I’m in a bit of a pickle trying to decide whether to go for a new construction home or just buy an existing one. Here’s the scoop: I’m looking in a high-cost-of-living suburb in New England, and our household income is about $240k. We have around $200k available for a down payment. The market is super hot with low inventory right now. The new build option is a 2100 sqft home with a base price of $700k, but I expect it to be closer to $750k after adding appliances and other upgrades. That would mean a monthly payment of about $4500 on a 30-year fixed loan. The lot is 0.5 acres and mostly flat, which is great since the house will have good drainage in this high-water area. So, it’s part of a small development on a cul-de-sac in a nice part of town. On the flip side, I’m considering existing homes in the town, which are typically around 2000-2200 sqft, priced between $550-650k depending on condition and upgrades. The monthly payments for those would be roughly $3500-4000 on a 30-year fixed loan. Most of these homes were built in the 1960s or 1970s and are often part of larger developments, with lots of about 1 acre. Some have issues like water seepage into basements, which is concerning. I’m torn because the new build is shiny and should come with fewer issues, like having new mechanicals and no basement water problems. But the monthly payment is definitely higher, which kind of offsets the savings I’d get from reduced maintenance costs. Plus, I keep hearing that they don’t make homes like they used to, so I worry about paying a premium for a new house that might have its own set of issues. The builder is local, not a big national company, so I’m hoping that might be a good sign. I really want to make the right choice here, and it feels like both options have solid pros and cons. Anyone been in a similar situation and have insights to share?
I was in a similar situation. Just a heads up, the $700k base price usually doesn’t include landscaping, so once you factor that in along with interior upgrades, you might be looking at $800-850k. Plus, property taxes are generally higher for new builds. I’d personally go for a used house.
We went with a new build and honestly, I love it. It’s everything we wanted and we didn’t have to compromise on features. The existing homes we looked at didn’t have things like a walk-through pantry or an upstairs laundry. Utilities are also cheaper in a new build since everything is energy-efficient.
Not in the same area, but we chose a new build too. I was tired of dealing with older homes that had loads of DIY repairs and maintenance issues. Just be cautious of potential water problems. I’ve seen newer homes with drainage issues as well.
You really can’t build a quality 2000 sqft home today for $750k. I’ll stick to my guns on this. Older homes were built with stronger materials, and you might find that they actually last longer.
I totally understand the dilemma. If you’re leaning towards new construction, just make sure to do your research on the builder. Local builders can vary widely in quality, so it’s worth asking around for recommendations.