A New Build or Resale? Which Home Works Best for You?

August 06, 2024

For those entering the homebuying market, one of the first decisions is whether to buy a new construction home or to buy a resale home. Both options have positives, so it often comes down to personal preference and whether a prospective home meets the needs of those who will live within its walls. The Rodney Carroll Team is well-versed in North Carolina’s real estate market including both the pros and cons of new construction versus resale homes.

Pros of Purchasing a New Construction Home:

Customization: The ability to customize a home is perhaps the biggest incentive to buy one being built from the ground up. Homeowners can choose everything from paint colors to flooring types to lighting (and more!). Because buyers can customize their new home throughout the building process, any immediate need for renovation is eliminated.
Modern Design: In short, homes built new include the most up-to-date everything. New home design teams pay close attention to current trends and are quick to inject their floor plans with the latest styles. Should any of those styles not appeal to a specific buyer, designers can tweak features to create a fit.
Energy Efficiency: In the past, energy-efficient upgrades were considered just that–an upgrade available for those willing to pay more. Today, energy efficiency is the norm. Appliances are built to conserve both water and electricity. Doors and windows are designed to keep inside temperatures pleasant and unaffected by weather fluctuations outside. Smart features allow homeowners to control lights, thermostats, and more at the touch of a button. Most new home builders consider these features as standard items, necessary to be competitive in today’s market.
Lower Maintenance: Because new homes are new, so are all the parts that comprise them. This means that there are few “surprises” upon moving in that may come with a big and unexpected price tag. For example, when buying a home in the winter, there is assurance that the air conditioning system will perform perfectly when hot days arrive. And when all those boxes are finally unpacked, there will be no doubt that the oven will function perfectly for that first big gathering.
Builder Warranties: Builders provide their buyers confidence by offering warranties on their products. Typically, new homes include a warranty that offers a variety of repairs should unexpected issues pop up. This may include problems with new appliances, a window that isn’t tracking properly, or a driveway that has a drainage issue.

While there are many reasons to steer toward a newly built home, resale inventory should not be dismissed.

Pros of Purchasing a Resale Home:

Affordability: Bottom line? The bottom line on resale homes is often more affordable than with newly built homes. In central North Carolina, where the real estate market continues to be competitive, resale homes provide a better value for many prospective buyers. Resale homes also offer more room for negotiation, especially if the seller is eager to relocate.

Availability: Unlike new builds, there are rarely unpredictable delays when purchasing a resale home. When placing an existing home on the market, sellers do so with the understanding that, when it sells, they will have to vacate the property shortly after. Instead of waiting months for construction to be completed, buyers can move into resale homes much more quickly.
Accessible Infrastructure: For homes that sit within established areas, accessibility to schools, shopping, or public transportation is simplified. Hospitals, recreational facilities, and wellness centers are easy to locate. Because major infrastructure is already established, prospective buyers can study a variety of areas more thoroughly and pick the location that works best for the priorities of their household.
Established Neighborhoods: There is nothing more beautiful than turning onto a quaint street canopied by mature trees. Resale homes are often nestled within lush landscaping, the pride of those who put down roots in years prior. Neighbors know each other and welcome new residents with open arms. The charm of an established neighborhood can easily evoke a feeling of nostalgia that is irresistible.
History: Resale homes often come with a story. Many resale homes boast unique features that new construction cannot replicate. Whether it's a mid-century modern, a craftsman, or a former tack house, resale homes offer a sense of character and history that appeals to buyers seeking a unique property.

As with the positives, there are also negatives on both sides of the homebuying fence, whether opting for new construction or resale.

Higher Costs: Newly built homes have higher buyer costs upfront. This is caused by hikes in building materials, labor, and land. On the flip side, resale homes have higher costs in maintenance. This is caused by older, outdated systems that need repair or replacement.
Limits: There are limits in both new and resale homes. For new builds, the biggest limit is location as buyers typically must shop where builders are currently developing. For resales, the biggest limit is customization as any updates will be governed by renovation budgets. Each of these limits often causes a need for compromise.
Delays: Move-in dates for resale homes may be pushed back if the home inspection reveals items that must be fixed prior to occupancy. Correcting wiring or plumbing issues can add weeks to that target date as well as stress for both the seller and buyer. For those building new, delays in the construction process are common–also extending that timeline to move-in. Weather, supply chain issues, or labor shortages are all factors that can delay occupancy in new construction.
Amenities: For those buying a newly built home, outdoor amenities may be minimal and up to the buyer to design once they’ve taken ownership. There will be no gardens or mature trees which may seem unwelcoming. For resale homes, indoor amenities may be lacking as design elements are dated and less appealing aesthetically.

With so many pros and cons between buying a newly built home versus buying a resale home, it is important to partner with a team that understands the local market. The Rodney Carroll Team is well-versed in central North Carolina’s competitive market with an eye on its most desirable neighborhoods, both new and established. This area is rich with diverse home options but finding the one that meets your specific needs can be challenging.

Reach out to the Rodney Carroll Team today to start the hunt for your next home!