New construction or existing home? Which one is better for you? Continue reading to figure out which option is best for you.
Cost is a big thing to consider when deciding if new construction or an existing home is for you. Everyone has their own budgets so each situation is going to be different. One thing to keep in mind is that with new construction, their advertised prices aren’t necessarily what you’re actually going to pay. These are starting prices that can fluctuate based on lot choice, revised floor plans, or any additional upgrades in finishes. However, with an existing home, what you see is what you get. The price will include the acreage, the house in its current condition and there’s minimal guesswork in terms of price and actually room to negotiate the price. One thing to keep in mind is the cost of any renovations or repairs that may need to be done to the property. This leads us to our next point…
Repairs and Renovations
New construction will require few if any repairs for several years. With most new construction these items would most likely be covered under warranty and would not require additional money or work from you. On the flip side, with an existing home, all repairs and renovations fall straight on you. Some may be obvious when first purchasing the property, and others may pop up along the duration of you living at the property. This could be anything as simple as some paint to something more serious such as the need for a new furnace.
Pregnant and expecting in a few months and trying to find the home with the perfect nursery to move into before your bundle of joy enters the world? Maybe you’re planning ahead and there’s a location you’re set on and you’re willing to wait. An existing home can have a faster turn around time, but are there any repairs or renovations that need to be made before you move in full time? New construction will be move-in ready for sure but could take a year or more from the initial planning phase until you’re actually getting the keys to your new home.
Additional Costs of Ownership
Energy efficiency is something that can affect your monthly utility bill. New construction is generally more energy-efficient than existing homes; newer building material and practices, better insulation, and even new technology to help maximize efficiencies. Yes, it is possible to implement these measures into an existing home, but that is going to require additional cost in repairs and renovations on top of the purchase price for your home.HOA (homeowners’ association) fees can affect both new construction and possibly existing homes depending on if they are located in a housing development. HOA fees differ in costs from $100 annually to $300+ per month and anywhere in between. Also, look into what the HOA fees cover. Some cover lawn mowing or snow removal, some may include trash, or if applicable, use of the community clubhouse and amenities. Home insurance will differ between new construction and existing homes. As a general rule of thumb, new construction will have a lower home insurance price for a comparable home because of the above mentioned new construction materials and building methods.Property taxes have many variables such as home location and price. This is not necessarily a deciding point between new construction or existing homes but it is another associated cost to take into consideration when looking for the right home.
Location, Location, Location
New construction is normally (not always) found in housing developments. This means that your location is picked for you. You don’t have as much flexibility as if you decide to go with an existing home. If you decide you’re looking for a home in the great area of Collegeville, PA your new construction possibilities will be limited to the new construction housing developments in the area. However, if you decide you may prefer to live on the other side of town, you’ll have that flexibility if looking for an existing home.
The Decision Is…
Each situation is unique and you need to consider the pros and cons of each option. If you would like help deciding or you’ve already made your decision and ready to start looking for your home, reach out to us at Bonaventure so we can help you on your journey.If you decide new construction is the route for you, Sal Lapio Homes could be the fit for you. Sal Lapio is a leading home builder in the greater Philadelphia area providing a large range of options from townhomes to single-family homes.