When thinking about buying a home in Knoxville, one of the biggest questions you’ll face is whether to buy a new construction home or an existing resale home. The truth is… there isn’t one right answer.
Some buyers automatically assume new construction is more expensive. Others simply don’t want the unknown that can come with an older home. For buyers who want a move-in ready home, new appliances, and modern layouts, new construction can be more appealing.
If you’re getting ready to buy your first home or relocate to Knoxville, here’s what you should consider before deciding: The Ultimate Guide to Buying a Home in Knoxville, Tennessee
Why Location Comes First
Before you start comparing homes or picking out your dream kitchen, take a step back and think about where you want to live.
- Do you want to be close to work?
- Near your kids’ schools?
- Within minutes of shopping, restaurants, or medical facilities?
- Privacy with some land?
One thing that is important to keep in mind is that you can update a kitchen, renovate a bathroom, or change the paint colors, but you cannot change your home’s location. This is why figuring out what matters most to clients is important before touring homes. Once you are able to narrow down the right area, it becomes easier to decide whether a new construction home or a resale home is the right choice for you.
If you’re still getting familiar with Knoxville, our Everything You Need to Know About Knoxville, Tennessee guide is a great place to start before narrowing down where you’d like to live.
New Construction vs. Resale
Once you’ve narrowed down where you want to live, the next question is: should you buy a new construction home or a resale home?
Neither option is better than the other, it all depends on what matters most to you. Some buyers love the idea of moving into a home where everything is brand new. Others are drawn to resale homes because of their character, larger lots, and established neighborhoods. The best value isn’t always the lowest price or the newest home. It is the home that best fits your lifestyle and priorities, and even long term goals.
One of the biggest misconceptions about new construction is that it is always more expensive. Many builders are able to build homes more efficiently by purchasing materials in bulk and offering standardized floor plans. Depending on the market, buyers may even find a new home that costs less per square foot than an existing home.
Some of the biggest differences between new construction and resale is not about the house itself. It often comes down to some key factors like the neighborhood, HOA, lot size, and even how close you would like your neighbors to be.
HOA vs. No HOA
In most cases, if you plan on buying a new construction home, you’re also most likely buying into a community with a homeowner association (HOA). For many buyers, HOAs can be beneficial. HOAs are designed to help maintain the appearance of the neighborhood and protect property values. They often take care of shared amenities and help keep common areas stay well maintained.
On the flip side, not everyone wants the rules that come with an HOA. Some buyers prefer the freedom to use their property however they’d like. Whether that’s parking an RV, raising chickens, avoiding HOA dues, or making updates to their home without needing approval. For those buyers, a resale home outside of an HOA community may be a better fit.
Neighborhoods, Neighbors and Lot Sizes
Another important factor to consider is how much space you want around your home. In East Tennessee, most new construction communities are built in subdivisions, which often means smaller lots and neighbors nearby. While that may not be ideal for everyone, many buyers enjoy the sense of community, sidewalks, and amenities that these neighborhoods provide.
If having a larger yard or more privacy is high on your priority list, resale home may be the better opinion for you. Many established neighborhoods in Knoxville offer larger lots, mature trees, and more distance between neighbors.
Think about how you want to live day to day. Would you enjoy being part of a neighborhood with neighbors close by, or more space and privacy? There is no better option, it’s simply about finding the lifestyle that fits you best.
If you are still not sure what you’re looking for: Before You Buy a Home in Knoxville, Ask Yourself These 7 Questions
Sometimes the Best Choice Isn’t What You Expected
It is important to keep an open mind because sometimes the home that makes the most sense is not the one you imagined when you first started your search. It’s common for buyers to begin their home search with a clear idea of what they want. Some may think that a resale home is the only option, while others won’t consider anything but new construction.
However, once buyers begin touring homes and comparing them, priorities often change. A buyer who was set on an older home may discover that a new construction community can offer the perfect combination of affordability and modern features. On the other hand, someone focused on buying a new home may fall in love with the character, larger lots, and established neighborhood of a resale home.
Keeping an open mind throughout the home search can make all the difference!
Don’t Overlook Builder Incentives
Builder incentives can make a big difference when comparing a new construction home to a resale home. Many builders are currently offering incentives to help buyers save money and make move-in ready homes more attractive.
Depending on the builder and community, incentives can include:
- Assistance with closing costs
- Interest rate buy-downs
- Included appliances
- Window blinds or other home upgrades.
These savings can add up quickly, making a new construction home more affordable than many buyers expect.
Which One is Right for You?
There isn’t a correct answer when it comes to choosing between new construction and a resale home. The best choice depends on your budget, timeline, lifestyle, and even long term goals.
If you’re thinking about buying a home in Knoxville, we’re here to help you compare your options and find the perfect fit. Contact us today to explore your options!
We discuss these topics and more on the Hard Truths with Hardy podcast. Listen to the episode “New Construction vs. Resale Homes: Which Is Better in Knoxville?” for a deeper look at the pros and cons of new construction versus resale homes.