New Construction vs an Existing Home

When it comes to buying a home, one of the biggest decisions you'll make is whether to go for a new construction or an existing one. Both options have their advantages and disadvantages, so it's important to weigh them carefully before making your final decision.

First, lets talk about different kinds of new construction:

1. Custom: You choose a lot, design the floorplan or choose from some custom designs, and have complete say over finishes and materials. 

2. Tract: Also called production homes, these homes are built by builders who buy entire plots of land, subdivide the lots, and built homes that appeal to the masses. There may or may not be options to customize. 

3. Spec: Homes that are built without a specific buyer in mind. The builder tries to use finishes that most buyers may like, and there is typically little customizations offered. 

Custom new construction homes offer several advantages. First and foremost, you get to customize the home to your liking. From the layout to the finishes, you have control over how your home looks and feels. However, this kind of home can also be the most expensive. 

All types of new construction homes also come with several layers of inspection - from the builders, to the home inspector, to the home buyer - there are many eyes that see the home to identify anything that needs to be fixed. They also come with warranties - typically a one year home warranty, a 10-year structural warranty, and manufacturers warranties for all systems and appliances. Additionally, new homes come with the latest energy-efficient features, which can save you money on your utility bills. 

Spec and tract homes are often built with the masses in mind. They have affordable but appealing finishes, and they may be priced relative to the existing home comparables. Builders may also offer incentives such as closing cost assistance, rate buy down, or options and upgrades to help make these homes more appealing to buyers. 

However, new construction homes also have their downsides. Construction delays and unexpected expenses can add to the total cost and timeline of the project. Tract and spec homes also may not be completely move-in-ready; many don't come with a fridge, washer, dryer, blinds, or fence. While they may be able to be asked for in the contract, these could also be added expenses the buyer has after closing. 

On the other hand, existing homes offer several advantages as well. They may to be less expensive than new construction homes and may offer more character and charm. Plus, you can move in right away without having to wait for the construction process to finish, and they may have everything a buyer would need to move right in.

However, existing homes can also have their downsides. They may require updates and renovations, which can be costly and time-consuming. Additionally, older homes may come with unexpected repair expenses, such as a leaky roof or outdated electrical and plumbing systems.

Ultimately, the decision between new construction and an existing home will depend on your personal preferences and priorities. If you want a home that's move-in ready and don't mind doing some renovations, an existing home may be the way to go. However, if you want a home that's customized to your liking and has the latest energy-efficient features, new construction may be the best option.

No matter which route you choose, it's important to work with a knowledgeable real estate agent who can guide you through the process and help you make the best decision for your needs and budget.