What are the pros and cons of buying resale vs buying new construction?

For several reasons, new homes usually command a premium over that of existing resale homes, but often require several years of home ownership to recoup the premiums paid. Also, new homes have an emotional appeal unlike that of resale properties that builders go to great lengths to tap into to attract buyers, which can further drive these premiums. Secondly, buyers are willing to spend more upfront with an understanding that part of what they are paying for is lower maintenance costs. A builder’s warranty, along with brand-new roof, appliances, furnace and other operating systems that make major repairs unnecessary, work together to counteract possible slower appreciation initially. In the first several years of ownership, total operating costs per house are lowest for brand-new homes and because of advances in technology and efficiency ratings the utility costs are typically lower as well. Measured per square foot of living space, operating costs are consistently higher for progressively older existing homes. Operating costs include expenditures for both routine maintenance and major repairs. That said, there is a much greater supply of resale homes to choose from and they offer a much greater opportunity for variety, including remodeled and updated homes that rival and often times surpass that of new construction. One survey by the National Association of Realtors shows that resale homes do have an edge over new homes when it comes to return on investment.