New Construction vs. Resale Homes in Verrado: Which Should You Buy?

You've decided Verrado might be the place.

Now comes another big decision:

Should you buy a brand-new home—or a resale?

This question comes up constantly with buyers in Verrado because you really can have both options.

You can tour a gorgeous model home, choose something brand new and potentially take advantage of builder incentives.

Then, ten minutes later, walk into a resale home with mature landscaping, shutters already installed, a finished backyard and a pool sparkling outside.

So which is the better deal?

Here's the answer buyers don't always love:

It depends.

But I can tell you what I'd look at before making the decision.

And if you're buying a second home in Verrado from Washington, there are a few things I think matter even more.

The Case for Buying New Construction in Verrado

Let's admit it.

Model homes are fun.

Everything is fresh.

The kitchen is perfect.

The lighting is perfect.

Nobody has ever put a scratch in the floor or decided that burgundy was an excellent color for the guest bedroom.

There is something incredibly appealing about being the first person to live in a home.

Depending on the builder and stage of construction, you may also get opportunities to select finishes or upgrades and make the home feel more like yours from the beginning.

And in Verrado right now, buyers have quite a few new-construction options to explore.

But here's where I want you to remember something:

The model home isn't necessarily the home you're buying.

And the price on the sign isn't necessarily what your finished home is going to cost.

The Base Price Is Only the Beginning

This is probably the biggest thing I want second-home buyers to understand.

Let's say you see a new home advertised at a price that looks fantastic.

Great.

Now let's start asking questions.

Does that price include the flooring you saw in the model?

The cabinets?

The countertops?

The lighting?

The appliances?

What about the lot premium?

Then we walk outside.

Is the backyard finished?

Is there landscaping?

A patio?

Artificial turf?

A fire pit?

A pool?

Now look at the windows.

Are window coverings included?

Because when you buy a resale home, many of those things may already be there.

That's why I don't like comparing:

$800,000 new home vs. $825,000 resale home.

I want to compare:

What will each home actually cost you by the time it's ready to live in?

That's a very different calculation.

This Matters Even More for a Second Home

If you're moving into your primary residence locally, finishing a backyard over the next year may not bother you.

But imagine buying your Arizona house while you're still living most of the year in Washington.

Do you really want to coordinate landscapers, window-covering installers, pool contractors and deliveries from 1,400 miles away?

Maybe you do.

Some buyers love creating everything from scratch. I currently have buyers building their forever home and selling their WA home at the same time.

Others would rather arrive with a suitcase, put groceries in the refrigerator and pour a glass of wine on a patio that's already finished.

Neither is wrong.

But convenience has value, especially when you're buying a second home.

The Case for a Resale Home in Verrado

Now let's walk into the resale.

Maybe it's five years old.

Maybe it's fifteen.

It isn't brand new.

But look around.

The landscaping has matured.

The backyard is finished.

The window treatments are installed.

There are ceiling fans.

The patio has been extended.

Maybe there's a built-in barbecue.

Maybe there's already a pool.

Maybe the sellers have spent years adding the exact things you would have paid to add to a new home.

And depending on the seller's situation, some furnishings may even be negotiable.

For a second-home buyer, that can be extremely attractive.

Because instead of creating the Arizona lifestyle after you buy the house, you may be able to buy a house where that lifestyle is already waiting for you.

But Doesn't New Construction Come With a Warranty?

One of the strongest arguments for buying new is peace of mind.

You're getting a new roof.

New HVAC.

New appliances.

New plumbing.

New electrical systems.

And builders generally provide warranties covering certain components of the home for specified periods.

That's appealing—particularly if you'll be leaving the property unattended while you're back in Washington.

But don't translate "new" into "nothing can go wrong."

New homes still need inspections.

Things still need adjustments.

Construction isn't perfect.

That's why I recommend that buyers treat a new-construction purchase like a serious real estate transaction—not like ordering a new car.

