Thinking about buying a home in DeWitt and torn between a brand-new build and a resale? It is a common crossroads. You want the right layout, a smart total cost, and a clear path to closing without surprises. In this guide, you will see the real tradeoffs, how to compare total cost of ownership, and what to expect with timelines, warranties, HOAs, energy, and appraisals. Let’s dive in.

What “new construction” means in DeWitt

In the DeWitt area, new construction usually means production homes in planned subdivisions, including spec and quick-move-in homes. You will also see semi-custom or custom builds on individual lots. A home can be considered new if it is recently completed and never occupied, including a builder’s model. Standards and permitting can differ between the City of DeWitt and DeWitt Township, so timelines and utility connections may vary by location.

Total cost of ownership, explained

Comparing new construction and resale is more than list price. You want to look at total cost of ownership, or TCO. TCO includes purchase and financing costs, taxes and assessments, insurance and HOA fees, utilities, maintenance, and planned replacements over time.

Up-front and purchase costs

• Purchase price. New homes often advertise a base price that excludes many upgrades like flooring, lighting, or countertops. Resales include existing finishes in the list price.
• Lot premiums. Builders may charge different prices for lots with larger size or better orientation. Resales reflect the lot value in the sold price.
• Closing costs and concessions. Lender, title, and recording costs apply to both. Builders sometimes offer credits or rate buydowns, which reduce your cash needed but should be documented separately.
• Upgrades and change orders. With new builds, allowances and change orders are a common source of overage. Track these line by line.

Financing costs

• Resale financing is typically a standard mortgage, including options like conventional, FHA, or VA if eligible.
• New builds can involve construction-to-permanent loans or a separate construction loan that converts later. During construction, interest accrues on draws, and you may face more complex rate lock decisions.
• Longer timelines can increase your exposure to interest rate changes if you do not lock early.

Property taxes and assessments

• Michigan property taxes are based on assessed value and local millage. A new home will be assessed, then taxed according to local equalization and millage rates.
• In new subdivisions, check for special assessments for roads or utilities. Confirm details in developer disclosures and city or township records.

Insurance, HOA, and utilities

• Homeowners insurance can be comparable. New construction may qualify for some discounts due to new systems and lower near-term claim risk.
• Many new subdivisions have active HOAs, which add monthly or annual fees that affect TCO.
• Builders usually include water and sewer hookups, but meter or tap fees can apply, as can district assessments.

Maintenance and operating costs

• New builds reduce near-term maintenance because roofs, HVAC, windows, and appliances are new.
• Resales may need deferred maintenance in the first 5 to 10 years. Budget for likely replacements depending on the home’s age.
• A simple rule of thumb for a maintenance reserve is 1 to 2 dollars per square foot per year, higher for older homes.

Build a 5-year TCO view

• Annual TCO = mortgage payment + property tax + insurance + HOA fees + annual utilities + maintenance reserve.
• 5-year TCO = sum of annual TCOs + one-time items like closing costs, new-build upgrades, or major repairs on a resale.
• Use actual millage, HOA fees, and insurance quotes where possible. For energy and utilities, adjust based on age and efficiency of systems.

Timelines and what to expect

• Resale. From accepted offer to closing, many transactions finish in about 30 to 45 days depending on financing and contingencies. Cash or well-prepared files can close faster.
• New construction. If you buy a spec or quick-move-in home already underway, plan for about 2 to 6 months. If you are building to spec or custom, plan for 6 to 12 months or more depending on complexity, weather, and supply scheduling.
• Local impact. Permit timing and utility hookups can differ between the City of DeWitt and DeWitt Township. Check with local building departments for current turnarounds.

Financing and appraisals in practice

• Construction loans are often interest-only during the build, then convert to a permanent mortgage. Compare construction-to-perm options and fees with your lender.
• Lenders require appraisals for both new and resale. Resales rely on comparable sales. New homes may need the cost approach if there are limited comps in the subdivision.
• Builder incentives, such as buydowns or closing credits, help with affordability but may not increase appraised value. Document all incentives and upgrades and discuss appraisal strategy with your lender and agent.

