Should you build a brand new home or buy resale in Arizona? Here are the pros and cons

By Arizona Home Group

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Are you wondering whether you should buy a brand-new home or a resale in 2025? It’s one of the most common questions buyers ask, and with good reason. Each option has unique advantages and important trade-offs that can impact your wallet, your timeline, and your lifestyle.

Today, we’ll explore the pros and cons so you can choose the path that fits your lifestyle, budget, and timeline.

You can (and should) have representation. The agent in a model home works for the builder, not for you. Fortunately, you’re entitled to your own real estate agent at no extra cost; the builder’s commission already covers it. Skipping an agent doesn’t save you money; it just means you’re navigating the process without someone in your corner. A skilled agent can help you:

• Avoid less desirable lots (like ones backing to busy roads)
• Understand your negotiation options
• Navigate incentives and upgrades
• Ensure the contract terms work in your favor

Why new construction appeals to buyers. New construction offers some compelling benefits, especially for those who love the idea of a fresh start. Here’s what stands out:

1. It’s brand new. New homes offer that fresh, untouched feeling many buyers love. They come with modern finishes and up-to-date features and often include a one-year warranty. Here’s a pro tip: Do your inspection in the 10th or 11th month, not right after closing. That way, you can catch any settling issues before the warranty ends.

2. You get to customize it. From flooring and countertops to paint colors and layouts, new builds offer customization that resales can’t. Want to skip the design decisions? Opt for a spec or inventory home; these are already built or nearly complete with finishes chosen by the builder (usually in line with current trends).

3. Builders are offering serious perks. In today’s market, many builders are offering 4.99% interest rate locks and covering most or all of your closing costs as long as you use their preferred lender. These incentives can save you thousands.

But new construction has trade-offs too. While the appeal is real, there are important considerations to keep in mind:

1. Longer build times. If you’re building from scratch, expect to wait 8 to 12 months. That timeline doesn’t work for everyone, especially if you need to move quickly.

2. Construction chaos. Buying into a new subdivision means you’ll be dealing with dust, noise, and nails in your tires until the area is fully built out. That can take a year or more, depending on the phase.

3. Landscaping is on you. Builders typically only finish the front yard. You’ll need to budget for the backyard landscaping, which can be costly, and if you want trees or grass, it’ll take time to grow. Dirt lots aren’t ideal if you have pets or kids.

4. Pools are pricey and not ROI-friendly. Building a pool? Be ready to spend around $70,000, but it may only appraise for $15,000–$20,000 in value. Unless you’re planning to live there long-term, the return on investment just isn’t there.

5. Hidden costs add up fast. Think refrigerators, ceiling fans, window treatments, upgraded paint finishes, and even washers and dryers. Most of these items are not included in a standard build, and you’ll need to pay for them out of pocket, often right after closing.

If you want a move-in-ready home with mature landscaping, more negotiation room, and fewer surprises, resale may be best. If you prefer brand-new finishes, customization, and today’s builder incentives, new construction could be the way to go. Either way, work with a trusted agent to guide you, negotiate smartly, and avoid costly mistakes.

If you’re unsure which path is right for you, or just want expert insight tailored to your situation, don’t hesitate to reach out at (602) 571-3730 or AHGadmin@gmail.com. We’re happy to walk you through your options and make sure you feel confident every step of the way.