Trying to choose between a shiny new build and a well-kept resale in Austin? You’re not alone. With taxes, HOAs, special districts, and timing to juggle, the best choice is not always the lowest sticker price. In this guide, you’ll learn how to stack the options side by side, compare total cost of ownership, and avoid common surprises in Travis County. Let’s dive in.
Compare total cost, not price
A new home may list higher but cost less to maintain early on. A resale may cost less upfront but require more near-term repairs. Build a 5 to 10-year total cost of ownership comparison so you see the full picture, not just the purchase price.
Key items to include in your TCO:
- Mortgage principal and interest.
- Property taxes and any special district taxes.
- Homeowners insurance.
- HOA dues and potential assessments.
- Maintenance and repairs. New builds often have lower early costs; older homes may need roof, HVAC, or appliance work sooner.
- Energy and utilities. New homes usually meet newer codes and can be more efficient.
- Capital reserves for big-ticket systems.
Pro tip: Ask for recent utility averages for resales and builder specs for energy features on new homes. Then estimate monthly costs across 60 to 120 months for a fair comparison.
Warranties and quality control
Many new builds include tiered warranties that can reduce risk in the first years:
- Workmanship and materials coverage, often 1 year.
- Mechanical, electrical, and plumbing, often 2 years.
- Structural elements, commonly up to 10 years, often backed by a third party.
Scope and claims processes vary by builder, so read the warranty documents closely. Resale homes do not include a builder warranty by default, though you can purchase a third-party home warranty at closing. In all cases, schedule independent inspections. For new builds, ask about pre-drywall and pre-closing inspections and how the builder handles punch-list items.
Taxes, MUDs, and HOAs in Travis County
Property taxes in Travis County include county, city, school, and sometimes special districts. New construction can lead to higher assessed values than nearby older homes. If the home is your primary residence, check whether you qualify for homestead or other exemptions. Timing and eligibility matter for your first-year bill.
Many newer subdivisions use Municipal Utility Districts or similar structures to finance infrastructure. These add separate taxes that can materially increase your annual total. Confirm the current tax rate and whether bonds are still outstanding.
HOA dues vary widely. Communities with pools, trails, and amenity centers may run higher. Review the CC&Rs for architectural rules, rental restrictions, and how fee increases are decided. Always add taxes, any MUD charges, and HOA dues into your monthly budget.
Location and lifestyle tradeoffs
Resale homes often sit in established Austin neighborhoods closer to central amenities, mature trees, and existing transit corridors. You may also find stronger comparable sales nearby for pricing confidence.
Newer planned communities tend to be in growing suburbs where you can get more square footage for the price, plus modern floor plans and amenities like community centers and trails. These areas may be farther from major job nodes. Consider current commute times to Downtown, The Domain, and tech corridors, and ask about future road or transit projects.
Timeline and flexibility
New construction timelines can range from a few months for inventory homes to 6 to 12 months or more for custom options. Factors like permitting, weather, materials, and subcontractor availability can cause delays. Review builder contracts for remedies and plan contingency housing if timing is tight.
Resale closings typically take 30 to 60 days, depending on financing, inspections, and appraisal. You often have more room to negotiate on price, repairs, and credits. For new builds, you may have customization choices, but change orders can add cost and time.
Financing and appraisal differences
For custom builds, a construction-to-permanent loan may be required, with higher down payments and interest-only payments during construction. Inventory homes often qualify for standard mortgages. Builders may offer incentives through preferred lenders, such as rate buydowns or closing cost credits. Compare these to a straightforward price reduction on a resale to see which nets out better.
Appraisals rely on comparable closed sales. In newer communities with limited comps, a new build can face appraisal gaps. Resales lean on recent neighborhood comps. Bring documentation of upgrades or features to support value if needed.
New-build checklist
Use this on site visits and in builder meetings:
Site and lot
- Orientation and sun exposure.
- Drainage and any floodplain considerations.
- Proximity to streets, amenities, or future phases.
- Availability of utilities and off-site improvements.
Builder and contract
- Local reputation and references.
- Warranty carrier and claim process.
- Change-order rules, allowances, and what is fixed price vs cost-plus.
- Remedies for delays and default clauses.
Budget and costs
- Base price, lot premium, and option pricing.
- Estimated taxes, including any special districts.
- HOA dues and amenities included.
- Sample monthly PITI and utility estimate.
Timeline and handover
- Target completion date and milestone updates.
- Stages for inspections and final walk-through.
- Certificate of occupancy and punch-list procedures.
Inspections and quality
- Independent inspection policy at pre-drywall and prior to close.
- Issue tracking and response times during warranty.
Resale checklist
Bring this to showings and offer prep:
Property condition
- Age and condition of roof, HVAC, water heater, electrical, and appliances.
- Near-term replacement timelines and budget.
Inspections and disclosures
- General home inspection plus pest and specialized checks as needed.
- Seller disclosures for renovations, permits, prior damage, or insurance claims.
Neighborhood and comps
- Recent comparable sales.
- Planned nearby developments and typical turnover.
- Current tax rate and HOA details if applicable.
Negotiation levers
- Repair credits or price adjustments.
- Contingency windows and seller-paid closing costs.
- Included items like appliances or patio furniture.
Side-by-side comparison template
Set up a simple table or worksheet with these fields for each property:
- Address or community name.
- Price, lot size, square footage, year built.
- Annual tax estimate and any special district charges.
- HOA dues and what they cover.
- Monthly PITI and utility estimate.
- Warranty details and expected 5-year maintenance.
- Commute time to your primary workplace.
- School district assignment.
- Known community assessments or upcoming phases.
- Completion or move-in timeline.
- Notes on builder incentives or seller repairs.
Which is right for you in Austin?
If you value modern layouts, lower early maintenance, and access to new amenities, a new build may fit. Just budget carefully for taxes, any MUDs, and HOA dues, and plan for potential delays. If you want a shorter timeline, established neighborhood character, and more negotiation leverage, a well-maintained resale can be a smart choice. The best answer comes from an apples-to-apples 5 to 10-year comparison tailored to your budget, commute, and timeline.
You do not have to figure this out alone. With senior-level guidance, contract know-how, and end-to-end coordination, you can choose with confidence and move on your schedule. If you are weighing new construction versus resale in Austin or nearby Travis County communities, connect with The Jesse Group to build your side-by-side comparison and plan your next steps.
FAQs
What costs should I compare beyond price in Austin?
- Include taxes and any special district charges, HOA dues, insurance, utilities, maintenance, and reserves for big systems across 5 to 10 years.
How do new-home warranties differ from a resale warranty?
- Builders often provide 1-year workmanship, 2-year systems, and up to 10-year structural coverage, while resales rely on inspections and optional third-party plans.
Will my property taxes be higher on new construction in Travis County?
- New builds often have higher appraised values and may include special district taxes, so confirm the current tax rate and any MUD before buying.
How risky are new-build timelines in Austin?
- Inventory homes can be quick, but custom or to-be-built homes can face delays from permits, weather, or supply chains, so keep contingency housing in mind.
Do builders’ lender incentives always beat resale price cuts?
- Not always; compare the net payment and total cost over several years to see if a rate buydown or closing credit beats a lower resale price.
