What to consider before you buy.
Big picture: Your choice between a new build and a resale home often comes down to budget, timeline, and how much work you’re willing to take on. Here’s how they compare – by cost, convenience, energy use, and resale potential.
New Construction Homes
Modern design, fewer repairs, more upfront cost
| Pros | Cons |
|---|---|
| Energy-efficient appliances and insulation | Often farther from city centers |
| Modern layouts and wiring | Fewer opportunities for negotiation |
| Fewer maintenance issues early on | Landscaping and window treatments may be minimal |
| Builder warranties and financing incentives | HOA fees may be higher in newer developments |
| No bidding wars in most markets |
Cost Comparison:
Maintenance: Low ($500–$1,500/year)
Insurance: Less than resale due to resilient materials, depends on location and value
Energy efficiency: High – built to current Energy Star standards
Resale Homes
More charm, more to fix
| Pros | Cons |
|---|---|
| Established neighborhoods, mature landscaping | Older systems may need replacing |
| More central locations | Fewer energy-efficient features |
| Potentially lower upfront cost | Risk of multiple-offer competition |
| Unique architecture and character | DIY or professional upgrades often required |
| Flexibility to remodel over time |
Cost Comparison:
Maintenance: High ($2,000–$10,000+ in early years)
Insurance: Often high due to outdated systems and replacement costs
Energy efficiency: Low to moderate unless upgraded
Possible Costs for Upgrades and Repairs:
| Upgrade & Repairs | Cost |
|---|---|
| HVAC system (15–20-year life expectancy) | $11,500 to $14,100 |
| Flooring (carpet removal or updated flooring) | $2 to $15 per square foot |
| Roof (25-year life expectancy) | $5,400 to $19,800 |
| Exterior Paint | $3,000 to $10,000 |
| Interior Paint | $2,000 to $6,000 |
| Kitchen Remodel | $20,000 to $70,000 |
| Master Bath Remodel | $7,000 to $30,000 |
Who Wins? Breakdown by Category
1. Energy Efficiency New homes win here, hands down. They’re built to stricter codes and often include energy certifications for HVAC, insulation, windows, and appliances.
Winner: New
2. Customization New homes often let you choose finishes, layouts, and tech options before construction. Older homes require retrofits, if possible and with substantial costs. Consider costs of removal of load-bearing walls, wiring replacement, and security systems in older homes.
Winner: New
3. Maintenance & Repairs Resale homes may need costly upgrades fast: HVAC, roof, flooring, appliances. New homes come with warranties and lower risk.
Winner: New
4. Location & Neighborhood Resales tend to be closer to city centers and in mature areas. New homes are usually in growing suburbs.
Winner: Resale
5. Financing Options Builders may offer better financing packages, rate locks, and closing cost help through preferred lenders.
Winner: New
6. Buyer Competition Low inventory can spark bidding wars for resales. With new homes, you’re often the only bidder.
Winner: New
7. Resale Value A five-year-old home typically sells for more than a 25-year-old one. New developments may also drive up home values over time.
Winner: New
Bottom line:
If you want lower maintenance, modern features, and energy savings, a new home is the better pick. If you value location, character, or long-term remodeling potential, a resale home might be worth the extra work. Decide based on what fits your lifestyle – and your budget.
Julie Gordey
A lifelong educator, Julie Gordey, is a retired school administrator. After years of focusing on education, this University of Texas graduate now travels and enjoys freelance writing for BDX and NewHomeSource.com.