10 Pros and Cons of Buying a New Construction Home

Pros and Cons of Buying a New Construction Home in 2022

Deciding whether to buy a new construction home vs. a resale home can be a difficult choice,  so you should consider your purchase carefully. There are pros and cons of buying a new construction home that can impact ongoing costs, resale value, your general enjoyment of the home, and many other aspects of your homeownership.

The biggest and most obvious differences are that by buying a new construction home, you will have the opportunity to make modifications and ensure that everything has been done right. New construction homes should require less maintenance early on and allow you to budget more for the actual home.

Whereas resale homes, depending on their age, could have many maintenance requirements coming up that you need to factor in and may want to reduce your budget for the home's initial purchase. 

If you purchase something older that people have already lived in, you can’t be sure what was done during construction or how the previous owners treated or maintained the home. 

Follow along as we take you through the benefits/advantages of buying a new home and the drawbacks/disadvantages of buying a new home.

What Are The Pros and Cons of Buying a New Construction Home?

The pros and cons of buying a new construction home are important to understand as that can heavily impact how much you want to budget for the home purchase and need to set aside going forward for the length of your homeownership. 

Listed below are the advantages of buying a new home and the disadvantages of buying a new home:

Benefits of Buying a New Construction Home

  • Easier and cheaper to customize
  • Brand new with no damage
  • Newer construction methods for lower ongoing costs
  • New local infrastructure, including roads and schools
  • Limited maintenance costs on new homes 

Drawbacks of Buying a New Construction Home

  • Higher costs that may not appreciate in the future
  • You need to wait to move in for construction to complete
  • Fewer options for the location of your new home
  • Property taxes can be much higher initially in new communities
  • Landscaping is undeveloped and could take years to grow

Pros and Cons of Buying a New Construction Home

Advantages of Buying a New Home

More Customization Possibilities

One of the biggest benefits of buying a new home is that you should have a much bigger opportunity to customize and build your home the way that you want it. 

Whether you’re using an architect to design a complete home or whether you’re selecting a home to be built from a builder, you will have the option to make customizations that best fit your requirements. 

Even if you have to select from a catalog of designs, you still get to pick where things go, whether you’re going to be one-story or two-story, how close bedrooms will be to each other, and even how many bathrooms you’ll have. 

You can also design the layout of the property, including what type of fencing to use, the landscaping to set up, and where to place any equipment required for the home. 

When you buy a resale home, everything has already been done, and if you want to make changes, it will be much more costly, and you may never have the opportunity to do it. 

So while the initial cost may be more, your happiness in a design and layout that you want can outweigh the costs required down the line to modify the home or property.

Brand New and Perfect

When purchasing a new construction home, it will be delivered to you in perfect condition that will last as long as you care to maintain the home in that condition. As a result, you won’t need to deal with finding surprises from previous maintenance issues, there won’t be any damage to the walls from wear and tear, and you know that you’ll be making the first memories in this home.

It may not be something that initially comes to your mind, but there’s a sense of real ownership of a home that only you have lived in and know exactly what has been done, when, and you have full and total control of it.

Environmentally Friendly Options

New construction homes are built using new environmentally friendly options available, which may not have been options when older resale homes were built or may have been too costly at the time.

Environmentally friendly options are important because they save money, can get you government rebates, and have fewer maintenance costs. 

At a minimum, new construction homes will have better energy efficiency, which saves you ongoing costs, including new HVAC systems, new electrical, and new plumbing, which allows you to get more for less out of your new home. 

You’re also going to have better performance in your home in most cases, hot water will start quickly, light bulbs will likely be LED so they don’t need to be replaced as often, and your home will likely stay warmer in the winter and cooler in summer due to newer technologies available.

Newer Community

Buying a resale home will likely mean that you’re moving into an existing or older community that may have older infrastructure and may even have existing HOAs that can have rules and regulations that you disagree with but have no choice over any of them.

Newer infrastructure in new communities can mean the schools are newer and better with new amenities and equipment for your kids. Also, the roads are newer with no potholes and pavements to make walking safer.

Overall a newer community can be a way for you to decide the direction of that community, gives you access to newer infrastructure, and is overall just a nicer place to live.

