Published June 2, 2025

Should You Buy an Existing Home or a New Construction?

Written by J. Michael Manley

Between An Existing Home or New Construction: Which Should You Buy?

You’re ready to buy a home, but now you face a big choice. Do you go with a brand-new build or find something that’s already lived in? Each option comes with trade-offs, and what works for someone else may not work for you. Are you looking for convenience or customization? Do you care more about location or new features?

What’s the difference?

An existing home has already been built and lived in. A new construction is a home that’s newly built. Sometimes it’s move-in ready, other times it’s still being finished when you buy it. You’re usually working with a builder instead of a homeowner. The choice comes down to location, cost, and timing. Are you hoping to move fast, or would you rather wait to get something brand new? The following are the advantages and disadvantages of the two.

Pros of buying an existing home

Pros of buying a new construction

✔️ You can move in faster. If you’re already pre-approved, you might close and move within 30 to 45 days.

✔️ Older neighborhoods often have larger yards and mature trees. Many are closer to downtown areas, schools, and shopping.

✔️ You might get more house for your money. Sellers may negotiate on price or offer credits for repairs or upgrades.

✔️ You know what you’re getting. You can see the condition of the home, walk through it, and get a home inspection before you commit.

✔️ Everything is new—roof, HVAC, appliances, flooring. You likely won’t need repairs for years.

✔️ You can choose your finishes. Many builders let you pick countertops, flooring, paint colors, and more.

✔️ New homes meet current energy codes. You may pay less for electricity and water each month.

✔️ Some builders offer incentives. They may help cover closing costs or include free upgrades if you use their lender.

Cons of buying an existing home

Cons of buying a new construction

✔️ Repairs and updates may be needed. You might deal with old plumbing, worn roofs, or outdated layouts.

✔️ You may face competition. If the home is priced right, you could end up in a bidding war with other buyers.

✔️ Older homes may be less energy-efficient. Higher utility bills and outdated appliances can raise your monthly costs.

✔️ Your options depend on what's available. You might have to compromise on features or location.

✔️ It takes time. Depending on the stage, you may wait several months before moving in.

✔️ You may spend more than expected. Upgrades can raise the final price quickly.

✔️ New homes often come with small yards and little shade. It takes time for new landscaping to grow in.

✔️ You might live near ongoing construction. The community could take years to fully build out.

Common questions buyers ask

Is one cheaper than the other?
It depends. A new home may cost more upfront but save on repairs. An older home might be cheaper but need updates. Run the numbers on both.

Can I still negotiate on a new build?
Yes, but differently. Builders may not lower prices, but they might include extras. Ask about credits, upgrades, or paid closing costs.

Is the buying process the same?
Not exactly. With a resale, you work with the seller and their agent. With new construction, you often deal directly with the builder. Bring your own agent to represent you. Here's why it is better to work with a buyer's agent.

Which one builds equity faster?
That depends on location and demand. A well-priced existing home in a good neighborhood may appreciate quickly. A new home in a growing area might gain value over time.

What if I want less stress?
If you don’t want to deal with repairs, a new home might be a better fit. If you care more about location and charm, you may prefer an existing one.

How do I choose the right one?

Make a list of what matters to you—location, timeline, layout, budget. Tour both options. Talk to your agent about market trends and resale value. Compare neighborhoods, builder reviews, and inspection reports.

Your choice should match your goals and lifestyle. Whether it's a move-in ready home or a brand-new build, pick the one that fits your needs.