RE: Real Estate Podcast

Clint C. Galliano, REALTOR® (00:00)
there's fewer immediate repairs, because everything's brand new. in Louisiana, it's a one, two and five year warranty covering workmanship and materials in the first year systems like plumbing and electrical for two and major structural like you slab for five years. And so that's a big piece of

Ben Harang, REALTOR® (00:33)
Welcome back to the RE: Real Estate Podcast

I'm Ben Harang here with my cohost, Clint Galliano. Clint in Houma how you doing today,

Clint C. Galliano, REALTOR® (00:41)
Welcome a wonderful Ben in Thibodaux How you doing?

Ben Harang, REALTOR® (00:45)
I'm doing terrific. Weather's nice. Had a little project to do some sign work this morning. I got that done. And here we are this afternoon, doing it again.

Clint C. Galliano, REALTOR® (00:54)
Yes indeed, yes indeed. Well, what are we talking about today?

Ben Harang, REALTOR® (00:58)
Well, it's the ultimate buyer's dilemma. Do you go for the brand new shiny home? Were you the first person to ever use the oven? Or do you choose the established charm of a resale home with mature trees and a story to tell? Mature? Today, we're breaking down one of the biggest decisions in real estate, new construction versus

Clint C. Galliano, REALTOR® (01:15)
Mature. Mature oak trees.

Ben Harang, REALTOR® (01:26)
resale.

Okay, over the next 15 minutes or so, we're going to cover the major pros and cons of each. We talk about customization costs and those pesky hidden repairs. We'll also look at how this debate plays out right here in Louisiana, especially with things like insurance, incentives, and neighborhood amenities. By the end, you'll have a much better

idea of which path is right for you, your budget, and your lifestyle.

Clint C. Galliano, REALTOR® (01:59)
All right, so the lure of new construction.

Fancy. So there's a blank slate appeal. You're not distracted by something somebody else did or what have you. It's empty, it's clean, it's your palette to paint. So biggest appeal is that it's new. You can do the customize the finishes, countertops, flooring, paint colors.

before you move in. That's pretty much with any new construction home, with probably our biggest, I guess you could call them a regional builder. They actually do a lot of spec homes just to keep their neighborhoods going and everything, keep their machine running. So sometimes we run across those and they're past the point of customization, but it

Even then at that point, it's still easy enough to do some customizing once that home's purchased. But they also start from the ground up. And you can pick out and choose everything available for those floor plans. And then you get into the more customized home builders where you can customize every little detail. So that's a...

That's one of the appeals. Another one is that you've got efficiency, warranties and modern living. So the practical benefits are modern features and energy efficiency. Every year they come out with updated codes and a lot of the home builders.

incorporate that into their building plans. I know a lot of them have just adopted Energy Star ratings for their homes. So you get neat features like return air registers in each bedroom so you can close the door and not worry about getting hot in the summer or cold in the winter because you don't have enough airflow going through. Things like that. ⁓ They've also got better insulation.

Ben Harang, REALTOR® (03:55)
Mm-hmm. Mm-hmm. Yeah.

Clint C. Galliano, REALTOR® (04:02)
efficiency HVAC systems, new appliances, a lot of them tend to rely on gas tankless water heaters so there's less chance for water leaks and things like that and then also costs you less because you're not running a water heater to keep a bunch of water hot all the time.

Ben Harang, REALTOR® (04:22)
Right 24 7 to use it twice a day. Yeah.

Clint C. Galliano, REALTOR® (04:25)
Exactly. And

then there's fewer immediate repairs, you know, because everything's brand new. And they've also got in Louisiana, it's a one, two and five year warranty covering workmanship and materials in the first year systems like plumbing and electrical for two and major structural issues like you slab and everything for five years. And so that's a big piece of mind

Ben Harang, REALTOR® (04:51)
Mm-hmm it is But then let's talk about the cons Costs timelines and surprises It's not always a perfect picture what are the downsides of building a buying you First the sticker price sticker shock You often pay a premium for new those upgrades customizations add up fast

and there's often less room to negotiate on the base price with a builder. However, this is a huge counterpoint. Builders often offer amazing incentives, especially when they want to close out a neighborhood. They might buy down your interest rate, cover all of your closing costs, or include an appliance package. These incentives can sometimes make a new build cheaper on a monthly basis than a comparable

resale home.

Clint C. Galliano, REALTOR® (05:43)
We talked about that a couple of episodes ago.

Ben Harang, REALTOR® (05:45)
We have.

We have. And then second is the timeline. A resale home might let you close in 30 to 45 days. A new build can take six months or a year or even longer and construction delays are extremely common. Finally, in your neighborhoods, you might have to deal with ongoing construction around you for a few years.

The landscaping will be brand new. So no mature trees, no mature live oak trees, Clint. And you might have HOA fees that you wouldn't find in an older established area. So just some things to think about. They both have their pros, pros and cons.

Clint C. Galliano, REALTOR® (06:14)
Yeah.

.

Yeah, so now moving on to resale homes. So these are homes that people have lived in previously. So it's character and location. So let's flip the script and talk about the resale homes. Number one advantage is often location. Resale homes are located in established neighborhoods. Typically, we're starting to see some in the new, well, I guess,

Ben Harang, REALTOR® (06:28)
So.

Clint C. Galliano, REALTOR® (06:54)
Now we can call them formerly new construction neighborhoods, but you know, some of these neighborhoods that were built out and now the homes are starting to be resold. But typically the resales are going to be in the older established neighborhoods. So some of the reasons why you might like that might be near family and friends or closer to work or in a specific school district. These areas can have a community feel feel.

Ben Harang, REALTOR® (06:56)
Yeah.