Warranties and inspections

• New construction commonly includes a 1-year workmanship warranty, multi-year mechanical coverage from builders or manufacturers, and a 10-year structural warranty through a third-party provider.
• Resale homes may include remaining manufacturer warranties. Otherwise, your protection comes from inspections, seller disclosures, and negotiated repairs. You can consider a third-party home warranty for peace of mind.
• Always secure the full warranty in writing, know how to file a claim, and get the contact for warranty administration.
• For new builds, plan independent inspections at key stages like pre-drywall and final. Create a detailed punch list and confirm completion before closing.

Energy efficiency and monthly bills

• New builds must meet current Michigan energy codes. You often get tighter envelopes, modern HVAC, efficient windows, LED lighting, and ENERGY STAR appliances if included by the builder.
• Older homes can approach similar efficiency, but you may need upgrades to insulation, windows, or HVAC. Add one-time upgrade costs to your TCO if you plan improvements.
• Ask about optional energy features like higher R-value insulation, heat pumps, or solar-ready wiring. If you consider energy upgrades, check available federal tax credits and local utility rebates.

HOAs, covenants, and lot controls

• New subdivisions often come with HOAs or recorded covenants that govern exteriors, fencing, accessory buildings, and landscaping. These can protect uniform standards but limit your flexibility.
• Older neighborhoods may have fewer or different restrictions. Always review the recorded plat, covenants, and HOA budget and fee schedule.
• In DeWitt, you can verify covenants through the Clinton County Register of Deeds and ask the city or township for HOA contacts and fee information.

Quick decision guide

• Choose new construction if you want modern floor plans, low immediate maintenance, the latest code-level efficiency, and builder warranties, and you have flexibility on timing.
• Choose resale if you prefer established neighborhoods, mature landscaping, faster closings, potential negotiation room on price, and known property history.
• When price is close, compare 5-year TCO to capture energy and maintenance differences, special assessments, and HOA fees.

DeWitt buyer checklist

• For both options

  • Pull recent comps from the immediate neighborhood for the last 6 to 12 months.
  • Build a TCO spreadsheet that includes taxes, insurance, HOA fees, utilities, and maintenance.
  • Confirm school boundaries and commute times for your daily routine.
  • Order the right inspections and follow up on disclosures or punch lists.

• For new construction

  • Get the full builder contract, an itemized list of included features, upgrade allowances, and the change-order policy.
  • Confirm warranty terms in writing and whether a third-party structural warranty is included.
  • Clarify financing path, including construction-to-perm details and rate lock options.
  • Review lot grading and drainage plans, and ask when landscaping and final grade will be completed.
  • Check for special assessments or developer fees recorded against the lot.

• For resale

  • If applicable, obtain septic and well certifications and verify city or township water and sewer connections.
  • Assess remaining life for roof, HVAC, water heater, and windows. Get quotes for expected replacements.
  • Consider a home warranty for the first year if the seller does not provide one.

Next steps

If you want a numbers-first comparison for a specific DeWitt property, you can get a tailored 5-year TCO view that includes real millage, HOA fees, insurance estimates, and scenario modeling for rate changes. As a CPA and local agent, I will help you weigh today’s price against tomorrow’s ownership costs so you can choose with confidence.

Have questions or want to compare a new build and a resale side by side? Reach out to Josh Nelson for clear, data-driven guidance.

FAQs

What is the biggest cost difference between new and resale in DeWitt?

• New builds often have upgrade and lot premium costs not reflected in the base price, while resales can require near-term maintenance or replacements that raise early ownership costs.

How long does a new build take compared to a resale purchase?

• Resales often close in about 30 to 45 days, while new builds can range from 2 to 6 months for spec homes and 6 to 12 months or more for custom projects.

Do new homes appraise higher because they are new?

• Not automatically, since appraisals rely on market data. Limited comps can push appraisers to use the cost approach, and incentives or upgrades may not increase appraised value dollar for dollar.

Are HOA fees more common with new construction in DeWitt?

• Yes, many new subdivisions include HOAs that set standards and charge fees, which should be included in your monthly TCO comparison.

What warranties come with a new home purchase?

• Many builders provide a 1-year workmanship warranty, multi-year coverage for systems, and a 10-year structural warranty, with specifics detailed in the warranty documents.

How do I compare energy costs between a new and older home?

• Ask for utility estimates, review the age and efficiency of HVAC and windows, and include expected upgrades in your TCO. New builds often meet stricter energy codes, which can lower bills.