Which home buying option is best for you?
Do you prefer the charm of a home with history or the idea of a bright and shiny untouched single-family home in a new community? One of the first decisions you will make as a homebuyer is whether new construction or resale home is for you and your family!
Below we explore a few pros and cons of both options. Remember that you’ll want to hire an experienced real estate agent that has experience with both scenarios to help guide you in making an informed decision. The best part? Your real estate professional will be at no cost to you as a buyer.
No cost, only benefits!
New construction homes!
If you are in the custom home building option, you will be able to customize and personalize your home and select different upgrades prior to your home being built. This may increase your investment, however adding personalization may be worth it. The ability to choose your flooring, or something in your bathroom, an island in the kitchen, or additional lighting is a huge benefit if these items make a difference in your life and happiness. Adding these touches after construction has been completed can be costly and difficult.
Another advantage is that everything will be new. You won’t have to worry about maintenance or having to replace anything for a while from the roof to the HVAC. Builders also come with warranties, some up to 15 years.
New construction homes are typically built in communities that come with shared amenities. Some examples are a pool, fitness center, and playground. This is huge for new families and means that you will not have to build your own pool. Either way, a pool is a must in Florida!
With a resale home, you’ll have the ability to negotiate the price. Your real estate agent will research cost comparisons in the neighborhood for you. If a property is listed higher than what it’s worth, your agent will be able to negotiate for you to try and have the price lowered while staying within the market value parameters.
Resale homes also come with a few items that may not come with a new build. Items such as blinds, landscaping, built-in shelving, etc. Customizations like these would be added to your purchase price or negotiated in a new construction home.
Another advantage is time. With a resale home, you do not have to wait for construction to be completed. A new home to build from the ground will take around 5-6 months. You can also find some inventory builders and get something that is ready to close right away. With a resale home, you can typically close and move in between 30 – 45 days from an executed contract.
Which home choice is for you?
As we have discussed, there are many factors to consider when deciding what’s best for you in the homebuying process. From our experience and observations, your decision may depend on inventory as well. Right now, we are noticing many buyers gravitating towards new construction. With the pandemic, many resale homes have been taken off the market as sellers do not want showings in their homes while they are still occupying it. In the Tampa area, there are only 2 ½ months of inventory. That is a small supply of homes with high demand.
In today’s market, many resale homes are already under contract before a buyer can even submit an offer. With new construction, you do not run into this issue. Whichever option you choose, make sure to hire a highly skilled and experienced real estate agent to guide you through this process. Whether you’re leaning towards a resale home or new construction, a Realtor® will add value and benefit to the transaction process and save your financial costs in many aspects of the home purchasing experience.