Newly Built Home vs Pre-owned Home

Have you ever wondered the benefits of buying a newly built home versus a pre-owned home or vice versa? This can be a HUGE decision to make for some people, and rightfully so, as it is a tough place to navigate. Throughout this post you will find some pro’s and cons to consider before you come to making your final decision.

The first thing you should consider when buying a new build is when will the community be completed vs when you will need to sell. Resaleability is always where your focus should be. If you are coming into a new community and it is almost completed, this can be both good and bad. The builder will set the prices higher than the first homes that were built in the community. The benefit of buying at the end of community construction is if you have to sell quickly, you are not competing with brand new homes and incentives builders often advertise, because of this you even your playing field a bit.  It can be a very good scenario if you have a highly effective Realtor® to negotiate a lower price on your behalf.

Dirt build vs Spec Home

A dirt build or home to be built is when you have a home you want already in mind, but the builder only has a lot for it. A spec home is one you want that construction has already been started and will be completed soon. Many consumers don’t realize that this is a point of negotiation, most Realtor®’s, no different. Think about this scenario, if you have already put up thousands of dollars into something, are you more likely to push to negotiate that sale that costs you money every day or a sale that you have no cost involved in already. Your Realtor® will help guide you through this.

Will not using a Realtor® save you money on newly built home?

No, using a Realtor® while purchasing a newly built home will not save you money. Remember this when walking into a builder, the sales associates work for the builder, not for you. When the builder built the home, they already have a portion of the profits set aside for commission to be paid to a Realtor® representing a buyer. Often times we have heard of situations where builders try to entice consumers with incentives; closing cost assistance or additional upgrades possibly even a lower price to go with their product, but you have to fire your representation. There are many gimmicks out there, be aware of what you are hearing and believing. Do you ever hear of a builder not offering closing cost assistance or upgrade incentives or both?

Inspections are a must

We often get this question, do I really need to use a home inspector since I am buying a new home? The answer is, YES! Remember, there are no perfect houses out there. There are no perfect people either and we all make mistakes. If you have chosen to buy a to be built home, you should do a minimum of 3 inspections throughout the building process.

If you buy a spec home, you should do a minimum of one inspection.

For newly built homes & pre-owned homes, here are a couple of additional inspection costs you might also consider; septic, sprinkler, pool, termite (WDI).

Always do an inspection, no matter if your relative is in construction and knows the house is great. If something goes wrong, they will not be paying for the repairs, you will. Ask your Realtor® for recommendations on who to use and who not to use.


Pre-owned homes, your Realtor® can almost always negotiate a 1 year home warranty through a home warranty company. Should something goes wrong in your first year, it will most likely be covered by the home warranty company. Because all home warranty companies are not equal in coverage, you should research them thoroughly.

New Homes are a bit different in that they usually offer a 1, 2, 10-year warranty.  1 year if anything goes wrong (limited) they will repair. 2 years for anything electrical and plumbing.10 years for roof and foundation. Remember to always read the fine print on these. They are not always that cut and dry and do also vary from builder to builder.

New Home Builders

Armadillo Homes

Cal Atlantic



Chesmar Homes

David Weekly

Rob Hudson Homes

DR Horton

Emerald Homes

Express Homes 

Gehan Homes

Highland Homes

Imagine Homes

Japhet Builders

Lennar Homes

LGI Homes

KB Homes

Meritage Homes

MI Homes

Monticello Homes

New Leaf Homes

Princeton Classic Homes

Pulte Homes

Scott Fedler Homes

Sitterle Homes

Village Builders

Wall Homes

Whitestone Homes

Wilshire Homes



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