When buying a home, one of the first major decisions homebuyers need to make is whether or not they’re going to prioritize a newly built home or an existing property. Both types have advantages and potential drawbacks and the right choice typically boils down to lifestyle and long-term goals. New construction communities in suburbs like Elkhorn, Gretna and Bennington often attract buyers who prioritize modern layouts and low-maintenance living. Long-standing neighborhoods found throughout Midtown, Dundee, Benson and West Omaha often attract those seeking mature trees, character and a sense of history and established community.
While neither option is inherently “better” than the other, it’s important to understand the benefits and trade-offs of each choice. Understanding how the differences between new construction and existing properties align with your budget, lifestyle, and personal preferences can help you make a successful move that will support your next chapter of life! Let’s break it down.
Let’s Talk About New Construction Homes in Omaha
New construction homes have become increasingly popular throughout the Omaha metro region, especially when it comes to growing areas such as Elkhorn, Gretna, Bennington and northwest Omaha. New construction homes have either recently been completed or are being built specifically for a buyer. These homes are brand-new and have never been occupied. Many are situated in master-planned communities that also boast parks, walking trails, community pools and other appealing amenities.
Advantages of New Construction Homes
When it comes to new construction, one of the biggest advantages is the ability to enjoy updated features and modern, open layouts. Open-concept floor plans are popular, as well as spacious kitchens, designated home offices, large closets and more. You might also find that many new construction homes have energy-efficient systems in place already. To summarize, buyers of new construction homes can expect:
- Brand-new appliances, roof & major systems
- Modern, open-concept floor plans designed for modern lifestyles
- Smart home features + updated tech are often included
- Builder warranties can provide added peace of mind
- Community amenities are common for newer developments
In some cases, buyers may even have the ability to personalize finishes such as flooring, countertops, paint colors and cabinetry. Everything being new to begin with means that homeowners can typically expect fewer repairs and lower maintenance costs during the first years of ownership and builder warranties can also help provide added confidence. If smart tech integration is important to you, it’s not too difficult to find new construction homes pre-wired for automation.
Potential Considerations of New Construction Homes
As with anything, new construction also has its potential drawbacks. These homes often come with a higher price tag and smaller lot sizes. Upgrades can quickly add to the overall cost and new neighborhoods will take time to benefit from the shade of mature trees and established landscaping. During the first several years, homeowners may find that nearby construction activity is a potential nuisance as the community continues to expand. “Suburban sprawl” can also be a shock for those who are used to living in the heart of the city and who have to get used to longer commutes. Keep these potential considerations in mind:
- Higher purchase price compared to existing homes
- Neighborhood construction may be ongoing for years
- Longer potential commute times to established employment centers
- Less architectural diversity and character
Other things to note when considering new construction homes are hidden and additional fees, such as purchasing a refrigerator, washer and dryer, or even window blinds. Buyers might also need to account for landscaping in their front and backyards and potential HOA capital contribution fees. When creating a budget, consider all of these factors to help avoid unexpected surprises.
Let’s Talk About Existing Homes in Omaha
Naturally, existing homes make up a significant portion of Omaha’s housing inventory and can be found across all established neighborhoods. If you’re eager to call Dundee, Benson, Aksarben/Elmwood Park, or Midtown home, then you’re likely honing in on existing homes on the market. These houses can range from charming historic houses to homes built within the last couple of decades. This offers buyers a wide range of styles and locations (as well as price points) to shop from.
Advantages of Existing Homes
When it comes to existing homes, one of the most sought-after advantages is the character and personality that they can provide. From features like hardwood floors, custom built-ins, mature landscaping and unique details that are difficult to replicate, buyers have the potential to fall instantly in love with a specific home. Established neighborhoods can offer larger trees, convenient access to shopping and restaurants and a stronger sense of community right from the jump. In some markets, buyers may also notice greater affordability or more square footage for their budget compared to new construction lots. In a nutshell, existing homes can offer:
- Wider variety of price points & neighborhood options
- Greater architectural character and individual identity
- Potential for more square footage within the same budget
- Move-in timelines may be shorter
- Established communities & closer proximity to schools, shopping, entertainment, etc.
When choosing an existing home and established neighborhood, buyers can get a clearer picture of a school district, local traffic and the general community before they buy. If the property is move-in ready, the buying and closing process may be much faster than having to wait months for a new build to be completed.
Potential Considerations of Existing Homes
While charming features and spacious backyards are nice, older homes may also show their age with additional maintenance. This can affect roofs, HVAC systems, plumbing, and electrical components – all of which have a lifespan. Depending on the house, buyers might have to sacrifice on kitchen size, fewer bathrooms, or layouts that aren’t completely in-line with modern preferences and family living. Energy efficiency can also vary significantly depending on the age of the property. Keep these things in mind when shopping existing properties:
- Hidden issues that might not be apparent without a thorough inspection
- Lower energy efficiency leads to higher utility costs
- Cosmetic updates and renovations might be needed
- Potential for outdated layouts and smaller kitchens
If you don’t mind contributing some sweat equity into an existing home, then you may find that you can update, renovate and repair an existing house into the home of your dreams. The costs associated with such endeavors should be considered before buying so there are fewer surprises to contend with.
