New Build vs Established Home

Start beyond the advertised house price. Include land, site preparation, surveys, permits, utility connections, plans or design changes, builder allowances, landscaping, driveway and financing costs that may sit outside the base contract.

Construction complexity to check:

• Who is responsible for permits, inspections, utility connections and site work?
• Which finishes are included allowances, and what happens when selections cost more?
• How are change orders priced and approved?
• How are construction-loan draws, interest during construction and conversion to permanent financing handled?
• What happens financially if weather, materials, labor or inspections delay completion?

Know what is included, what can change, and who carries each responsibility before relying on the starting price.

The price is more visible, but the condition may carry costs that are not. Review the age and condition of the roof, heating/cooling, plumbing, electrical system, foundation, drainage, windows, appliances and other major components. Use appropriate inspections and review available disclosures before deciding.

Look beyond move-in day:

• Which major systems may need repair or replacement soon?
• Will insurance be difficult or expensive because of the home, roof, location or prior losses?
• Are renovations needed for safety, function or everyday use?
• What maintenance has been deferred?

A lower purchase price can lose its advantage if several major repairs arrive soon after closing.

Put both choices beside each other using more than purchase price.

• For a new build, include likely upgrades, change orders, temporary housing and delay exposure.
• For an established home, include near-term repairs, maintenance and renovation priorities.

Then compare financing, taxes, insurance, location, move-in timing and the amount of money left available after the purchase.

Useful question: Which uncertainties can I identify and carry more comfortably—the changing pieces of construction, or the existing condition and repair history of an older home?