Short answer: New construction and resale homes each fit different goals. New construction offers customization, warranties, and energy efficiency, but base prices are rarely negotiable and timelines run longer. Resale homes offer established neighborhoods, negotiable terms, and faster move-in, with more potential for maintenance surprises.
What are the pros and cons of new construction?
Pros: full customization, systems under warranty, modern energy efficiency, and builder incentives like rate buydowns or closing cost credits.
Cons: the base price is rarely negotiable, and you often start with a bare lot and no mature landscaping.
What are the pros and cons of buying a resale home?
Pros: established neighborhoods with mature trees, negotiable price and terms, a known move-in timeline, and more variety in lot size and location.
Cons: possible deferred maintenance, and inspections can bring surprises.
What hidden costs come with new construction?
Lot premiums, structural options, landscaping, and design center upgrades can add up quickly, sometimes tens of thousands of dollars beyond the base price. New developments may also have HOA startup fees. Always compare the builder's preferred lender against outside options.
How long does new construction take compared to resale?
New construction typically takes six months to a year or more, and weather and supply delays are common. A resale home usually closes in thirty to forty-five days once you're under contract.
How is negotiating different?
With new construction, you usually negotiate incentives rather than the base price. Bring your own buyer's agent, because the onsite sales agent represents the builder. With resale, price, closing costs, and repairs are all negotiable, though multiple offers can shift leverage quickly in busy south metro markets.
What do buyers overlook about resale homes?
- Mature landscaping and trees
- Established neighborhoods with a track record
- Often a better lot for the price
- A faster path to move-in
- Clear comparable sales and price history
Frequently asked questions
Is new construction or resale better?
Neither is better for everyone. The right choice depends on your timeline, budget flexibility, and how much certainty and customization you want.
Can you negotiate the price of a new construction home?
Builders rarely lower the base price, but incentives like rate buydowns, closing cost credits, or upgrades are often negotiable.
How long does it take to build a new home in the Twin Cities?
New construction typically takes six months to a year or more, and weather or supply delays are common.
Do I need my own agent for new construction?
Yes, it is wise to have your own buyer's agent, because the builder's onsite sales agent represents the builder.
Buying in Lakeville or the south metro?
Get local guidance on pricing, offers, and strategy before you write your next offer.
Search Lakeville homes Call or text 952-491-3685Selling first? Find out what your home is worth.
Browse every Home School episode
Liz Sandwick, REALTOR® | Coldwell Banker Realty | 17305 Cedar Ave, Lakeville, MN 55044 | 952-491-3685 | Liz@CBRealty.com
This article is general information, not legal, tax, or financial advice. Equal Housing Opportunity.