Is New Construction in Palm Coast Really Cheaper Than Buying Resale?

I get this question every week: is a new build actually cheaper than a resale home right now?

For a lot of buyers, the answer is YES, with a few catches most people miss.

1. Builder incentives

The biggest advantage of new construction right now is builder incentives. Builders with homes to sell have been offering interest rates as low as 3% on select homes, closing cost credits and lower down payments if you use their preferred lender.

A mortgage rate that starts with a 3 instead of a 7? That can cut your payment by hundreds of dollars a month compared to a resale home at regular rates.

Incentives change often. Call me for this week's best ones.

2. Lower insurance

New homes are built to current hurricane codes, which means much lower insurance. My trusted insurance agent just quoted one of my buyers under $700 per year on a brand-new house. Compare that to a 20-year-old home, where insurance (especially in Florida!) can be more than double.

That adds up to thousands of dollars over the years.

3. Warranties and fewer repairs

With most new construction homes, you’ll enjoy the protection of a builder’s warranty—covering everything from appliances to major systems for at least your first year, often longer.
With a resale home, a dead AC or a roof leak is on you.

4. Lower electric bills

Newer AC systems, low-E windows, better insulation and Energy Star appliances mean lower utility bills.

5. Nothing to redo

New floors, appliances and paint, and you usually get to pick the finishes. No dated cabinets or old carpet to replace.

The catches

- CDD Fees (Community Development District Fees)
Many brand new communities across Palm Coast and Flagler Beach tack on special annual assessments to fund everything from infrastructure to community pools. These fees can be several hundred (even a couple of thousand) dollars per year—and they can go up over time. Always ask for a total monthly cost, not just the mortgage.

- Higher Closing Costs
Builders often require you to use specific lenders or title companies to get incentive deals, which can inflate some of your closing costs versus a traditional resale. Even after accounting for large credits, you may find the true up-front outlay is higher on new builds—though often offset long-term by lower payments and insurance.

- Construction Delays
The cost most buyers don't expect is time. While builders work fast in Flagler County, weather, material shortages, or high demand can delay your closing by weeks or even months. Factor in the possibility of extra rent, storage, or overlapping mortgages.

Where that leaves you

Right now, new construction can be the cheaper move once you count the rate, insurance and repairs, but only if you compare the total monthly cost, CDD included. Incentives change WEEKLY. Call or text me at (386) 627-3612 and I'll show you which builders have the best rates and credits right now, and how they compare to resale homes in the same price range.