Which Option is Best for You?
Depending on your lifestyle, family size and day-to-day routine, you may find that either an existing property or a new build is the clear standout for you. There is no one-size-fits-all approach to home buying but here is a breakdown of which type of buyer may be more inclined towards a particular home and why.
First-Time Buyers
First-time buyers often prioritize affordability and minimizing unexpected expenses that come with home ownership. However, this doesn’t lend itself to a clear cut answer all the time. On the one hand, existing homes can provide buyers with a larger variety of price point options and therefore, a lower entry point. For buyers willing to tackle cosmetic updates, it’s sometimes easier to build equity more quickly while staying within your budget with an existing home. On another hand, new construction can be appealing to first-time buyers who prefer predictability and don’t mind a premium. You’ll benefit from new appliances, a new roof, updated HVAC systems and builder warranties that can lend themselves to fewer immediate repair concerns. This peace of mind can make a first home purchase less stressful. Many new communities also offer smaller floor plans designed with entry-level buyers in mind.
Growing Families
New construction homes are especially popular amongst families, as they tend to feature open-concept floor plans, spacious kitchens, multiple bathrooms and flexible spaces that can be used as home offices, playrooms or even guest rooms when the mother-in-law swings by to help! New subdivisions may even offer family-friendly amenities such as walking trails, pools, parks, playgrounds and more. Families seeking modern features and community amenities may prefer new construction properties, while those who are seeking more established surroundings and larger lots may find themselves gravitating towards an existing build. Existing properties typically have the edge with mature trees, locations closer to established schools, nearby recreation and shopping and neighborhood communities that have been developed over the course of decades versus a handful of years. Weigh your family’s lifestyle and priorities to decide which is right for you!
Busy Professionals
Professionals know what it takes to balance demanding careers and convenience can make or break a home buying decision! New construction homes appeal to buyers who have little time (or desire) to manage renovations and unexpected repairs. Moving into a newly constructed home means your appliances and major systems are brand new, so you can spend more time using them and less time repairing them. Updated features like smart-home tech, dedicated office spaces and energy-efficient systems can also complement today’s flexible work from home and hybrid environments. On the other hand, existing homes typically have an edge when it comes to location. Younger professionals may prioritize being situated close to the action of Downtown Omaha, Midtown or Aksarben Village. Living near these employment and entertainment districts can reduce commute times and provide stress-free access to popular restaurants, nightlife and cultural attractions in Omaha.
Empty Nesters and Retirees
Lifestyles change as the years go on and one of the biggest changes occurs when your kids fly the coop to college or to their new career path or when you retire from decades of employment. Empty nesters and retirees typically find themselves downsizing as their needs change, along with a desire to reduce upkeep. New construction homes can be appealing for single-level living, modern accessibility features and minimal maintenance concerns. Community amenities can also make aging at home more enjoyable. Existing homes are appealing for those who are downsizing but who don’t want to sacrifice landscaping and an established neighborhood. Retirees may find that living closer to family, longtime friends, and medical facilities makes life more convenient. Depending on what your next chapter looks like, one option might stand out!
Buyers Who Love Character
Some buyers want a home that has personality, which is where existing homes truly shine. Established properties in historic neighborhoods across Omaha such as Dundee, Benson, Midtown and more feature living spaces filled with architectural details and craftsmanship that is difficult to replicate. From original hardwood floors, built-in cabinetry, crown molding and unique floor plans, these charming homes have their own sense of individuality. Some builders incorporate custom finishes and architectural variety into their new construction communities, though these homes typically emphasize contemporary styles and functionality. If you are drawn to the unique qualities that make so many older homes one-of-a-kind, then looking at existing properties will be your best bet of finding a house that feels like home.
Why Working with a Local Realtor Can Help
Whether you’re in the market for a brand-new open-concept build in Omaha or you’re dreaming of an established property with mature trees, partnering with a knowledgeable local real estate professional can help simplify the home buying process and ensure that you’re making an informed decision. Our team of local realtors at NP Dodge Real Estate can help you get the insider scoop on the nuances of the market, neighborhood trends, development plans and pricing differences.
Buyers who are interested in new construction can work with a realtor to compare builders, explain upgrade costs, evaluate lots and negotiate incentives that aren’t always obvious at first glance. Realtors can act as an advocate to help ensure a buyer’s interests are protected throughout the purchasing process.
When it comes to shopping for existing homes, realtors can recommend reputable local inspectors and help buyers weigh the true cost of future repairs and renovations. An experienced realtor can also offer valuable guidance during the negotiation process and help buyers remain competitive in highly sought-after neighborhoods.
Whether you’re a first-time home buyer, a growing family or a downsizing empty nester, consider having a knowledgeable local expert by your side to make the process as stress-free as possible!