top of page

Sweeney Sells Real Estate Blog

Search

How New Construction Homes Compare to Existing Homes in Sacramento

When considering buying a home, buyers often face the dilemma of choosing between a newly built home and an existing home. Both options have their pros and cons, and the right choice depends on your priorities, lifestyle, and budget. In this post, we’ll compare new construction homes with existing homes in Sacramento, focusing on cost, features, and long-term value to help you make an informed decision.


🏠 1. Cost: What’s the Price Difference?

New Construction Homes:

  • Higher Upfront Costs: New homes often come with a premium price tag due to modern features, new materials, and the latest construction methods. Builders also factor in the cost of land, permits, and the time it takes to complete the project.

  • Potential for Customization: Depending on the stage of construction, you may have the opportunity to customize elements of the home (floor plan, finishes, etc.), which can increase costs.

  • Warranties and Incentives: Many new homes come with builder warranties for the first few years, which can be a cost-saving benefit down the line. Builders may also offer incentives like paying closing costs or upgrades.

Existing Homes:

  • Lower Upfront Cost: Existing homes often have a lower initial cost, especially in established neighborhoods. You may find more affordable homes, but this may come with additional maintenance costs due to the age of the property.

  • Less Room for Customization: Once you’ve purchased an existing home, customization is usually more limited unless you plan on remodeling, which can be costly.

  • Negotiation Opportunities: Buyers often have more room to negotiate the price of existing homes, especially in a buyer’s market or if the property has been on the market for a while.

Conclusion: While new homes tend to be more expensive upfront, they may come with fewer immediate maintenance costs. Existing homes can be more affordable but might require repairs or updates.


🔨 2. Features: What’s New vs. What’s Classic?

New Construction Homes:

  • Modern Layouts: New homes are designed with the latest trends in mind, offering open floor plans, spacious kitchens, and energy-efficient appliances. These homes typically have more flexible and functional layouts.

  • Energy Efficiency: New construction homes often feature energy-efficient windows, insulation, and appliances, which can lower utility costs in the long run.

  • Smart Home Technology: Many new homes are equipped with the latest smart technology—think home automation systems for lighting, security, and climate control.

  • Less Maintenance: With new construction, there’s less need for immediate repairs. Everything from plumbing to roofing should be in top shape, meaning fewer unexpected maintenance costs.

Existing Homes:

  • Character and Charm: Older homes often have unique architectural styles and historical charm, which new homes can lack. Features like built-in cabinetry, hardwood floors, and mature landscaping can add character.

  • Upgrades Possible: Depending on the age and condition of the home, existing homes may offer opportunities for renovation and personalization to fit your tastes.

  • Potential for Maintenance: With older homes, you may encounter issues with the foundation, plumbing, HVAC systems, or roof. These might require upgrades or repairs sooner than in a new home.

Conclusion: New homes typically offer modern designs, energy efficiency, and low maintenance, whereas existing homes can offer more character and the potential for customization.


🏡 3. Long-Term Value: Which Option Holds Its Value?

New Construction Homes:

  • Depreciation Risk: New homes typically depreciate slightly after purchase, especially once the property is sold and the “newness” factor wears off. However, they may still hold value well if they are in desirable areas and are built with quality materials.

  • Neighborhood Growth: New homes are often built in developing areas, which means the neighborhood may take time to develop fully. If the area grows and infrastructure improves, the home’s value could increase over time.


Existing Homes:

  • Stable Neighborhoods: Existing homes are usually located in well-established neighborhoods with mature trees, schools, parks, and other amenities. These factors often support stable or appreciating home values.

  • Potential for Upgrades: By upgrading an older home, you can increase its value significantly. Renovations to kitchens, bathrooms, or other key areas can boost the home's appeal and value over time.


Conclusion: Both new and existing homes can appreciate in value, but new homes may have a slower start due to initial depreciation. Existing homes in established neighborhoods may hold their value better in the short term, but significant renovations could be needed to keep up with market trends.


🎯 Final Takeaway

When choosing between a new construction home and an existing home in Sacramento, there’s no one-size-fits-all answer. If you prioritize modern features, energy efficiency, and minimal maintenance, a new home may be your best choice. However, if you're looking for a home with character, a lower purchase price, and the potential for customization, an existing home could be a better fit. Ultimately, consider your budget, long-term plans, and lifestyle preferences to find the right property for you.


Scott Sweeney

Your NorCal Realtor

M&M Real Estate

BRE Lic# 01938720

Cell: Call/Text 707-330-2324


About Scott Sweeney


SweeneySells

Full Time Realtor 13 Years +

Over 100 Families Served

Top 5% Producing Agent

Buying & Listing Specialist

Contract & Negotiation Ninja

CSUS Business & Marketing Graduate 2006


With quickly serving over a 100 families, Scott Sweeney has become a top 5% producing Realtor in the greater Sacramento area who has helped clients from the Bay Area to South Lake Tahoe. Scott has a Bachelor Of Science in Business Administration, with a concentration in Marketing from CSUS. His education, and extensive background in the hospitality, marketing, and real estate industries, have helped Scott to become one of the leading, and most sought after agents in the area.


Reach out to SweeneySells today, and take the first step towards your real estate goals!

📞707-330-2324




Top Producer 2016-2023


"I appreciate your business & referrals!"


Hours Mon-Fri 9am-6pm

Sat By Appointment

Sun Off


Schedule a call or zoom with us here! 👇




 
 
 

Comments

bottom of page