New Homes vs. Existing Homes: What Buyers Get Wrong

If you’ve been skipping over newly built homes in your search, you might be working off outdated assumptions.
Let’s clear up some common myths so you don’t miss a golden opportunity.

Myth 1: New Homes Are Always More Expensive

A lot of buyers assume new builds automatically cost more. Not true — especially right now.

According to Census and the National Association of Realtors (NAR), the median price of a newly built home is actually lower than that of an existing home.

Why?
Heather Long, Chief Economist at Navy Federal Credit Union, explains:

“This largely reflects two trends: New homes are getting smaller on average, and builders are doing more price cuts.”

Builders know today’s buyers are price-conscious. That’s why they’re adjusting floor plans and offering discounts to stay competitive.

Myth 2: Builders Won’t Negotiate

Think builders have a “take it or leave it” approach? Think again.

Many are sitting on finished homes they need to sell quickly — and that makes them open to negotiating. They may even sweeten the deal with mortgage rate buydowns, closing cost credits, or free upgrades.

In fact, Zonda reports 75% of new home communities offered incentives on quick move-in homes this past June.

Myth 3: New Homes Lack Quality

Some believe older homes are built better. But quality isn’t about the year a home was built — it’s about the builder.

The National Association of Home Builders (NAHB) says the best way to gauge quality is to:

• Talk to recent buyers from that builder.

• Ask if the builder met their expectations.

• Ask if they’d buy from them again.

Your local agent can also share insight on which builders have the best reputations in your area.

Myth 4: You Don’t Need Your Own Agent

This one could cost you the most. Builder contracts are different from standard resale contracts, with fine print that can heavily favor the builder.

A skilled agent:

• Reviews and explains the contract terms

• Negotiates on your behalf

• Makes sure you get the best deal and protections possible

A Realtor.com survey found buyers of newly built homes rated their personal agents far more helpful than the builder’s representatives during the process.

Bottom Line

Don’t let myths keep you from considering a new build. With more inventory, competitive pricing, and attractive incentives, it’s one of the brighter spots in today’s housing market.

If you’re curious about what’s being built nearby — and whether it fits your budget — connect with a local real estate pro who can walk you through your options.

Amber Johnson, Founder
Pillar Real Estate
805.835.3425
[email protected]
1345 Park St. Paso Robles, CA 93446
DRE# 01925434