Cost Differences

First up, let’s compare the differences in cost between resale and new construction homes in Raleigh, NC.

There are many layers to this comparison, but when just looking at the home purchases in the greater Raleigh area, the average resale home has been $543k at $251/SF, while the average new construction home has been $622k at $258/SF.

So as you would expect, new construction homes are more expensive because let’s face it, they are new!  But, many people don’t factor in additional charges on both sides.

For a resale home, you potentially have the benefit of getting a home that someone has already made livable, such as putting blinds on windows, a patio in the backyard, possibly storage in garages, landscaping, and more.  

This can save you a lot of money, but if you don’t like what they have done, or the style of the home in general, you obviously have to factor in renovation costs.  In some cases, these renovations can level the playing field between a resale and new construction home if you feel it’s needed.

New construction homes are the opposite.  You should be getting a home with trendy finishes that really shouldn’t require any modifications, but it’s bare bones.  Don’t underestimate the cost for blinds, additional landscaping, garage storage, backyard entertainment modifications like patios and fire pits, storage and organization systems for drawers and closets.  It all really adds up, so make sure to factor those things in when comparing options.

Now one last cost category to consider is that if you’re building a new home, you will need to have typically 10% cash down when you first SIGN for the house, prior to any construction starting.  This is usually non-refundable as well, and many builders also require you to pay up front for any changes made after initial agreement.

Maintenance

Now that we’ve covered cost, the next area of comparison between resale and new construction homes in Raleigh, NC is maintenance.  

New construction homes obviously have the advantage here, as you really shouldn’t have to worry about replacing anything for 7 to 10 years because everything is brand new.  There are a variety of warranties that come with the house on major systems, and you typically have a 6-12 month warranty from the builder if anything at all goes wrong with the house, with the exception of wear and tear related issues.

Resale home maintenance really depends on the age of the home, as the older the home, the more maintenance is required.  This is something you should carefully consider when buying a resale home, as homes in the 15-20 year age range can be costly if the seller has not replaced HVAC systems or the roof.

If you purchase a resale home that has been built within the past 5 years, maintenance should not be much of an issue still, but really look into what has and has not been replaced by the seller if purchasing a home over 10 years and make sure you have provisions in place to address these costs.  Many times, home warranties are great options to protect your major systems in the event they fail.

Yard

The next comparison to consider is the differences between the yards that you get.  While some new construction neighborhoods do a pretty good job at preserving trees, the neighborhoods will still feel bare for at least 5 but more like 10 years until the landscaping really matures.  

The benefit of a resale home here is that there are plenty of options around Raleigh and its’ suburbs that have very mature landscaping and natural privacy from your neighbors.  

Yard size is another thing to consider, as resale homes around Raleigh in the older subdivisions will many times come with ½ acre or more lot sizes.  For new construction homes within town limits, more often than not, lot sizes tend to be around 1/4 of an acre in size.  There are plenty of new construction neighborhoods with lots from ¾ of an acre up to 2 acres, but those are usually further out and not within city or town limits.  

Location

Moving on, this next category is all about location.

Raleigh and many of its’ major suburbs are running out of land to build large, new construction communities on.  In Raleigh itself, there really are no new construction communities, rather you see homes in existing neighborhoods getting knocked down or rebuilt.  

There may be a street here or there that has a row of new construction homes, but in general, you will not see these master planned, new construction communities popping up in prime locations.  These large communities are now being built on the outskirts of Raleigh’s suburbs, and while you can still find some in pretty good locations, they will not be in the absolute prime locations in the area anymore.

So if being in the absolute best location is important to you, looking at an established neighborhood is where you’ll have to look.  Now again, you may be able to find a one off or a small pocket of new construction homes in these neighborhoods, but expect to pay well over a $1M, if not into the $2-3M range for these homes.  

Community

Next up, let’s compare the feeling of community you get when looking at resale and new construction homes in Raleigh NC.  

I’ve lived in both situations, and if you’re looking for a very social environment with a strong community feel, a new construction community is the way to go.  This is a great option for people who are relocating to Raleigh as everyone in the neighborhood is new, even if they are moving from within the area itself, and are looking to get to know their new neighbors.  Also, most new construction communities now come with some level of amenities, which naturally provide more gathering places to naturally meet your neighbors.

Resale neighborhoods can be hit or miss on this category on whether or not the neighborhood feels secluded or social.  Many older neighborhoods do not have neighborhood pools, playgrounds, or common facilities that allow for natural socializing, but neighborhoods built within the last 10-15 years many times do have these amenities.  

As you could imagine, the larger and more private the lots leads to a more spread out neighborhood, and generally a less social environment overall.  If this is something you’re concerned about for a resale neighborhood, I would highly suggest spending some time walking around the neighborhood on a weekend to get a feel for the activity.

Stress in Home Buying Process

And the last category that I wanted to compare involves the differences in stress when buying a home.  

Buying a home is always stressful, but out of every option, the least stressful option is buying a new construction home that’s already finished.  The loan process is the sale as a resale, and the builder generally fixes everything that is wrong with the house before closing.  You also still get the 6-12 month warranty for just about everything, and long term warranties for major systems.

On the opposite end of the spectrum though is building your own house.  It’s an incredibly rewarding and enjoyable experience to design and pick the finishes in a brand new home, but it’s typically pretty stressful.  

For custom homes, while you can customize just about anything, the amount of selections can be overwhelming.  There are multiple walk throughs, and there are no doubt challenges that come up during construction to work through with the builder.  

And the schedule can be stressful as well, especially if the builder is taking longer than expected.  I will say, it does make a big difference working with an experienced real estate agent in new construction builds as they can help guide you, let you know what to expect, and help work through problems that occur.  

Our team has helped tons of clients build new construction homes, and I’ve built multiple myself, and our relationships with the local builders have helped our clients in many ways.

Lastly, resale homes also carry their own stressors, which mostly revolve around inspections, appraisals, and negotiations.  For older homes, you should expect a long list of items on the inspection, and depending on what is found, that can be stressful for people to work through with their agents.  

Know that agents deal with these type of negotiations everyday, and specialize in working with all parties to come to an agreement.  So while it can be stressful, picking an experienced agent and trying to listen to their advice, is the best way to navigate through these situations.

These are the main categories to consider when comparing resale vs new construction homes in Raleigh NC.  One thing that I love about Raleigh is how much variety there is between it and its’ suburbs to choose from, that I’m convinced that there is a home that fits the needs of just about anyone.

For more information on this topic, check out our blog on the most shocking things home owners experience during the buying process, as well as how the NAR Settlement will affect the Raleigh, NC market.

If you need any assistance buying or selling in the greater Raleigh area, we have one of the top teams in the Raleigh area and would love to help you!

Please reach out via our contact information below:

Phone:  919-504-5265

Email:  alison@thewgroupraleigh.com

Website:  www.thewgroupraleigh.com