Home Builder Value Homes

Homebuyers have the choice of purchasing a resale home or new construction. In this blog we review key points on both new construction and resale homes
to determine which offers the best value.

New Construction Homes

If you're in the market to buy a home, you have a choice of building or buying a new construction home, or a resale home. There are many advantages to buying new construction over resale. Here is a short list of benefits associated with new construction.

  1. New construction homes are new. New materials are not compromised in any way by age or wear and tear, and all materials are made to today's environmental standards.
  2. If you build your new home with Holiday Builders, you're able to select the design elements to personalize your home. For example, you may choose the style and colors of your cabinets, countertops and flooring - all foundations of a home design.
  3. New homes have the newest AC systems and new energy-star rated appliances. 
  4. New homes have new and properly sealed windows and doors, making the most of your new energy efficient heating and cooling system by not allowing air to escape. 
  5. New homes are less expensive to insure. There is less risk of something going wrong with a new home.
  6. Holiday Builders homes come with a two-year non-transferable warranty so if anything goes wrong, you're covered. 

Resale Homes

Resale homes are used homes. If you have an affection for historic properties, a resale home is the way to go. If you love a particular neighborhood, a resale home may be perfect. If not, be sure to consider this short list of disadvantages of purchasing a resale home.

  1. Resale homes are used homes. Depending on the age of the home, there is going to be some wear and tear. 
  2. When you purchase a resale home, you might find one perfect in every way. But it's like that you will want or need to replace or update flooring, or another design or structural element of the home.
  3. A resale home over 10 years old will not have AC or appliances that meet the same energy efficiency standards of new homes. That means you're spending more on utilities.
  4. Seals on doors and windows need to be maintained. An older home that hasn't been properly maintained will lose air from doors and windows contributing to increased energy costs.
  5. Insurance companies charge higher rates to insure an older resale home because the risk of damage and need for repairs increases. 
  6. Resale homes rarely come with any kind of warranty. It isn't unheard of, but it is rare. 

Influencing Factors in Today's Real Estate Market

A new factor in the discussion of new construction vs resale homes is today's real estate market. Extremely low inventory in the resale home market has caused prices to spike. The demand for homes is so high that desirable listings end up with multiple offers resulting in bidding wars. In this case, homes may sell for thousands of dollars over the asking price. If there is a mortgage involved, the home may not appraise leaving the buyer to try and renegotiate the contract price or pay the difference in cash. Meanwhile in the new construction world, builders are combatting the perfect storm. The demand for housing is strong and there are qualified buyers in line. However, delays in materials and labor have put a strain on building in a desirable time frame which adds expense for the builder.