New Construction vs. Resale in Central Florida

Price and Incentives

A new home's list price is only the starting point. Builders often compete with credits toward closing costs, rate buydowns, design allowances, and included upgrades, and those change from community to community and month to month. A resale home is priced against recent nearby sales, so you can negotiate on price directly.

Compare the two on the payment you would actually make, not on the price you would pay.

How Credits Work With Your Loan

Lenders limit how much a seller can contribute toward your closing costs. Fannie Mae's Selling Guide limits seller-paid contributions on conventional loans for a principal residence to 3 percent when the loan-to-value ratio is above 90 percent, 6 percent from 75.01 to 90 percent, and 9 percent at 75 percent or less. That is one lender guideline, not a law, and other loan types have their own rules.

Ask your lender how a builder credit would be counted on your loan before you rely on it.

The Builder's Preferred Lender

Builders often tie their best incentive to their affiliated lender. Federal rules do not ban a settlement provider from offering a discount for using it, according to the CFPB's RESPA guidance, but the CFPB also says requiring a particular provider counts as a referral under RESPA, and that other federal and state laws may add limits.

The CFPB recommends getting more than one Loan Estimate. Get one from an outside lender too, and compare the total cost including the credit.

Monthly Costs Beyond the Mortgage

Newer communities more often carry HOA dues and a community development district assessment, and those affect the monthly payment as much as the interest rate does. Our CDD guide explains how the assessment works and what to ask for.

An established neighborhood may have lower fees or none, which can close a price gap that looked large at first. Homeowners insurance also varies by the home, so get a quote on the specific house whichever way you go.

Timeline and Certainty

An already-built inventory home can close sooner than one that has not been built yet, and delivery dates for a to-be-built home can move. If you are ending a lease or selling a home, that uncertainty is part of the cost. A resale closing follows the contract dates, and it is usually easier to plan around.

Warranty and Condition

A new home typically comes with a builder warranty. Warranties vary by builder, so ask for the written document and read what each part covers and for how long. A resale home has no builder warranty, so age matters more: the roof, the air conditioning, the water heater, and the plumbing all have limited lives, and roof age can affect insurance.

Inspect either kind. On a new build, an independent inspection, ideally at more than one stage, finds problems while the builder still has obligations to address them.

Location and Character

Established homes tend to sit closer in, with mature trees and a neighborhood you can see as it is. New communities tend to sit farther out, with newer layouts and shared amenities, and parts of them may still be under construction. Our best areas guide compares the regions by what you want from the location.

Registering Your Agent

The sales agent at a model home represents the builder. Many builders require a buyer's agent to be registered on the buyer's first visit, and touring without one can limit your options at that community. Ask how the builder handles buyer representation, and get the answer in writing before you tour.