In recent years, the residential resale market has posed challenges for buyers, to say the least, and now homebuyers are flocking to new construction homes. According to Redfin, 34% of all single-family houses for sale in December 2021 were new construction — the highest share on record!

As the names imply, a pre-construction home is where homes in a development are sold before the completion of construction, while a post-construction home is one that has already completed construction.

With pre-construction, the buyer can be involved in design and construction decisions to a certain extent. You don’t have that opportunity with a post-construction home since it has already been built and is ready to be handed over to its new owner. Let’s look at some more of the benefits of each.

Arguably, the largest benefit of buying pre-construction relates to the pricing. Pricing on pre-construction homes is usually much lower than post-construction. Builders will often give incentives to buyers who are willing to commit to purchasing a home pre-construction. These can be called introductory rates.

Something else to consider is that when you agree to purchase pre-construction, the builder will only ask you to make a small deposit to begin construction, with the rest of their financing or cash being due once construction is complete. This gives buyers time to do things like improve their credit score, so they’ll get a better interest rate or save up for a down payment, all while locking down the purchase price. If home values increase while your home is being built, it won’t affect you, and you’ll essentially get a new home at last year’s prices. Once construction is complete, and you’re able to take ownership, as long as home values have increased, you’ll have instant equity in the home, which is always a good feeling.

Lastly, a huge perk to buying pre-construction is that the buyer is able to give some input on the design of the home. The buyer can usually pick the paint colors, cabinets, flooring, light fixtures, and so on. In some cases, the buyer can make decisions relating to the floor plan of the home to create a home that works best for them. This means that once construction is finished, there won’t be any work to do – other than arranging your furniture and unpacking some boxes, of course.

Just like buying a pre-construction home, buying a post-construction home allows you to skip out on the wild residential resale market full of bidding wars, inspections, and frustration, and get into a brand-new home where you have the satisfaction of knowing that everything is brand-new and never before used. Although pre-construction homes come with a ton of benefits, one of the biggest turn-offs is the long wait time.

Construction times on homes can extend nine months or more, which can seem like an eternity when you’re waiting on your home to be built. Now, with labor and supply shortages causing major delays, Realtor.com reports that the average build time is closer to 14 or 15 months. Since you won’t have to deal with those issues and the uncertainties with a post-construction home, you can close quickly, usually, in the 30-40 days it takes to obtain loan approval since the home is already complete. Not a bad deal!

You’ve read the benefits of pre-construction and post-construction but aren’t sure which is better – that’s okay! There isn’t one correct answer, it really depends on what works best for you and your family.

The most significant factor to consider when deciding whether to choose pre-construction or post-construction is the timing. If you have the time that is necessary to wait for a home to be built, pre-construction is an excellent option. However, if you are looking for a place to live now, obviously, pre-construction is not going to help your situation, and instead, you should buy a post-construction home.

If you are really particular with your home finishes but don’t want to put in the work yourself to make changes to an existing home, pre-construction will be your best bet. If you’re handier and are okay with painting some walls or putting up a new backsplash, go for the post-construction.

With both options, you will have a home in an optimal condition where everything is new. You’ll also have the most up-to-date technology on all of your home’s systems and components. Best of all, you’ll have a home to call your own!