Lower Maintenance Costs

Another one of the advantages of buying a new home in Summerlin (or elsewhere) is that they’re brand new, there shouldn’t be any problems to start with, and any issues that do arise should be covered under the development warranty.

With a new construction home, it will be years before you need to replace or repair anything that isn’t caused by direct damage. Your roof is new, pipes won’t be bursting due to age, there will be no damage or sinkage of the home due to age.

You’ll also find that none of the internal parts of the house will need replacing any time soon, like the water heater, HVAC system, insulation, or even the appliances in the house as they’re brand new as well.

Buying a New Construction Home

Disadvantages of Buying a New Home

High Initial Cost

One of the biggest drawbacks of buying a new construction home is that you instantly have higher prices because its new, often this is 20% higher than a resale home. You pay the initial costs, and there’s no guarantee that you’ll be able to sell your home for that same price as it ages and people see maintenance costs in its future.

You do get to customize your home for that, but it comes at a higher price. However, it is possible to find homes that match your needs if you’re willing to look and make some adjustments to your expectations or needs, and you’ll often pay a lower price for the same features as your new construction home options.

Longer Time Before You Can Move In

New homes in Henderson need to be built, which in some cases could take a year or more between the planning, design, and actual construction of the home. In the meantime, you need to find somewhere to live, including a rental, or you could be shouldering the costs of two homes until you can move in.

If you’re renting, then it may be difficult for your rental to feel like a home, and like you’re living out a suitcase until you can move into the new home. You’ll also be paying rent on top of any other costs associated with your new home. 

If you stick with your older home, then you may not have the initial investment required to put towards your home, so the costs can be higher and riskier. It also means that you’re shouldering the costs of your old home for the time it takes to get your new construction home completed.

Fewer Community Options

One of the other major disadvantages of buying a new home is that your options for communities will be limited. While it’s great that you get access to new infrastructure from a new home, the sites available to build it may be limited and may not suit the locations where you’d like to live. 

You could be living further outside a city than you’d like because there simply isn’t an appropriate space to build the home that you want. If you wanted to live by the beach or close to specific things like your work or other city features, it might not be an option based on available land.

If there is a lot of new construction, which is likely for new homes, you’re also not going to know what type of neighbors you will have. You could get lucky with great neighbors, but there’s nobody to ask, and you can’t see how your neighbors live or take care of their community until everyone moves in. 

You could end up living in a community that you don’t like if you don’t help to shape it in the way that you want, which is likely in most cases as people will just move in and start living.

Higher Property Taxes

New construction areas will often have higher taxes to pay for the new infrastructure that has or needs to be built. So as you move into a new home, your infrastructure may be newer, but you’re likely going to be paying for that through higher taxes.

Depending on how high the taxes are, it may remove certain areas from your options list of where you can build and live, or at a minimum, it adds more cost to an already higher-cost investment.

Undeveloped Landscaping

If landscaping, privacy, and a beautiful exterior of your home are important, then a significant drawback to a new construction home can often be the lack of mature trees, shrubbery, and other options around your home. It also adds cost to have somebody buy and layout the landscape around your home unless you have the skills to pick out and plant everything yourself. 

Trees can take many years to grow big enough to provide privacy and the beauty they’re known for, so new construction home landscaping can appear barren for at least the first few years. It could take much longer for your trees and hedges to grow big enough to provide privacy from your neighbors or noise protection from roads and other local noise.

Conclusion: Pros and Cons Of Buying A New Construction Home

Ultimately, the choice is yours, and you should carefully consider the pros and cons of buying a new construction home to see what aspects of a home and location are most important to you.

Sometimes you can see the benefits of a new construction home with fewer drawbacks if you’re willing to buy a resale home that is only a few years old. However, that still leaves you without the option of customizing your home and location to exactly what you want and may be the biggest draw to your reason for buying a new construction home in the first place. 

Whether you buy a new construction home or a resale home, it will be yours for some time, so making sure that you weigh all of the pros and cons listed above is crucial to ensuring that you can enjoy your life with minimal issues related to your home.

You should also consider whether you can grow with your home or if you’ll need to move to accommodate a new family in the next few years with more space and better schools. Consider as well if you can handle the commute from your home to work and whether your location has all the facilities locally that you want to use often. 

Hopefully, this list of pros and cons of buying a new construction home and the thoughts provided will help you make the best decision possible for you and your family. 

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