New or Resale? Pros and Cons

By John and Natascha Karadsheh, Designated Broker, Associate Broker, and Owners, KOR Properties With resale inventory so limited, many buyers are opting for new construction. What are the pros and cons of new versus resale? Here are our thoughts on both.

PROS OF NEW

1. Everything is new! Less maintenance and worry for the first 10 years.
2. Updated finishes and floorplans.
3. A brand-new neighborhood.
4. The long lead time provides the time you need to pack and prepare for the move.
5. You can enjoy the process of watching your home be built.
6. In the current market of increasing prices, you may have instant equity by the time you close.

CONS OF NEW

1. It’s new! Therefore, you will have additional upfront costs to purchase window coverings, water systems, build a pool, and add landscaping and design extras.These are cash costs that can’t be rolled into your mortgage.
2. New homes are typically more expensive than resales per square foot.
3. Many new homes have smaller lots.
4. Your home may take 12 to 18 months to be ready for move-in.
5. You will be living in a construction zone until the subdivision is complete.
6. Limited inventory and supply chain challenges mean you may not be able to get the lot you want or even select your finishes.
7. Distance. Many new subdivisions are now on the outskirts of the Valley, which means that services, schools, and amenities may not be as accessible.

PROS OF RESALE

1. You can choose a home based on the neighborhood, school, or location that best meets your needs.
2. You typically get more square footage for the money.
3. Resales offer more opportunities for larger lots and unique features versus the standard packages offered by builders.
4. Pool and landscaping may already be in place.
5. Usually available for move-in within 45 days or less.
6. You can purchase a home in an area without an HOA — allowing for more personal freedom or the ability to offer short-term rentals.

CONS OF RESALE

1. Home may have deferred or approaching maintenance. These are cash costs that can’t be rolled into your mortgage.
2. Existing finishes may not be to your taste.
3. Floorplan and architecture may be dated (low ceilings, dedicated formal living versus great room, lack of open plan).
4. Neighborhood may not be well maintained or could be showing age.
5. Landscaping may need updating.
6. In today’s market you may have to buy negative equity to get your offer accepted.

If you are interested in new, please give us a call before you visit a subdivision for the first time. We have extensive experience in new construction and can help you navigate your build and save money.

Thinking about moving — let us help you make a plan that works best for your lifestyle. We have the real answers to your real estate questions.

John and Natascha Karadsheh are co-owners of KOR Properties, a boutique real estate brokerage serving the Valley of the Sun, and the creators and founding sponsors of Mesa Food Truck Fridays.

John has been a Multi-Million Dollar producing agent for over 20 years and is an Accredited Buyers Representative (ABR) and Certified Residential Specialist (CRS), a member of the Arizona Regional MLS Rules & Policies Committee & Appeals Committee, and the West and Southeast Realtors of the Valley Professional Standards Committee.

Natascha is an Associate Broker, a Multi-Million Dollar Producer, Founder of Mesa Food Truck Fridays, and Member, and Past-Chair of the City of Mesa Economic Development Advisory Board and serves on the Board of Directors of the Greater Phoenix Economic Council.

You can reach John at (602) 615-0843 and Natascha at (602) 909-4995, or visit their website: KORProperties.com.