New Construction vs. Resale When Relocating to Tennessee

If you're moving to Tennessee from another state, there's a good chance you'll eventually face this decision:

Should we buy new construction or an existing home?

And honestly?

There are things I love about both.

New construction can be incredibly appealing when you're already dealing with the logistics of an out-of-state move. Everything is new, major repairs may be less likely right away, and some builders offer warranties.

But resale homes can give you established neighborhoods, mature trees, larger lots, unique locations, and features that can be harder to find in a brand-new development.

So which one makes more sense for your Tennessee relocation?

Let's compare them.

New Construction: The Pros

1. Everything Is New

This is the obvious one.

New roof.

New HVAC.

New appliances.

New plumbing.

New electrical systems.

For someone moving hundreds of miles away, there's something comforting about knowing you aren't immediately inheriting a 17-year-old HVAC system or wondering how much life is left in the roof.

That doesn't mean new homes can't have issues ~ they absolutely can ~ but you generally aren't dealing with decades of normal wear and tear.

2. Builder Warranties May Give You Additional Peace of Mind

Many builders provide some form of warranty coverage, but the exact coverage, exclusions and length depend on the builder and your contract.

Don't assume every new Tennessee home comes with identical warranty protection.

Before purchasing, ask:

• What does the warranty cover?

• How long does each type of coverage last?

• What isn't covered?

• How are warranty requests submitted?

• Who performs repairs?

• Are there deadlines for reporting issues?

Get the warranty information in writing and actually read it.

3. You May Be Able to Choose Finishes

If you're buying early enough in the construction process, you may have choices involving things like:

• Flooring

• Cabinets

• Countertops

• Paint

• Fixtures

• Hardware

• Appliances

• Exterior selections

This varies dramatically by builder and community.

Some builders offer extensive customization.

Others give you a few predetermined packages.

And if the house is already almost complete, your choices may be limited or nonexistent.

4. Builders May Offer Incentives

Depending on the builder, community and current market, you may encounter incentives involving closing costs, interest-rate programs, upgrades or other buyer benefits.

But don't look at the incentive in isolation.

A big advertised incentive doesn't automatically make a home a great deal.

We still want to look at the purchase price, financing terms, property, location and overall cost.

Also pay attention to whether an incentive requires you to use a particular lender or title company.

5. New Construction Can Be Easier to Shop From Out of State

This can be a major advantage for relocation buyers.

If a community has several available homes or homes currently being built, we may be able to explore floor plans, lots, finishes and availability before you even arrive in Tennessee.

That can make the process feel a little more predictable than waiting for the perfect resale property to hit the market.

New Construction: The Cons

New doesn't automatically mean better.

There are some tradeoffs you need to understand.

1. The Lot May Be Smaller Than You Expected

A lot of people move to Tennessee dreaming about space.

Then they visit a brand-new development and realize the homes may be much closer together than they imagined.

That's not true of every new community, but it's something to pay attention to.

Look beyond the model home.

How close are the neighboring houses?

What's behind your lot?

Could another phase eventually be built behind you?

How much usable backyard do you actually have?

If acreage and privacy are major reasons you're moving to Tennessee, resale properties may give us more options.

2. The Neighborhood May Still Be Under Construction

Your house might be finished.

Your neighborhood might not be.

That can mean construction traffic, unfinished lots, noise, dust and changing surroundings for a while.

Also ask about future phases.

That beautiful empty field behind the house may not stay an empty field forever.

3. The Model Home Is Not Necessarily What You're Buying

Model homes are designed to look good.

They may include upgraded flooring, cabinets, lighting, landscaping, trim, appliances and other options that aren't included in the base price.

When touring a model, ask:

“What in this house is standard, and what is an upgrade?”

That's a very important question.

A home advertised at one price can look quite different once you've added the selections you actually want.

4. Upgrades Can Add Up Quickly

A few thousand here.

A few thousand there.

Better cabinets.

Different countertops.

A covered patio.

Premium lot.

Upgraded flooring.

Suddenly the home you thought fit comfortably within your budget has climbed significantly.

Before falling in love with upgrades, establish your maximum all-in price.

Do You Still Need a Home Inspection on New Construction?

I recommend discussing independent inspections even when the home is brand new.

New does not mean perfect.

Construction involves a lot of people, materials and moving pieces.

Depending on the stage of construction and your contract, buyers may consider inspections at different points in the process.

Tennessee also has residential permitting and inspection requirements in applicable jurisdictions, but government inspections and an independent inspection performed for you are not necessarily serving the same purpose.

Don't assume that because a home passed required inspections, there's nothing else worth evaluating.

Should You Have Your Own REALTOR® With New Construction?

This is a big one.

When you walk into a builder's model home or sales center, the person working there may be extremely helpful and knowledgeable about the community.

But remember:

The builder's representative represents the builder's side of the transaction ~ not automatically yours.

Having your own REALTOR® gives you someone focused on helping you evaluate the transaction from the buyer's perspective.

That can include helping you think through:

• Pricing

• Incentives

• Lot selection

• Contract terms

• Upgrade costs

• Inspections

• Walk-throughs

• Timelines

• Comparable properties

• Resale considerations

And ideally, involve your REALTOR® before your first visit or registration with the builder.

