sooner since the house is already built. This can be a big factor if you need to move quickly.
Customization: You may need to compromise on features and finishes. However this gives you the option to budget for upgrades.
Features: Older homes may have unique architectural features and a sense of history that new homes lack. Established homes usually also come with mature landscaping, providing shade and aesthetic appeal. Depending on the age, older homes might not be as energy-efficient as new homes.
Maintenance: Older homes might require more maintenance and potential renovations. A Home Warranty can be very beneficial for this reason.
Liens: An existing home has a higher risk of having a property lien than a new construction home. When someone has a lien placed against their property, it can prevent them from having a clear title when trying to sell. A reputable title company will be able to assist and lead the seller in right direction to extinguish the lien so you receive a clean deed of ownership.
How to Decide
Prioritize Your Needs: Consider what features and factors are most important to you and your family including how quickly you need to move.
Budget: Assess your budget not just for purchasing the home but also for potential renovations and maintenance costs.
Location: Think about the neighborhoods you prefer and the amenities you want and need.
Long-Term Plans: Consider how long you plan to stay in the home. New homes might have better resale value initially, but usually take longer to pay off.
Consult Professionals: Real estate agents, builders, and financial advisors can provide valuable insights.
In the end, the choice between a new construction home and an existing home depends on your lifestyle, preferences, budget, and long-term goals. Take your time to research, weigh the pros and cons, and consult a realtor to assist you in the process. Once you have made you decision on which type of home you are purchasing, our highly versed escrow experts at Willow Bend Title Company will be ready to assist you at our closing table.