Buying a home is a big decision. So many factors have to be considered. Location, style, size, features, and yard size are a few. Then there’s the choice of the age of the home. Maybe you’re wondering, “Should I buy a used or a new home?” Here’s information to help you make the right choice.
What is a new construction home?
A new construction home is brand new, never lived in. You can buy one that’s completed or under construction. These are called “quick move-in” or “move-in ready” by the builders. When a builder plans to build one of these “spec homes”, they usually map out all the details and purchase the products, materials, and supplies (e.g., front door, garage door, countertops, cabinets, flooring, windows). However, depending on the stage of construction, you might have options to pick certain interior details, like the wall colors, interior doors and hardware, light fixtures, and cabinet hardware.
The other option for buying a new construction home is to have one built for you. Choose the homesite (lot) and floor plan. Then, work with the builder to select every detail—from the home’s siding and trim to each feature inside. You personalize the home to your style and budget. In some cases, you might be able to make structural changes to the floor plan, like converting a space to a bathroom, adding windows, switching to a side-loaded garage, or extending the size of the patio.
Here’s another important distinction you should know about if you’re thinking about building a home. When you purchase a to-be-built home within a community—as opposed to on your own land—you don’t need a construction loan. The cost of the lot and the home is rolled into one loan. And you close on the purchase just as you would with an existing home.
Is a new construction home more expensive than a used home?
You might expect a brand new home to cost more than a resale. And that used to frequently be the case. But times have changed.
It’s not necessarily cheaper to buy than to build a home. According to the National Association of Realtors, the median price for an existing home is $426,900. The US Census Bureau reports that the median price for a new home in June 2024 was $417,300. You get a brand new home and save money!
What are the benefits of buying a new construction home?
In addition to a potentially more affordable price, consider the other benefits of buying a new construction home.
The home includes modern features.
A new home means the latest trends and advances in design, construction, and features. Nothing is outdated—from the construction methods and materials to the interior and exterior details.
And it’s not just what you can see. Modern features in a new construction home include the wiring and plumbing. At New Home Inc., we use CAT6 cabling, the most advanced Ethernet cable. CAT6 delivers faster data transmission and a robust signal. You don’t have to worry about dead zones! You likely won’t find CAT6 in a resale home.
We also follow a “Future-Proof” approach at New Home Inc. Some of the modern features included in the townhomes and single-family homes we build in the Raleigh, NC, area include:
- The fully enclosed, secured Smart Home Delivery Center protects your packages from the weather and porch pirates. The delivery person uses a one-time code to access the space. The smart lock automatically relocks and your package is safe.
- The smart home automation package we include in each home makes it easy to move in and connect all of your smart devices. The package provides a control panel, whole home network panel, smart door lock, smart thermostat, and video doorbell. You start with the right smart home technology and with our package, and it’s easy to add more!
- If you have an electric vehicle, you’ll appreciate the forethought of the included electric vehicle charging station rough-in. All the behind-the-wall work is done, making it simple to finish the station.
- The oversized kitchen island has seating on 3 sides, not just 1 or 2. By removing the elevated breakfast bar you’ll find in outdated homes, we provide large serving, dining, and workspace.
- Our “messy kitchen” service pantry adds on to your work and storage space by providing a separate nook with cabinets, countertops, and the option of a sink, mini-fridge, dishwasher, wine chiller, and other features that reduce the traffic and messes in your kitchen.
- A clutter-free drop zone is outfitted with a hall bench and cubbies to maintain order.
- New Home Inc. even features pet spaces, like a nook under the stairs and a grooming station, if you want them.
You can move in without repairs and remodeling.
A new construction home is move-in ready. You don’t need to budget for repairs and remodeling, delay moving in, or live with the inconvenience of construction happening in your home. A Zillow study in 2021 showed that homebuyers should expect to spend $26,900 to make a resale home move-in ready. That’s considerably more than the expectation by first-time homebuyers of spending $10,000 to $15,000, according to that same Zillow study.
Even simple updates—like replacing appliances or replacing the flooring—will run into thousands of dollars per project. Be sure to estimate the cost of replacement, repair, and renovation when looking at resale. The cost could be the tipping point that shows the existing home is more expensive than new construction.
Energy efficiency is built in.
New homes are built to a higher standard for energy efficiency and indoor air quality. Both of these elements contribute to living in a home with lower utility bills and more comfort.
The Home Energy Rating System (HERS) index is a national standard for measuring a home’s energy efficiency. The scores range from 0 to 150, with the lower scores indicating greater efficiency. According to the HERS Index, the average resale home is 30% less energy efficient than the average new construction home.
We adhere to the ecoSelect Home Efficiency Program, which incorporates energy efficiency throughout your home. This program, founded by Southern Energy Management, includes a HERS checklist, and our homes are certified by a third-party inspector as meeting these high standards.
The included whole home air filtration system by New Home Inc. protects your family by reducing indoor pollutants. We use MERV-rated filters to improve the performance of your HVAC system while also protecting the quality of the indoor environment.
Everything is covered by a warranty.
When you buy something new, you expect the manufacturer to provide a warranty, to stand behind what they’ve sold you. A home is no different.
A builder’s warranty covers your home’s structure, from the foundation to the roof. The plumbing, electrical, and HVAC systems, landscaping, flooring, paint, insulation, doors, windows, and roof are warrantied. Your appliances are brand new, so they’re protected by the manufacturer’s warranty.
Breathe easy. You can move into a new construction home without any concerns about unwelcome surprises that need repair or replacement.
New or used home? Know the total cost of ownership.
The purchase price of a home is the cost of acquiring the property. Once you move in, you have other expenses to consider for your bottom line. Before you start shopping for a home, learn what goes into the total cost of ownership.
- Mortgage
- Property tax
- Homeowner’s insurance
- Private mortgage insurance (required if you put down less than 20% at closing)
- HOA fee
- Utilities
- Maintenance
- Repair and remodeling
- Lawn care
Create a budget so you know that you can afford to live in the home once you’ve committed to buying it.
A new home could be the safer choice.
There are certain risks to buying a resale home. If you’ve ever watched home makeover shows, you’ve seen the contractor uncover something unexpected (but always expensive to repair) behind the walls or under the floors. A home inspection—when done thoroughly—should uncover such problems, but that’s not always the case.
In the interest of finding something that has been upgraded, you might be impressed by what you see. However, a house flipper—someone who buys a home to fix up and sell—could have been in a rush to turn a profit. Their urgent pursuit of profit could lead to shortcuts and cost-cutting measures, like cheaper materials or inferior workmanship.
Is New For You?
What’s your answer to, “Should I buy a used or a new home?” There are many benefits of buying a new construction home. But is it the right choice for you? Only you can decide.
In the Raleigh, NC, area, New Home Inc. is building communities of brand new townhomes and single-family homes. We’ve raised the standard for standard features, while ensuring affordability. Browse our current selection of quick move-in homes for sale near Raleigh, in the suburbs Lillington, Fuquay-Varina, Smithfield, and Willow Spring, NC. Contact New Home Inc. and learn more about what goes into the decision of buying a home today.
