Deciding Between New Construction and Existing Homes

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.