Yes, I Would Still Inspect a Brand-New House

I know.

It's brand new.

Why would you inspect it?

Because humans built it.

An independent home inspector is looking at the property from a completely different perspective than you are.

You're thinking:

"I love this kitchen."

Your inspector is thinking:

"Let's see what's happening in the attic."

Those are both useful perspectives.

Depending on the construction timeline, buyers may have opportunities for inspections at different stages.

We'll talk about what's appropriate for your particular purchase rather than assuming new automatically means perfect.

Now Let's Talk About Builder Incentives

This is where new construction gets really interesting.

Builders may offer incentives that a traditional seller simply can't.

Depending on the builder, home and timing, you might see incentives related to:

• Interest-rate buydowns

• Closing costs

• Design-center credits

• Lot premiums

• Quick-move-in inventory

• Other financing or purchase incentives

Those incentives can be substantial.

And sometimes they make new construction incredibly compelling.

But I don't want you to fall in love with the word incentive.

I want to know the numbers.

If Builder A gives you a huge financing incentive but the home costs significantly more once you add everything you want, is it actually the better deal?

Maybe.

Maybe not.

We need to do the math.

Or, as in a recent example. The salesperson at the model home gives you one price for the lot premium, but another salesperson on a different day gives another. 

 

Remember the people in the model homes work for the builder and have their best interest in mind, not yours.

Quick Move-In Homes Can Be the Sweet Spot

There's another option buyers sometimes miss.

You don't necessarily have to choose between:

build from the ground up

and

buy a resale.

Builders often have homes that are already under construction or completed.

These are commonly called quick-move-in, inventory or spec homes.

And for a second-home buyer, I think these can be especially interesting. It’s what we did and love it!

You may get:

the benefits of a brand-new home,

a much shorter wait,

and potentially builder incentives tied to a home the builder would like to sell.

The tradeoff is that many of the design decisions may already have been made.

Personally, I don't see that as a bad thing for every buyer.

Some of us do not need to spend three hours debating between twelve nearly identical shades of white tile.

One Very Important Thing: The Builder's Salesperson Represents the Builder

Again, I want to make this crystal clear because it's one of the biggest misunderstandings I see with new-construction buyers.

You walk into a beautiful sales center.

The salesperson is friendly.

They're knowledgeable.

They show you models.

They answer your questions.

They may be wonderful at their job.

But they work for the builder.

Their job is to sell the builder's homes.

That doesn't make them the enemy.

It simply means their role is different from mine.

When I represent you, I'm looking at the transaction from the buyer's perspective.

What are comparable homes selling for?

What does this property include?

What will you still need to spend after closing?

How does this compare with resale inventory?

Are there incentives we should ask about?

What happens if something changes?

Those are the conversations I want us having before you sign anything.

Bring Your Agent With You the First Time

This is important enough to get its own section.

If you're considering touring new construction in Verrado, talk to your real estate agent before you walk into the sales office.

Builders can have specific policies regarding real estate agent representation and registration.

Don't assume we can simply add your agent later.

If we're working together, I'd much rather plan the builder visits as part of your tour from the beginning. In fact, many of them require that I register you and schedule showings.

Then we're looking at new construction and resale homes as part of one strategy—not two completely separate shopping trips.

New Construction vs. Resale: Which Gives You More Negotiating Power?

This depends entirely on the property and the market.

With a resale home, we may be negotiating directly with an individual seller.

Maybe they've been on the market for 90 days.

Maybe they've already moved.

Maybe they're highly motivated.

That can create opportunity.

With a builder, the conversation can look different.

A builder may be reluctant to reduce the base price because that sale can affect future comparable sales within the community.

But they may have more flexibility elsewhere.

That's why negotiating isn't always about asking:

"How much will you take off the price?"

Sometimes the better question is:

"Where is the value available in this transaction?"

That's the question I want to help you answer.

