New construction:

The biggest advantage is the ability to customize parts of the house. E.g, if you want your counters a certain color, or you want a certain brand of appliances around the house, you can have it before you start living in the home. However, many times there is a cost associated with choices.

Of course, this means that houses are not ready to move in. Buyers need to work with builders to get possession, and there may be additional construction ongoing in the area even after moving in.

Most people who want to take advantage of new construction will follow builders’ projects around the area and find projects they like. Drive through projects that are a few years old to see how the builder’s construction is aging with time.

However, without enough research, jumping into a new construction project is like buying a car without test-driving it.

New construction also comes with warranties on many parts like appliances, counters, cabinets, and paints. This does provide peace of mind on large expenses, but still, small issues like a flickering light bulb would NOT be covered. You’d still need to be handy enough for such situations.

<aside> 💡 No matter what the age of the home is, expect to be handy and put some effort into maintenance. Take it as a cost of home ownership. There is no way to avoid it except by renting.

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Existing construction:

There is an often-used saying in real estate: If a house has been standing in good shape for a hundred years, there is a good chance it will stand for a hundred more.

Older houses will have signs of deterioration, no doubt, but it is easier to identify parts of the house that are holding up well, with good materials used in construction, and find what needs repair. Independent home inspectors need to be hired to identify anything that could be dangerous or violate building codes.

Identify which parts need to be move-in ready (for most people this would be kitchens and master bedrooms) and which can be handled as projects in later years.

Here are some rough estimates of what it takes for a project (in Seattle and surrounding areas)

• Remodel kitchen (appliances + counters + cabinets) : $150,000
• Remodel a full bathroom: $10,000 (does not include moving fixtures. E.g. moving a tub from one corner to another)
• Replace roof : $15,000
• Repaint a 2-storey house: $10,000
• Remodel large bedroom (update closets, repaint walls, replace flooring): $40,000
• Add a room and extend the house: $80,000