New Construction or an Existing Home: What's Right for You?

Today's homebuyers are in a difficult situation. Simply put, there are not enough houses available.

In September, Austin had 3723 active listings, which equates to only 1.1 months of home inventory. This is significantly less than the six months typically required to achieve a sustainable supply-demand balance that is considered a healthy market.

Given the limited quantity of available properties, you may need to broaden your search to include both new construction and resale homes if you're a buyer in today's market. However, comparing these two options might be difficult.

Let's take a closer look at some of the aspects to consider when deciding whether to build a new home or purchase an existing one.?

TIMEFRAME

New Construction: If you choose new construction, you might be shocked at how long it takes to obtain the keys to your new home. Many home builders are currently facing unique obstacles as a result of the COVID-19 pandemic, including rising costs, labor and material shortages, and shipment delays. While building a home used to take about five to six months, many builders are now estimating construction timeframes of a year or more.

Existing Home: Are you're in a hurry to settle into your new home? You might want to consider looking for an existing property. In most cases when you buy a resale home you will have the option to move in right after closing.?The average time to close on a house purchase is 35?days; however, this might vary depending on the loan type and market activity.

LOCATION

New Construction: With a brand-new home, you're more likely to choose an area on the outskirts of town that is still being developed.?This could result in a longer commute and the need for construction to continue in the community?for some time.

Existing Home: A pre-owned property is more likely to be in a neighborhood with mature trees, established schools, and a strong sense of community. As a result, the trajectory of the neighborhood may be more predictable than that of an up-and-coming location.

MAINTENANCE

New Construction: Everything is completely fresh and?new when you build a house. As a result, you should expect less required maintenance and repairs in the first few years. According to a 2019 survey, millennials' homebuying regrets are frequently due to maintenance issues rather than other worries.?If you'd rather spend your weekends exploring your new area than replacing a broken faucet, a turnkey build may be the way to go.

Existing Home: You may come to regret buying an older home if it costs you a lot of money in unanticipated maintenance and repairs, no matter how good of a deal you got when you bought it. Home improvements have been more expensive in recent years, according to HomeAdvisor's annual True Cost survey. For example, installing a new HVAC system could cost you $5,371 on average. And you can expect to pay nearly double that amount ($9,375) for a new roof.

ENVIRONMENTAL IMPACT

New Construction: The need for energy-efficient housing is increasing, and many builders are rising to the occasion. The Residential Energy Services Network assigned a HERS (Home Energy Rating System) Index Rating to about one-quarter of all homes completed in 2020. A HERS rating is an index score that compares a newly constructed home to those that were common in 2006. The higher the home's energy efficiency, the lower its score.

Existing Home: Reduce, reuse, and recycle are, of course, fundamental tenants of sustainable living. A resale home also has a lesser carbon footprint because it was previously owned. According to studies, repairing or retrofitting an older home is frequently more environmentally friendly than building one from the ground up.?

DESIGN

New Construction: When you move into a new home, you can be sure that everything will be shining and wonderful. Builders frequently emphasize visual features and adhere to current design trends. Newly constructed homes, for example, are more likely to have an open floor plan, a central kitchen island, and 9+ foot ceilings, all of which are desirable features for many modern buyers. They're also not likely to have carpet on the main level or laminate countertops, both of which have fallen out of favor with the general public.

Existing Home: An older home with traditional styling and character can be highly sought after in some of the most prized communities. On the other hand,?an existing property is?more likely to appear outdated if the previous owners have failed to?engage?in updates that reflect current design trends.

WHICHEVER PATH YOU CHOOSE, WE CAN HELP

There is no one-size-fits-all answer when it comes to deciding between a new build and an existing home. There are a lot of things to think about, and you may have to make some sacrifices along the road. However, the home-buying process does not have to be stressful.

We're here to assist you. Our homebuyer advice and expertise are frequently provided at no cost to you! This is because the seller or builder of the home may pay us a commission at closing.

Occasionally?homebuyers make the mistake of going to a builder's sales office or even buying a home without consulting a real estate agent. But keep in mind that the builder's agent or "sales consultant" is looking out for the builder's interests, not yours.

We are familiar with both new construction and resale house options in our area, and we can assist you in making an informed decision, negotiating a fair price, and avoiding costly mistakes. Give us a call now to set up a no-cost, no-obligation consultation, and let's get started on finding your next home!