If you're in the market to buy a home, you have a choice of building or buying a new construction home, or a resale home. There are many advantages to buying new construction over resale. Here is a short list of benefits associated with new construction.
Resale homes are used homes. If you have an affection for historic properties, a resale home is the way to go. If you love a particular neighborhood, a resale home may be perfect. If not, be sure to consider this short list of disadvantages of purchasing a resale home.
A new factor in the discussion of new construction vs resale homes is today's real estate market. Extremely low inventory in the resale home market has caused prices to spike. The demand for homes is so high that desirable listings end up with multiple offers resulting in bidding wars. In this case, homes may sell for thousands of dollars over the asking price. If there is a mortgage involved, the home may not appraise leaving the buyer to try and renegotiate the contract price or pay the difference in cash. Meanwhile in the new construction world, builders are combatting the perfect storm. The demand for housing is strong and there are qualified buyers in line. However, delays in materials and labor have put a strain on building in a desirable time frame which adds expense for the builder.