Clint C. Galliano, REALTOR® (07:19)
that you can't build overnight. Pros, price predictability and potential. So beyond location, makes resale a great option? Price and negotiation. They're not going to sell at the same price as a new construction home. And there's generally room to negotiate. You typically get more house for your money. And you have

clear comparable market value with the other homes around you. And there's almost always room to negotiate the price in terms of the private seller. Second, what you see is what you get. You can walk through the exact same home you're buying. There's no surprises of floor plan changes or builder delays. And this is for ground up construction that it's comparing to. You also get to see the house as if the house is settled over time.

which in South Louisiana, that's definitely something you want to watch out for. And third is character. A lot of these older homes, people fall in love with them because of the unique architectural details. Hardwood floors, mature landscaping, and charm is hard to replicate in new bills.

Ben Harang, REALTOR® (08:15)
Right.

It is. Okay, so let's talk a little bit about the cons on a resale. The unknowns. Of course, character can sometimes be a nice word for old. What are the risks with resale? Yeah, it has a lot of character and the bones are good. We hear that a lot. It's got good bones. I'm not sure if you're gonna eat on it like a rib bone or what.

Clint C. Galliano, REALTOR® (08:47)
It's got good bones.

Ben Harang, REALTOR® (08:54)
The big one is maintenance and repairs. You're inheriting the home's history. The roof might need replacing in three years. The HVAC system might be 12 years old. You must budget for these potential big ticket items. Second, lower energy efficiency. An older home likely has older windows, less insulation, and less efficient systems, which can mean higher

utility bills. And finally, renovations. Unless you find a home that's been perfectly updated just for you, you'll probably have a list of cosmetic changes you want to make, which is an added cost and effort. So it's, it's the dip. There are literally pros and cons for both of them.

Clint C. Galliano, REALTOR® (09:43)
Yep. This is why we're doing the episode, for sure. All right.

Ben Harang, REALTOR® (09:46)
And just because,

and just I'm gonna add a little here, Clint, just because a resale might fit what I want, it may not fit what Clint wants. So don't let somebody talk you into or out of a new constructed versus a resale. Look at both of them and make the decision that's right for you and your family.

Clint C. Galliano, REALTOR® (10:10)
Definitely. That's conversations we have on a daily basis. All right, so the next thing to look at is the Louisiana factor. So this is how things play out locally. So to bring it home in our area, these choices stack up. So big factor for us is insurance.

Ben Harang, REALTOR® (10:15)
Mm-hmm. Mm-hmm.

Clint C. Galliano, REALTOR® (10:34)
Brand new home built to latest wind and flood codes will almost always have a significantly lower insurance premium than an older home, especially homes that were built pre-Katrina. This is a major part of your monthly payment to consider. But on the flip side, our area's got beautiful established neighborhoods with historic charm that you simply can't find in a new subdivision. So it's a real trade-off between heart and head sometimes.

Ben Harang, REALTOR® (11:05)
It is, it really is. So let's just recap it, Clint. The new construction offers modern features, energy efficiency, and warranties, but often come at a higher price unless you snag a great incentive and possibly a longer wait. Resale offers established locations, more negotiation power, and character, but comes with the risk of repairs.

and renovations. Clinton and have had this conversation before. When the market was extra hot, my suggestion to people was to go in and buy the least expensive new construction house in a subdivision, the one with the most incentives. Buy it, move in for three to five years while you're looking for the perfect house.

in the location you want, whether it's new construction or a resale. And that way you're not standing on a sideline paying rent while waiting for your perfect house. So that's just one way to skin that cat. And that's just one suggestion. Doesn't mean that that works for everybody. So.

Clint C. Galliano, REALTOR® (12:13)
and as

a teaser for the episode that's coming out this Friday. So by the time you hear this, it's going to be a couple episodes back. Don't buy your last house first.

Ben Harang, REALTOR® (12:25)
There you go. There you go. We've talked about that also. Buy you first when you get comfortable. Make it your home and then look again. okay. So how do you choose? It really comes down to your priorities. I want you to ask yourself what's more important to you right now.

a lower maintenance move-in ready home or an established location near your community with potential to build equity through updates.

Okay, thanks for tuning in to the RE Real Estate Podcast. If this episode helped you, subscribe so you don't miss our next one. Where we'll be discussing, what we're talking about in the next one, Clint? Pricing your house in a.

Clint C. Galliano, REALTOR® (13:07)
be tough

and sellers are buyers market.

Ben Harang, REALTOR® (13:11)
Okay, so we're talking about pricing. So if it helped you out, like, subscribe, share, ⁓ you can... Yeah, when you're making groceries.

Clint C. Galliano, REALTOR® (13:19)
Tell your mom and them.

Ben Harang, REALTOR® (13:24)
You have to cut this part out of it You can do that at re Real Estate Podcast dot com or your favorite podcast Site we're virtually everywhere. We're not real. We're not hard to find at all So whether it's YouTube with the video on YouTube or the audio on Spotify I heart radio iTunes we were everywhere

Clint C. Galliano, REALTOR® (13:24)
And where they can do all that, Ben?

out.

Ben Harang, REALTOR® (13:46)
it feels like we we bothering people but this is what we do

Clint C. Galliano, REALTOR® (13:52)
And for those that care,

we are podcast 2.0 compliant. So if you've got a modern podcast app, you can listen to us on there also.

Ben Harang, REALTOR® (14:01)
Interesting, interesting. We were talking before about the speed of the software and the technology, how fast it's changing. So anyway, y'all have a great day. Clint, enjoyed it. All right, see ya.

Clint C. Galliano, REALTOR® (14:13)
Have a good one, man.

Bye bye.