New Construction Versus Existing Home: Which Way To Go?

Vickie Pizzarelli, Broker Associate for Engel & Völkers East Greenwich and Engel & Völkers Barrington East Bay, Rhode Island weighs in on the benefits of buying a new construction home versus an existing dwelling.

“The benefit of buying a new construction? It is new. You may have an opportunity to put your own individualized touch on it. In Rhode Island, the property is warrantied for a year per contractor law.

The drawback is you won't have matured landscaping and perhaps some upgrades that were not in your budget.

You really need to do your homework about the builder. Find a realtor that knows new construction. If they are not experienced there may be questions not asked that should be.

The majority of buyers purchase an existing home. You may have a home that has been lived in for some time and the kinks have been worked out. The sellers may have enhanced the property with exciting improvements.

However, you are buying the unknown. This is why it is extremely important to get a home inspection. Not that the home inspector can tell you everything, but at least you can make an educated decision on what you are buying.

Again, make sure you have an experienced realtor help you. They may spot things a buyer may not notice and negotiate fixing or getting a lower price due to the deficiency.

With older homes you have to be aware there could be centuries of previous owners. In Rhode Island, we have homes that date back centuries. I look to see if the windows are updated and if so how long ago, as that is a concern for lead paint. Older windows with the ropes can leave residue of lead dust on the windowsills.

Older tile in bathrooms and kitchens should be intact and not chipping.

Asbestos was used in paint and the adhesive that could be hazardous. Some old tile floors may have asbestos in the glue to lay the tile. Some homes have asbestos siding on the exterior that should not be chipping. There could be knob and tube wiring -a fire hazard which can prevent you from getting homeowners insurance. I would be sure they have an inspector familiar with older homes.

Inspections can be stressful especially if it is your first home. When things get pointed out by an inspector it can be very overwhelming. Also, the financing part buyers tend to get frustrated with all the documents they need to provide. I always say if you were lending 1,000's of dollars don't you want to be sure that person can pay you back?

Ask who the builder is and ask to see previous work even if you have to drive by. Get references and use experienced Realtors that know new construction. The buyer's realtor may not ask the right questions or assumes what is included with the new build. Get a spec sheet and go over it and understand it. You would be surprised at what you think is customary to be included in a new build that is not.

When you are buying or selling real estate everyone is suddenly an expert. They will have advice and opinions that can drive you nuts. Remember each of those people had their own experience -- that does not mean it will be yours. Every home is different, every loan is different, everyone has their own story to tell.

Whether new construction or an existing home purchase, make it your story and your happy ending.”