When the time comes for you to buy a home, you’re going to travel down one of two paths: You will either buy a new construction home or a resale home. Today we’re going to cover the differences, as well as the pros and cons of each type of purchase.
The obvious difference is that a new construction property is brand-new. You can go in early enough in the process to pick out all of the flooring, kitchen finishes, and more before it’s constructed for a truly custom home.
New construction is a little different here in San Diego, so there are a few things you should look out for. A lot of new developments contain additional taxes such as a Mello-Roos tax. Many also have homeowners associations that require fees. These costs can add up to a pretty substantial amount each month if you’re not careful with your planning and budgeting.
“Don’t show up to a new construction site without an agent!”
Most new construction homes come with a basic package and have optional upgrades that you can add on from there. There are lender incentives as well, where you get a credit on your closing costs or upgrades by using their preferred lender.
Buying a resale home is different. Prices will certainly be lower, and in some cases, a lot lower. It won’t be a brand-new home, but you’ll still have the opportunity to upgrade the home as you see fit.
Whether you’re thinking about buying new construction or resale, I advise you to bring an experienced agent with you. It’s especially important to bring them with you when visiting a new home construction site for the first time. If you don’t, they won’t allow you to have representation.
If you have any questions about buying new construction versus buying resale, or about real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