Don't Forget About the Lot

This is one area where buyers can get so focused on the house that they forget what they can't change.

The lot.

You can replace countertops.

You can change flooring.

You can remodel a bathroom.

You cannot move the house.

Before choosing a new-build lot, let's look at what's around it.

What's behind you?

What's planned nearby?

Where does the afternoon sun hit?

How close are neighboring homes?

Are you paying a premium for a view?

Could future construction affect that view?

Is the backyard orientation going to matter when you're sitting outside in Arizona?

I'd rather see you compromise on a backsplash than choose the wrong lot.

And Don't Ignore Location Within Verrado

Verrado isn't one tiny neighborhood.

Where you live within the community can change your experience.

Do you want to be closer to Main Street?

Are you considering Victory?

Do you like the newer areas?

What about Regent Hills?

How important are trails, parks, golf or community amenities to you?

A gorgeous house in the wrong location is still the wrong house.

That's why I don't start with floor plans.

I start with lifestyle.

So Which Is Cheaper: New Construction or Resale?

I wouldn't answer that based on listing prices alone.

Instead, I'd create two columns.

New Construction

Purchase price

• lot premium

• upgrades

• landscaping

• window coverings

• pool or backyard improvements

• anything else needed after closing
  − builder incentives

Resale

Purchase price

• immediate repairs or updates

• anything you'd want to change
  − seller concessions, if negotiated

• the value of improvements already included

Now we're comparing something meaningful.

And sometimes the answer will surprise you.

What Would I Choose for a Second Home?

I wouldn't choose new construction or resale until I understood how you plan to use the house.

If you tell me:

"Tammy, I want brand new. I love choosing finishes. We're not in a rush and I want everything exactly the way I want it."

Fantastic.

Let's look at builders.

If you tell me:

"We want to fly down from Washington, close on the house and start enjoying it immediately. I don't want to spend six months finishing a backyard."

I'm going to show you some resales.

And if you say:

"We'd love new, but we don't want to wait a year."

Now I'm looking hard at quick-move-in inventory.

There isn't one correct answer.

There's a correct answer for you.

My Favorite Strategy? Look at Both.

This is probably the advice I'd give almost every Verrado buyer who hasn't already made up their mind.

Don't decide from Washington that you only want new construction.

And don't dismiss new construction because you assume it's going to cost more.

Let's see both.

Walk through the model homes.

Then walk through a few great resales.

Compare the lots.

Compare the neighborhoods.

Compare what you actually get for your money.

Compare what you'd still have to do after closing.

And then ask yourself one question:

Which home gets us closer to the life we're coming to Arizona to have?

That's ultimately what we're buying.

Not a floor plan.

Not an incentive.

Not a price per square foot.

A life.

Thinking About Buying in Verrado?

If you're just beginning your research, start with my Complete Guide to Buying a Second Home in Verrado from Washington.

You may also want to read When Is the Best Time to Buy a Home in Verrado? to understand how seasonality, inventory and builder incentives can affect your buying opportunity.

And if you're 55+, read my comparison of Verrado vs. Victory at Verrado before assuming one community is automatically right for you.

I'm Tammy Cannon, a real estate agent licensed in both Washington and Arizona. I specialize in helping Washington buyers explore second-home opportunities in Verrado—and that includes helping you compare resale homes with new construction so you understand the whole cost of each option.

If you're planning a trip to Verrado, let's make the builders and the resale market part of the same tour. 

And I like to make it a fun experience for you. We’ll chat over a Zoom call so I can get your wants and needs nailed down. 

Then we will plan two days together with a map of what we will be looking at and when. 

I’ll share with you my home and we’ll ride around in my golf cart and see all the hot spots in Verrado that I just love and that you may fall in love with too.

Because the goal isn't to buy a new home or a resale home. It's to buy the right Verrado home for you. Send me a DM on Instagram at @thetammycannon and we'll go from there.