Buying a home in Houston comes with plenty of choices, and one of the biggest questions we hear from buyers is this: Should I buy a resale home now, or wait for new construction with builder incentives? It’s a fair question, especially with headlines about rate buydowns and closing cost credits.
But will waiting really get you a better deal, or could it cost you more in the long run? Let’s unpack the realities so you can make a confident decision.
The Appeal of New Construction
There’s a reason new homes draw attention. They come with modern design, energy efficient features, and the peace of mind of warranties. And many builders are also sweeting the deal by offering customization, and incentives like rate buydowns or closing cost assistance.
For some buyers, these benefits create real value, especially for those who want a move-in ready home that reflects their personal style.
The Risks of Waiting for “Better” Incentives
It’s tempting to believe that tomorrow’s incentives will be even better than today’s. The truth is – they may not. Builder incentives rise and fall based on supply, demand, and financing conditions. While you wait, construction costs continue to increase and inventory in desirable locations may shrink. Delays are also common, so waiting may mean stretching your timeline further out than expected.
Why Resale Homes Still Make Sense
Resale homes come with their own strengths, many of which new builds can’t match. They’re often in established neighborhoods with mature trees, closer to schools, jobs, and city amenities. Many resale homes can be negotiated for less than asking price, and sellers are increasingly open to concessions. And best of all, you can move in right away without waiting months for construction.
When deciding between new construction and an existing home, it’s important to look beyond the surface perks. Here are the top three reasons why a resale home might be the better move, especially in Houston’s current market:
- Stronger Locations with More Long-Term Value
Resale homes are often located in well established neighborhoods, closer to schools, shopping, parks, and major job centers. These areas typically hold value better over time and offer the kind of community feel that new developments can take years to build.
- Faster Move-In and More Negotiation Room
With a resale, you can usually close and move in quickly, which is ideal if you’re on a timeline. And in today’s market, many sellers are open to negotiating on price, closing costs, or even repairs. Builders rarely offer that kind of flexibility unless you’re buying inventory homes.
- More Character, Bigger Lots, and Better Value per Square Foot
Resale homes often sit on larger lots, have mature landscaping, and include architectural features you won’t find in new builds. On top of that, they often offer more square footage for your money, especially in centrally located neighborhoods.
If you value location, speed, or character, resale may serve you better than a new build.
New Build Incentives vs. Market Reality
Let’s put numbers in perspective. Suppose a builder offers $15,000 in credits or a temporary rate buydown. That sounds significant. But Houston homes appreciate at about 3-4% annually. On a $350,000 home, that’s $10,500-$14,000 in appreciation in just one year. If you wait one or two years, that appreciation could easily cancel out any builder perk. Add the chance of higher mortgage rates, and waiting might cost you more than it saves.
A Closer Look: How Long Until You See a Return?
- Average annual price growth: 3-4%
- Cumulative growth after 3 years: 9-12%
- Selling costs: 6-7%
- Net reality: You’ll generally need to stay in your home around four years to cover costs and see at least an 8% return.
How Buyers Can Educate Themselves
The best way to avoid regret is to do your homework. Go beyond surface-level perks and focus on the full picture of costs, value, and lifestyle.
Practical steps:
- Review builder contracts and resale inspection reports.
- Compare total monthly costs, including taxes, insurance, HOA fees, and utilities.
- Research neighborhood growth, resale history, and schools.
- Walk both new communities and established neighborhoods to get a feel for fit.
Top questions to ask your agent:
- What’s the full monthly cost of ownership for this home?
- How do builder incentives compare with current seller concessions?
- Which neighborhoods are showing the best long-term value?
- What are the differences in energy efficiency and maintenance between new and resale?
- If I wait, what’s the risk in terms of inventory and interest rates?
- How long should I plan to stay to see a solid return?
So, Will You Regret It?
When weighing resale versus new construction, the decision isn’t just about perks; it’s about your goals and timeframe. New construction offers efficiency and customization, but resale wins on location and immediacy. Waiting for “better” incentives may feel safe, but rising costs and rates can outweigh short-term gains.
So, will you regret not choosing new construction or waiting for bigger builder incentives? Probably not, if you buy with clear priorities and a long-term mindset. Houston real estate remains a solid investment if you plan to stay for four years or more. The key is focusing on what matters most to you: location, timing, lifestyle, and long-term financial stability.
Ready to explore your options? At Simien Properties, we help Houston buyers compare real options, not just marketing claims, so you can make a choice you’ll feel good about for years to come.
Contact us today for a personalized consultation and let’s find the home that fits your life, whether it’s a new build or a resale with lasting value. If you have any questions, don’t hesitate to contact your concierge at (281)781-4348, or visit us at Simien Properties.
