happy couple decorating their new construction home

Pros and Cons of Building a House

Lombardo Living

We’ve spent more time at home than ever during the past year. Over the past year, you may have pondered building a new home —especially if you’ve been cooped up with kids or pets crowding your new “office.” There are a variety of reasons to build a new construction home, from customization options to energy efficiency. Our list below provides 5 reasons why building a new home is the right choice.

Benefits of New Construction Homes

Newly built homes come with an assortment of pros and cons to compare.  Depending on what you’re looking for in a home, the benefits of a new construction home could be perfect for you and your family.


It goes without saying that the most appealing part about building your own home from the ground up is customization. From the homesite your home is built on, to the exterior colors and design, to interior layout and options, you have a plethora of choices to make your new home perfect for your lifestyle. When you buy a new construction home, you won’t have to make these personalizations as an additional purchase after moving in, which can sometimes lead to discovering underlying issues and additional expenses. Too many options leading to stress and uncertainty? We have an interactive design tool in both Michigan and Missouri that allows you to customize many of your options before meeting with a sales manager. Our experienced team members, from your Sales Manager to the Design Consultants at our Design Studio in Michigan and Missouri, will help you select options that best suit your family’s needs, as well.

Lower maintenance

While new construction homes still require everyday homeowner maintenance, new homes are built to meet current building codes and will have the most up-to-date technology and finishes, meaning they’ll last longer than a home full of repairs or heavy maintenance issues. It also means less stress and less money spent on that maintenance.

Lower energy costs

Lower energy costs. With new innovations in energy efficiency coming along every day, building a new home means taking advantage of those innovations to lower your energy use. Insulation, heating and cooling, and appliance options can all affect the energy consumption of your new home. A home that’s already built will likely need many upgrades before it can reduce your carbon footprint, while you can ensure those options are selected from the start when you build a new home.

Not only will a new construction home fit into your current life rather than have you adapt your life to it, but this will be a home that no one else has lived in yet. It will be a blank slate, just for you and your family, without any surprise that can be found in older homes.

cambridge manor front exterior of home

Disadvantages of New Construction Homes

New construction homes are not all rainbows and butterflies. There are some disadvantages to them you should be aware of.


New construction homes often come with a higher price tag compared to established homes.The higher price point often comes from the price of the land, materials, labor, and profit for the builder. The price can also rise and rise depending on the amount of customizations you decide to make.


The timeframe for new house construction can vary based on many factors, which people often consider as reason not to build a new home. However, after making the decision to build a new home and establishing the timeline of when it will be completed, you can plan other aspects of your move, including packing, travel, potential job hunting or school transfers, and the resale of your previous home.

Lack of Established Community

New construction neighborhoods are brand new. They haven’t been around since the 80’s. Every neighbor you will have in the neighborhood will be just like you: new to the neighborhood. It could take time for schools, parks, and local businesses to develop in the area. Do your research on the area and ensure there are amenities you will want in the community.


In many cases, new construction homes are built and sold without complete outdoor features, or even landscaping. Your new home could be sitting on a lot of sand, waiting for grass to be planted. You might need to invest more capital to put in grass, bushes, shrubs, or trees. Be sure to ask your homebuilder if their new homes come with landscaping on the property.

Financing Considerations

You can use a traditional mortgage (conventional) to purchase a new construction home. This involves securing financing from a bank, mortgage company, or credit union. The mortgage terms, such as interest rate and repayment period, will vary. They will ultimately depend on the loan program, the company you are applying for financing from, and your qualifications as a borrower.

Traditional Mortgages

You can use a traditional mortgage (conventional) to purchase a new construction home. This involves securing financing from a bank, mortgage company, or credit union. The mortgage terms, such as interest rate and repayment period, will vary. They will ultimately depend on the loan program, the company you are applying for financing from, and your qualifications as a borrower.

Construction-to-Permanent Loan

Also known as a C-to-P or Single-Close loan, construction-to-permanent loans allow you to finance the construction of the home and also its mortgage. During the construction phase, you will make interest-only payments on the funds disbursed to your home builder. Once construction is finished, the loan will convert to a traditional mortgage with a regular principal and interest payment.

FHA 203(k) Loan

An FHA 203(k) loan is backed by the FHA. It is designed for people who want to purchase a home that needs significant repairs or renovations, including new construction homes. With this option, you are provided with funds for both the purchase price and rehabilitation of the home.

VA Construction Loan

Qualifying veterans or active-duty service members may be eligible for VA construction loans. This option allows you to finance the construction of a new home with great terms, similar to a construction-to-permanent loan. These loans are typically guaranteed by the U.S. Department of Veteran Affairs.

USDA Construction Loan

USDA Construction loans are backed by the U.S. Department of Agriculture. They are designed to help individuals in rural areas with financing new construction homes. Eligibility comes down to your property being in certain locations and you (the borrower) meeting income limits.

Jumbo Loan

Jumbo loans are for high-end, luxury homes with values exceeding loan limits set by government-backed programs like VA or FHA loans. These loans provide financing for higher-priced houses that couldn’t be covered under a traditional loan. These typically have stricter qualification criteria like larger down payments.

established home front facade

Benefits of Buying an Established Home


Established, or, resale homes often come at a lower price point than new construction homes. As outlined above, new construction homes have a bevy of items to cover, whereas a resale home is a bit more straight-forward. You may be able to find a larger home at a lower price point compared to new construction.

Established Neighborhood

Established homes come with established neighborhoods. This can be good or bad, but most times, it is a massive benefit. Established neighborhoods come with schools, parks, shopping centers, and community facilities. There is often a strong sense of community and neighborliness you cannot find in a new construction neighborhood.

No Construction Delays

You can move right into your new home, no construction required. You may wish to update the home in some capacity, but you are not waiting for a roof to be put on, or rooms to be framed.

Established Character

Established homes often come with recognizable build styles and character. The architectural style can reflect historical time periods and are often never “out of style”. If you appreciate character or historical architecture, an established home will offer more options.

Disadvantages of Buying an Established Home

Older Infrastructure

Established homes are older in nature. They could have old electrical, plumbing, and HVAC systems. Each of these require maintenance, repairs, and upgrades. This can add to the overall cost of homeownership and should be considered before buying a resale home.

Maintenance and Repairs

There is a higher likelihood of a resale home needing maintenance of repairs early-on in your homeownership. You may need to spend time or additional money to fix or replace systems in the home. Consider things like foundation, roofing, and windows. These are high-ticket items to repair or replace.

Limited Warranties

New construction homes often come with some sort of warranty on the home’s build integrity. However, established homes rarely come with a warranty, and if they do, it is for a very limited time. You are able to purchase a home warranty on your own, but that will come out of your own pocket and should be factored into the overall cost of ownership.

Less Energy Efficiency

When buying an established home, you are relying on the past owner to have updated items like HVAC, electricity, windows, and appliances. You could end up buying a home that has not been updated in 40 years! This could lead to higher utility bills. Upgrading to more energy-efficient options may be necessary to reduce energy consumption and costs.

Location Limitations

Resale homes may be limited in terms of location choices. If you have a preference on town or school district, you may be stuck with the established homes in the area. If you do not like the architectural style or age of the homes, you could be displeased with them. It could be more challenging to find an established home that meets all of your needs.

Final Word

Even if you start your new home search set on finding that perfect move-in ready home already built, building from start to finish guarantees you’ll get exactly what you want and need in the location that you want. Working with a professional can help you decide what the right move will be for you and your family. If you’re interested in building with Lombardo, you can contact us for more information on new home builds in Michigan and Missouri.


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