7 Differences Between New Build and Resale Homes
What is the difference?
- Buyers usually can move into a resale home within 30 to 60 days with an accepted contract. New builds generally take longer (6 months to 1 year) to move into unless it is a spec home and it’s move in ready.
- Dates and time frames are out of the builder’s control. Acts of Nature, Government, or Third Party Vendor delays tend to push the closing/finish dates out. Resales do not tend to have these issues.
- New builds you can “pick” your finishes and customize to your tastes. Generally, resale you are stuck with the previous owner’s choices; unless, you go about a renovation or demolition process.
- Buyers may have a choice of the lot in a new build. Depending on where the builder is in the construction phase, the buyer may have the pick of lots. However, as the builder finishes phases and finishes the subdivision; those prime lots are harder to come by.
- You will pay what the market will bear for the price of a resale home. Whereas with a new build, the buyers are paying for the actual cost of the home. The difference is that there is a point in resale that you will get a maximum price and you cannot go over it unless you pay for cash. With new builds, you are paying for the costs of building and the finishes. Sometimes the new build costs can run higher than the subdivision will be able to sustain.
- In Central Ohio, school district is usually important for buyers and the already developed areas of Central Ohio don’t have as many new build subdivisions available. Unless buyers purchase a parcel of land (if available and if suitable for building) or demolish an already existing home, resale may be your only choice for certain schools.
- New builds will be up to industry code along with having energy efficiency. Resale homes necessitate that you will have to put money into bringing the home up to date with today’s building standards.
A new build is not necessarily better than a resale home and vise a versa. Everything is relative to the buyer – their preferences. It is a matter of understanding the differences and the effects they will have on the buyer’s life and goals. Understanding these differences is necessary in order to be an educated buyer when purchasing a new home, either new build or resale.