If you’re hesitant about buying a home due to concerns over upkeep costs, understanding the differences between new and existing homes can help you make an informed decision.
Newly Built Homes Need Less Upfront Maintenance
If your budget allows, a newly built home can alleviate some of your maintenance worries. Brand-new homes typically require fewer immediate repairs since all systems and appliances are fresh and unused. As LendingTree points out:
“Since the systems, appliances, roof, and foundation are new, you’re less likely to pay for major or minor repairs within the first few years of homeownership. That can make a big difference for first-time homebuyers who are adjusting to owning rather than renting.”
Additionally, many builders offer warranties that cover significant expenses. First American elaborates:
“The new systems in your home, like plumbing, electrical, and HVAC, are typically covered for one to two years by your builder’s warranty. When something happens to these systems, you contact the builder or their warranty company.”
Existing Homes Can Still Have Great Perks
It’s not just new homes that can come with warranties—existing homes can as well. Your agent might help negotiate a home warranty as part of the purchase agreement, although not all sellers may agree to this. If not, you can opt to purchase one yourself. Forbes notes:
“During a real estate transaction, a home warranty policy can be purchased by the buyer or the seller.”
MarketWatch adds:
“A buyer’s home warranty benefits both buyers and sellers, as it helps the seller close the deal while providing the future homeowner with peace of mind that they’ll be covered if a system or appliance breaks down. Sometimes, a seller will pay for the first year of the home buyer’s warranty to sweeten the deal, but it depends on the real estate market.”
If you’re considering a home warranty for added security, your agent can negotiate on your behalf. Just remember, whether a seller includes one often depends on the local market conditions.
So, Should I Buy New or Existing?
While new construction offers the benefit of reduced upfront maintenance, existing homes come with their own unique advantages. Older homes often boast character and charm that are hard to replicate in new builds. They also tend to have established landscaping and a sense of community, making them feel more inviting. On the downside, new homes can take time to complete if they’re still under construction.
Bottom Line
Whether you choose a new or existing home, you can mitigate maintenance concerns with a home warranty. To explore your options and determine your priorities, consult with real estate professionals who can guide you through the process.
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