Should I Buy New Construction or a Resale Home?

Should I buy a brand-new home, or am I better off buying a resale home?

There isn't one answer that's right for everybody. I like new construction for a lot of reasons, but I also see some real advantages to buying an established resale home. For me, one of the biggest deciding factors is location.

The Biggest Challenge With New Construction: Location

One of the problems with new construction is finding it in the location where you really want to live. Many of the most desirable and established areas of Jacksonville and Northeast Florida have already been built out.

If you can find the right new home in the right location, however, I think new construction can be a great choice.

You get a home where everything is new. The roof is new, the HVAC is new, the water heater is new, the appliances are new, and the home is built to today's building codes. You will also typically have warranties from the builder and manufacturers covering different parts of the home.

My hope when buying new construction is that you can get through the first eight or ten years without many major expenses other than the improvements you choose to make.

If You're Building, Build the Home You Want

If you're going to build a house, I believe you should try to build it the way you want it from the beginning.

Obviously, we all have a budget, and you don't need every upgrade the builder offers. But think carefully about the things that would be difficult or expensive to change later.

I'd rather see someone spend their money wisely during construction and be happy with the home from day one than spend the next several years tearing things out and changing them.

The purpose of buying your home is to enjoy living in it.

New Homes Can Offer Financing Incentives

Another advantage of new construction can be financing.

Builders sometimes offer incentives for using their preferred or affiliated lender. Depending on the builder and the market, that could mean help with closing costs, an interest-rate buydown, upgrades, or another financial incentive.

That doesn't automatically mean the builder's lender is your best choice. I still recommend comparing the complete loan package—including the rate, fees, closing costs, and monthly payment—before making a decision.

Remember, you're dealing with a business when you buy from a builder rather than an individual homeowner. That can have advantages, but it also means you need to understand exactly what you're agreeing to.

Don't Forget About HOA and CDD Fees

One expense buyers sometimes overlook with new construction in Northeast Florida is the combination of HOA and CDD fees.

An HOA or CDD isn't necessarily a bad thing. Those costs may help provide amenities, infrastructure, common-area maintenance, and other benefits to the community.

But they are still expenses.

When I'm helping someone compare two homes, I don't want them looking only at the purchase price. We need to look at the total cost of owning the home, including the mortgage, taxes, homeowners insurance, HOA fees, CDD assessments, and other recurring expenses.

A home that appears less expensive on paper may not necessarily have the lower monthly cost.

Why I Also Like Resale Homes

There are some definite advantages to buying an existing home.

One thing I like about a resale is that the home has already had time to show its personality. Whatever problems it's going to have may have already appeared, and many of them may have already been repaired or can be identified during an inspection.

Of course, you're also buying older components. The roof, HVAC, water heater, appliances, plumbing fixtures, and other items may be several years into their useful lives.

That's why I pay close attention to the age and condition of the major components when helping a buyer evaluate a resale home.

With a Resale, You Can See the Neighborhood You're Buying

This is an advantage that I think people sometimes overlook.

When you buy in an established neighborhood, you can see what the neighborhood has become.

You can see how the homes are maintained. You can see the landscaping, traffic patterns, amenities, surrounding development, and general character of the community.

Different buyers want different things. Some people want an active community with lots going on. Others prefer something quieter and more established.

With a resale neighborhood, much of that is already there for you to evaluate. With a brand-new development, you're sometimes buying into what the community is expected to become several years from now.

New Construction Can Be More Energy Efficient

Newer homes can also have an advantage when it comes to energy efficiency.

New windows, insulation, HVAC systems, appliances, and current construction standards can potentially make a newer home more efficient than an older property.

That doesn't mean every new home will have lower utility bills, but energy efficiency is something worth considering when comparing the long-term costs of two homes.

Yes, I Recommend Inspecting a Brand-New Home

A new home is still a home built by people, and mistakes can happen.

I recommend that buyers consider having an independent home inspection even when purchasing new construction. Depending on where you are in the construction process, there may also be opportunities for inspections at different stages of the build.

The builder has people looking after the builder's interests. I want my buyer to have professionals looking after theirs.

Should You Have Your Own Agent When Buying From a Builder?

I believe you should.

The salesperson in the model home represents the builder. There's nothing wrong with that—that's their job. But their responsibility is to sell homes for the builder.

Having your own buyer's agent gives you someone who can help you compare the builder's home with resale properties and other new-construction communities.

I don't want you buying a particular house simply because it's the house we're standing in. I want you buying it because, after looking at your options, it's the right house for you.

So, Which Would I Buy?

I don't think you should begin by saying, "I'm only buying new construction," or "I'll never buy a new home."

Start with what matters most.

Where do you want to live? What kind of home do you want? What monthly payment are you comfortable with? What neighborhood fits your lifestyle? And how long do you expect to live there?

If I can find you a brand-new home, in the location you want, with the features you want, at a payment you can comfortably afford, I like new construction.

But I would rather see you buy the right resale home in the right location than the wrong new home simply because everything is shiny and new.

At the end of the day, you're not just buying a house. You're buying the place where you're going to live your life.

Let's Compare Both Before You Decide

If you're considering buying a home in Jacksonville, Mandarin, St. Johns, St. Augustine, Nocatee, Fleming Island, the Beaches, or elsewhere in Northeast Florida, I'd be glad to help you compare new construction and resale homes.

I'm Michael Nobles with CrossView Realty, and my job isn't to convince you to buy one or the other. My job is to help you understand the advantages, disadvantages, and true costs so you can make a decision you'll be happy with for years to come.

Before you walk into a builder's model home or start touring resale homes, give me a call. Let's look at both and find the home that makes the most sense for you.