Each type of home has pros and cons—see what to consider when house hunting.

Even in a tight housing market, homebuyer options include both new construction and existing homes. If you’re not sure which is right for you as you start house hunting, consider the pros and cons of each.

New construction homes pros and cons

New homes automatically have a lot of pros. Those buying new construction get to choose the finishes and colors they prefer. New homes also offer greater energy efficiency, more safety features and have lower maintenance needs.

While new construction homes usually cost more than existing homes, builders often offer incentives to sweeten the deal. And new home buyers get the protection of a builder’s warranty.

The cons of newly built homes include the time it takes to complete construction. Delays are common. Weather, supply chain issues, labor availability and other factors can slow building progress. If the homebuyer has the flexibility to stay in their current home delays are a minor inconvenience. However, if homebuyers must move out by a certain date because of a lease that ends or they’ve sold their current home, they’ll be forced to find temporary housing.

Another drawback to new construction homes is that they’re often located further away from city centers that are the hub for jobs, shopping and entertainment.

Existing homes pros and cons

Existing homes have many advantages. Often they cost less than new homes but offer a great location close to desirable amenities and jobs. Established landscaping and mature trees often make existing homes more inviting. In many cases, older homes have desirable architectural details simply not found in modern homes.

Depending on how well the house was–or wasn’t–maintained, buying an existing home might mean signing on for remodeling, painting and repairs. If prior repairs were of poor quality, homebuyers have the added expense of correcting shoddy work as well making the primary repair.

A common disadvantage of existing homes is their lack of adequate insulation and energy-efficient systems that result in higher utility bills.

The last consideration for an existing home may be a pro or a con, depending on your point of view. You can buy an existing home and customize it over time. While this involves the effort and expense of updating, the homebuyer can spread out the cost over time.

The right house for you

The right house for you is one that fits your budget and needs. When you find the new or existing home that meets your criteria, turn to us for your mortgage loan. You’ll have access to options tailored for first-time buyers, new construction and more.

 

All loans subject to approval. Rates, terms, and conditions are subject to change and may vary based on credit worthiness, qualifications, and collateral conditions.