The dream of owning a home is a significant milestone in many people's lives. When it comes to purchasing a property, one of the key choices you'll face is whether to consider new construction or opt for an existing home. Both options come with their own set of advantages and drawbacks. The primary factors that often come into play are cost and time.

Let's dive in to uncover the pros & cons of buying a new construction home vs existing home.

Pros of Buying a New Construction Home

1. Personalization: When purchasing a new construction home, Buyers have the opportunity to personalize various aspects such as fixtures, appliances, paint shades, finishes, and occasionally even the layout, if they get involved early enough in the building process. If you have a distinct vision for your ideal home this aspect can significantly influence your decision-making process. The freedom to select many details in your new home ensures that it truly becomes a reflection of your style and preferences.

2. Reduced Competition: Buyers who find the competitive bidding process for existing homes exhausting may find solace in opting for a new construction home. There is an ample supply of new construction homes in the suburbs surrounding the Portland Metro area. Choosing new construction provides a more straightforward and less competitive experience for Buyers, offering a sense of relief and certainty in the home-buying journey. Additionally, in today’s market, the builders may be offering incentives such as free upgrades or closing cost credits when financing through their preferred lender.

3. Minimal Maintenance: Newly constructed homes are designed to meet and exceed current building codes and regulations. This ensures that the structure is built with the highest standards of safety in mind. As a result, homeowners can anticipate a relatively hassle-free experience when it comes to repairs and maintenance. This allows homeowners to focus on settling into their new space and enjoying the comfort and convenience of a modern, up-to-date home.

4. Energy Efficiency Benefits: New homes are at the forefront of energy efficiency, boasting cutting-edge systems and materials that are specifically designed to minimize energy consumption. The incorporation of energy-efficient systems and materials not only benefits the environment but also translates into substantial cost savings for homeowners. By reducing energy consumption, new homes help keep utility bills in check.

Cons of Buying a New Construction House

1. Move-in Awaits: Like any construction endeavor, there is a possibility of encountering delays in the move-in process when purchasing a new construction home. Factors such as supply chain disruptions, adverse weather conditions, and labor shortages can contribute to the situation where Buyers may not be able to access the new home as originally anticipated. Buyers may face extended timelines for completion, which can be hard to plan around.

2. Lack of Established Community: Unlike established neighborhoods with a sense of community, new construction developments may take time to foster a strong community atmosphere. It can take years for amenities, parks, and social groups to fully develop, and this may impact the overall living experience for some Buyers.

3. Higher Home Prices: Newly built houses tend to be priced on the high end of the market range within their area. There is value in everything being brand new but also keep in mind that things like window coverings, automatic garage door openers, and landscaping may be extra costs beyond the original price. The increased price tag can be attributed to the inclusion of modern features and the overall development costs for the entire neighborhood.

Pros of Buying an Existing House

1. Quick Move-in: Buying an existing home typically allows for immediate occupancy when desired. This is particularly advantageous for time-sensitive relocations, such as starting a new job or upgrading to a larger home to align timing with the start of the school year. You will experience the almost instant satisfaction of moving into a readily available home and comfortably adjusting to it, while also having ample time to save up for any desired renovations or modifications.

2. Ability to Negotiate: Buying an existing home can offer the advantage of negotiating power. Sellers of these homes may be willing to make a deal if they don’t receive an offer after a reasonable amount of time on the market. With existing homes, you have the option to negotiate throughout the offer, inspection, and appraisal processes.

3. Better Location: Opting to purchase a pre-existing home grants you a broader spectrum of choices when it comes to location. This means you have the freedom to explore and search for properties in any area you desire to reside in. The flexibility to explore various neighborhoods provides you with the opportunity to find a home that aligns with your specific preferences and needs, while also getting the benefit of a more established neighborhood.

4. Mature Landscaping on a Bigger Lot: If having a spacious yard with well-established landscaping is an important feature for you, then an existing home is more likely to meet your expectations compared to a newly constructed property. The surroundings of existing homes have had more time to develop and flourish, resulting in a fully-grown landscape. If you prioritize having lush gardens, mature trees, and a well-established outdoor environment, you are more likely to find what you desire in an existing home, rather than a newly built one.

Cons of Buying an Existing House

1. Finding the Right Option: Entering the housing market can be a stressful experience. The current demand for existing homes is extremely high because inventory is quite low. The good homes may get multiple offers and could quickly be under contract within a few days of hitting the market. This could make the search for your ideal home a challenging endeavor.

2. Repairs and Remodeling Needed: If you decide to buy an existing home, it is highly probable that something will require maintenance or updating. Regular upkeep is essential to protect the longevity and value of a home and unexpected expenses could arise after purchasing the home. Each homeowner lives differently in a house and has unique expectations of how to care for it. You may be more detail-oriented focusing on preventative maintenance or place more importance on cosmetic updates compared to a prior owner, resulting in some extra work and costs upon moving in.

3. Lower Energy Efficiency: Older homes tend to fall behind in terms of energy efficiency compared to newer and more sustainable homes. This can result in higher energy expenses for homeowners. The main reason for this discrepancy lies in the older construction practices and materials used in existing homes. It's important to assess the potential energy inefficiencies and take proactive measures to improve the energy performance over time with newer windows, roof materials, venting systems, and appliances.

The Verdict: Which option is truly cheaper?

Determining which option is genuinely cheaper when deciding to buy a new construction vs resale home, depends on many factors. While buying a newly constructed home may come with higher upfront costs, it provides the opportunity to move in with all systems functioning and under warranty. On the other hand, buying an existing home may involve additional expenses for renovations or repairs but it offers the advantage of immediate occupancy and potential negotiation opportunities. Ultimately, the answer to this question lies in your personal circumstances and priorities. Carefully assess your budget, timeline, desired level of customization, and willingness to undertake renovation projects. By conducting thorough research, seeking professional advice, and weighing all the pros and cons, you can make an informed decision that aligns with your financial goals and lifestyle aspirations.

Having a hard time deciding? We got you. Whether you choose to purchase a newly constructed home or an existing home, we can assist you. Feel free to contact us at anytime! Our professional and experienced team can help you in navigating this ever-changing real estate market.