New Construction vs Resale: True Cost 2026

Are those builder incentives on new construction in New Braunfels *really* saving you money, or are they masking a higher overall cost?

The Complete Picture

Buying a home in New Braunfels is a huge decision, and right now, you’re probably weighing your options: new construction versus resale homes. Builders are dangling some pretty sweet incentives to lure you in, and it’s easy to get caught up in the excitement of a brand-new, never-lived-in home. But here’s the truth: those incentives can be deceptive. Many buyers are so focused on lowering their monthly payment that they completely miss the bigger picture – the total cost of ownership and the long-term equity position they’re building. As your New Braunfels real estate expert, I’m here to cut through the noise and give you the straight facts you need to make an informed decision.

Key Insights

Incentives Aren’t Always What They Seem

Let’s be blunt: builders are running a business. Their goal is to maximize profit. Those incentives, like rate buydowns and closing cost credits, are marketing tools designed to get you in the door and signing on the dotted line. The problem is, they often inflate the base price of the home or the cost of upgrades to compensate for those incentives. So, while you might be saving a few hundred dollars on your monthly payment for the first year or two, you’re potentially paying tens of thousands more for the home overall.

For example, I recently had a client looking at a new construction home in the Veramendi neighborhood. The builder was offering a 2-1 buydown. Sounds great, right? But when we dug into the numbers, we found that the base price of the home was significantly higher than comparable resale homes in the area. Plus, the upgrades they “needed” to make the home move-in ready added another $40,000 to the total cost. Suddenly, that “affordable” new construction didn’t look so appealing.

Total Cost of Ownership Matters More Than Monthly Payment

Instead of focusing solely on the monthly payment, you need to consider the total cost of ownership. This includes: purchase price, property taxes, insurance, mortgage interest (even after the buydown expires), HOA fees (which can be substantial in some New Braunfels communities), maintenance costs (new homes require landscaping!), and potential resale value.

Running a side-by-side comparison of a new construction home and a resale home in a comparable neighborhood will give you a much clearer picture of which option is truly the most affordable. I can prepare a detailed financial model for you, showing you exactly what your costs will be over the lifetime of the loan, taking into account the expiration of any builder incentives.

For instance, in the Hill Country homes of Mission Hills Ranch or River Chase, clients often discover that resale properties not only offer more space and land but also come with established landscaping and reduced HOA fees. These are factors that can save you thousands over time—savings a builder incentive simply can’t replicate.

Resale Homes Can Offer Better Long-Term Value

One of the biggest risks with new construction in New Braunfels is that the resale value can be affected by future phases of the development. As the builder releases new homes, they are essentially competing with your resale. This can limit your appreciation potential, especially in the first few years.

Established resale neighborhoods, particularly those with highly-rated schools like those feeding into New Braunfels High School or Canyon High School in Comal ISD, tend to hold their value better over the long term. People are willing to pay a premium to live in a desirable neighborhood with good schools, which can translate to higher resale values for you down the road. Plus, many resale homes already have landscaping, window coverings, and other features that you would have to pay extra for in a new construction.

I’ve helped clients secure homes in sought-after communities like Gruene and Landa Park Estates, where charm, location, and lot size often beat what’s offered in many cookie-cutter developments. These homes appreciate steadily and appeal to a broader range of future buyers—something every smart investor should consider.

Market Reality

The New Braunfels market has shifted. We’re no longer in the frenzy of 2021 and 2022. Inventory is up – remember, we’re sitting at 5.6–6.1 months of inventory as of January 2026. This is a buyer’s market, which means you have more negotiating power than you might think. Builders know this, which is why they’re offering those incentives to try to maintain sales volume. But don’t let that desperation cloud your judgment.

Take your time, do your research, and work with an experienced real estate agent who can help you navigate the complexities of the market. I have a track record of helping my clients find the best deals, whether it’s new construction or resale, and I’m not afraid to walk away from a deal that doesn’t make financial sense for you.

Action Steps

Here’s what you need to do to make sure you’re making a smart investment:

1. Get Pre-Approved: Know how much you can realistically afford before you start looking at homes. Don’t let a builder’s incentive tempt you to overextend yourself.
2. Don’t Fall for the “Model Home” Trap: Model homes are designed to impress, and they’re often loaded with expensive upgrades that you may not need or want. Focus on the base price of the home and carefully consider which upgrades are truly essential.
3. Research Comparable Resale Homes: Before you make an offer on a new construction home, take the time to research comparable resale homes in the area. Pay attention to the price per square foot, the condition of the home, and the features that are included.
4. Negotiate, Negotiate, Negotiate: Don’t be afraid to negotiate with the builder. Even in a strong market, builders are often willing to offer concessions to close a deal. You might be able to get them to reduce the base price of the home, include some upgrades, or pay for some of your closing costs.
5. Get a Professional Inspection: Even though a new construction home is brand new, it’s still important to get a professional inspection. A qualified inspector can identify any potential problems with the home before you close the deal.

Frequently Asked Questions

1. Is new construction *always* a bad deal? No, not necessarily. There are certainly situations where new construction can be a good option, especially if you’re looking for a specific floor plan or if you want to customize the home to your exact specifications. However, it’s important to be aware of the potential pitfalls and to do your research before you make a decision.
2. What are the typical closing costs in New Braunfels? Closing costs typically range from 2-5% of the purchase price of the home. This includes things like title insurance, lender fees, appraisal fees, and recording fees.
3. What is a rate buydown, and how does it work? A rate buydown is a type of financing where you pay points upfront to reduce your interest rate for a certain period of time, typically one to three years. After that period, your interest rate will revert to the original rate. Builders often offer rate buydowns as an incentive to attract buyers.
4. What should I look for in a good real estate agent? You want an agent who knows the New Braunfels and Hill Country market inside and out, who has a proven track record of success, and who is willing to put your interests first. They should be able to provide you with objective advice and guidance, and they should be able to negotiate effectively on your behalf.
5. How do I determine the true cost of ownership? The true cost of ownership includes all of the expenses associated with owning a home, including the purchase price, property taxes, insurance, mortgage interest, HOA fees, maintenance costs, and potential resale value. To get an accurate picture of the total cost of ownership, you should create a detailed budget that takes into account all of these expenses. I’m happy to provide this analysis for you, tailored to your specific needs.

Closing

Don’t let the lure of builder incentives cloud your judgment. By focusing on the total cost of ownership and doing your research, you can make a smart investment that will pay off in the long run. Remember, the goal is to find a home that fits your needs and your budget, both now and in the future. I’m here to help you navigate the New Braunfels real estate market with confidence and make the best decision for your financial future. I use data-driven insights and a no-nonsense approach to ensure my clients get the best possible outcome, whether they’re buying or selling.

Ready to talk strategy? Call Cody Posey at 830.360.5569.