Reno vs. New Construction

Written by Ryan Thompson, Buyers and Listing Agent

Whether you are looking to purchase a new construction or invest in a fixer upper, our team would love to be the helping hand that gets you through the buying process. Coming from a construction background, I have been involved in both new construction and complete remodel projects of many different residential properties.

There are many pros and cons to be considered when making decisions for your next investment. Such differences could be time, finances, involvement, and future maintenance. 

Time is money. A golden rule in the investment world. Maybe time isn’t an issue for you and the longer new build process is worth the wait. In most cases, a house remodel is going to be the quicker option due to cutting out the first third of the process of new construction with grading, footers, and foundation work. This isn’t considering the planning and permitting needed to break ground on the new construction. While yes, you will most likely need a permit on bigger remodel projects, there are less hoops to jump through, resulting in saved time. 

Cash is king. Money plays an ample role in this decision making as well. Trying to avoid spending your hard-earned money at one time on one project? If so, a fixer upper would be a great option. Buying a fixer upper allows you to spend less money on the front end by doing the work yourself or hiring a contractor to do the work for you at a premium. Either option will spread out the total investment of money by making improvements at your own pace as finances allow. On the other hand, you may be ready to sell a house previously remodeled and you have built up equity allowing you to purchase your dream new construction. Even though this is the more expensive route most of the time, it has benefits as well.

Down and dirty. Rehab properties are fun but can take a toll on you mentally and physically as well. Personal involvement can be a significant deciding factor on which type of property you wish to purchase. For some people, getting down and dirty on a fixer upper is worth the time to add personal touches or the future financial benefit. For others, time may be tight with work or other life events that restrict the available time that is needed for a fixer upper. New construction is hands off, other than design meetings and walkthroughs, and is beneficial in the aspect of time and involvement. 

Maintenance on any type of house can be spontaneous, but it is less likely in a new build.  If a break does occur, most builders offer a time sensitive warranty on a new build for any major issues like plumbing, HVAC, and other vital aspects of your home. On the “flip” side, a fixer upper is prone to larger maintenance expenses. For example, a 15-year-old HVAC unit might work fine at closing and continue to perform throughout the remodel process, but the future life of the unit is not guaranteed. A home or manufacturer warranty would cover a new HVAC unit that malfunctions.  

Every house is different. An old house can feel like a new construction after it is complete. A new build may feel like a never-ending project at times. I hope this allows you to see both options and understand the stipulations that come with both new builds and fixer uppers. Our team is your local market expert and we stand as advocates on your behalf to help with the purchase of your next fixer upper, or new build, or land to build your dream home!