It’s hard enough to work through the home loan process. But when you add whether you want to buy a new or existing home, you’ve got yet another critical decision to make.  

For example, according to data from the National Association of Realtors, existing-home sales totaled $4.44 million in March 2023. That compares to 683,000 new homes that were sold during the same time.  

Still, it doesn’t hurt to weigh your options. That’s where our pro/con list comes into play. Take a look: 

Advantages of buying an existing home: 

• It can be move-in ready and may even be less expensive than a new build.
• Most likely part of an established neighborhood where yards and landscaping have matured. You save time and money on those maintenance efforts.
• Expired or near expiration of special assessments – again saving you money.
• You don’t have to spend time making that multitude of choices when building a new home. All have been decided – even if you still do some sprucing up to make the residence your own.

Disadvantages of buying an existing home: 

• More work than you expected needs to be done because of unforeseen issues. 
• You may have increased expenses on fixing various issues due to the age of the home – such as updating the heating and air systems, plumbing, or electricity.
• You’ll want to view the neighborhood to understand anything that could decrease the home’s value, such as renters nearby or homes not cared for. 

Advantages of new construction:

• A variety of choices – If you go the custom build route, you’ll work closely with your builder on the layout and finishes. 
• Non-custom new homes typically have a variety of floor plans and finishes. 
• More energy efficient than existing older homes through high-efficiency appliances, insulation, windows, and heating and cooling systems.   
• Incorporates smart technology options that allow for systems automation. 
• Requires less maintenance, so your costs are more predictable. 
• Covered by home warranties, which helps cover any repair or replacement costs.

Disadvantages of new construction

• Higher construction costs.
• The unpredictable timing of the new home build and closing on the home because of supply chain issues. 
• The added land expense.
• You may pay special assessments for new water, sewer, and gas lines. 
• Costs for all-new yards and landscaping – depending on when you move, you may need to wait a few months to plant both. And then wait years for trees and other plantings to grow and truly complement your home. 

Ultimately, buying a new or existing home varies from person to person. However, we hope our pro/con list gives you more insight into both to make your decision easier.  

RailTrust Mortgage is always here to help. Our team of trusted mortgage experts is your guide to assist with your home-buying journey. Our mission is to make the home loan process simple, straightforward, and personal – treating you like family.