Builder policies regarding REALTOR® representation and compensation can vary, so don't assume you can tour alone first and simply add an agent later.

If you're relocating to Tennessee and want to tour new construction, reach out before you start visiting communities.

Resale Homes: The Pros

Now let's talk about existing homes.

For some relocation buyers, resale is actually a much better match.

1. Established Neighborhoods

With an existing home, you can usually see what the neighborhood already is.

The houses are built.

The streets exist.

The trees have grown.

You can see what's behind the property.

You have a better idea of what the surrounding area actually looks like.

For an out-of-state buyer, that can provide a lot of valuable context.

2. You May Find Larger Lots

If your Tennessee dream involves:

A bigger yard.

Mature trees.

A detached garage.

A workshop.

An acre or two.

More distance between neighbors.

Resale homes may open up considerably more possibilities, particularly as we move outside newer suburban developments.

3. More Character

Not everyone wants a brand-new house.

Maybe you want hardwood floors.

A brick exterior.

A big front porch.

Established landscaping.

An older downtown nearby.

Or simply a house that doesn't look exactly like the one next door.

Existing homes can offer features and character that may be difficult ~ or expensive ~ to recreate in new construction.

4. You Can See the Finished Product

There's no imagining what the neighborhood will look like when it's done.

You can walk through the actual house.

See the actual backyard.

Drive the actual street.

Look at the surrounding homes.

For someone relocating from another state, that certainty can be valuable.

Resale Homes: The Cons

1. Major Systems May Be Older

This is probably the biggest consideration.

Depending on the age of the home, you'll want to investigate the condition and remaining life of things such as:

• Roof

• HVAC

• Water heater

• Windows

• Plumbing

• Electrical systems

• Appliances

• Crawlspace or foundation

• Septic system, if applicable

A resale home may cost less than a comparable new home but require more maintenance over the next several years.

That's why inspections and understanding the property's condition are so important.

2. You May Want to Update It

Sometimes the house is structurally great...

…but the kitchen looks like 2004 called and wants its cabinets back.

You may want new flooring, paint, countertops, bathrooms or fixtures.

That isn't necessarily a bad thing.

In fact, some buyers would rather purchase an existing home in a location they love and update it over time.

Just include those costs when comparing it with new construction.

What About Rural Tennessee?

This is where resale often gets interesting.

If you're moving to Tennessee because you want acreage, privacy, a workshop, room for animals or simply more space between you and your neighbors, existing properties can dramatically expand your options.

But rural homes also introduce additional things to investigate.

Depending on the property, we may need to think about:

• Septic systems

• Wells

• Internet availability

• Easements

• Private roads

• Outbuildings

• Land restrictions

• Flood zones

• Drainage

• Property maintenance

A new subdivision and a 15-year-old house on five acres are two completely different versions of Tennessee living.

Neither is automatically better.

New Construction Might Be Better If...

You may lean toward new construction if you:

• Want fewer immediate maintenance concerns

• Prefer newer finishes

• Like modern floor plans

• Don't mind a subdivision

• Want builder incentives

• Prefer a more predictable out-of-state search

• Don't want a major renovation project after moving

Resale Might Be Better If...

You may lean toward resale if you:

• Want a larger lot

• Prefer mature landscaping

• Want an established neighborhood

• Love older homes or unique features

• Want more rural options

• Care more about location than having everything brand new

• Don't mind updating a home over time

So Which One Is Cheaper?

Don't assume resale is always cheaper.

And don't assume new construction is always more expensive.

You have to compare the whole deal.

With new construction, consider:

Base price + lot premium + upgrades + financing + HOA + future taxes + anything not included.

With resale, consider:

Purchase price + immediate repairs + expected maintenance + renovations + financing + HOA, if applicable.

Sometimes the new home wins.

Sometimes the resale home wins.

Sometimes the slightly more expensive house is actually the better long-term fit.

The Biggest Mistake Relocation Buyers Can Make

Don't decide:

“We're only buying new construction.”

or

“We would NEVER buy in a new neighborhood.”

before you've explored both.

If you're moving from another state, you may be surprised by what's available in Tennessee.

I've found that it's usually better to start with your priorities:

Budget.

Location.

Lot size.

Commute.

Lifestyle.

Maintenance tolerance.

Must-haves.

Then we can see whether new construction, resale ~ or both ~ fits those priorities.

Relocating to Tennessee?

If you're planning a Tennessee move, I can help you compare new construction communities with existing homes so you're not making the decision based solely on pretty model homes or listing photos.

And if you want to explore new construction, reach out before visiting the builder.

That gives us the opportunity to discuss the community, builder, pricing and representation before you register or tour.

Whether you're moving next month or you're still a year away, we can start narrowing down what kind of Tennessee home makes sense for you.

Taylor Brianne Smith, REALTOR®
Licensed in Tennessee & Kentucky
Keller Williams Premier Partners – Tennessee
Office: (615) 822-8585
Cell: (615) 423-8915
Website: TayBriSellsTN.org

Builder incentives, warranties, contracts, representation policies and availability vary. Buyers should review the specific builder's documents and consult appropriate professionals regarding legal, financial and inspection questions.